Sponsor (Jan-Apr 1958)

Record Details:

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Abolition of network option time would slowly erode clearances with a checkerboard pattern whose impact noes far beyond the actual periods closed to clients, M warn networks and affiliates. While option time is widely favored, not everybod iustry goes along • Veteran rep Edward Petry came out with a strong and pointed defense of network option time. While most reps are in favor of option time in general, main would like to see some limitations so as to provide more spot program availabilities in cream evening time. Petry's statement contained no reservations on this score. It was also significant in \ iew of the public silence among reps. • CBS TV affiliates rallied behind their network and threw down the gauntlet in a resolution "to oppose vigorously the findings, conclusions and recommendations of the Barrow report on network broadcasting which affect affiliates as a group." A special committee under John S. Hayes, president of the Washington Post stations, was named to direct and unify the strategy of CBS affiliates in the counter-attack. While the Barrow report aimed shafts at a number of vital /ones ol network operation, much testimony is expected to revolve around the proposal to ban option time, which the Bariow group said probably violated antitrust law-. Except possibly for the proposal to limit ownership of stations by networks, there is no Barrow proposal thai siiike si, close to the foundations ol network operation. It was no accident that, of all the Barrow recommendations 'and there are main). Petry i entered his fire on the proposed ban. Furthermore, there is no Barrow proposal likely to affeel t\ advertising so much as the option time proposal. \\ nether or not it would cripple the networks (and the feeling that it might is mil unanimous, even anion broad v in ina tasting executives) there is little question that the scuttling of network option time would have considerable impact on the methods and strategy of buying tv stations singly or in groups. Exactly what would happen in the event option time were banned is not easily spelled out. This cloud of uncertainty is one of the reasons (though not the most important! why the networks and most of the stations fear its abolition. However, the bedrock basis is the assumption that if a network cannot offer pre-cleared time on a more or less simultaneous basis across the country, then it really has nothing to sell. Before attempting to construct the possible consequences of an option time ban, an examination of the present option time arrangements would be in order. The FCC's Chain Broadcasting Regulations permit networks to option no more than three hours during each of the following time segments: 8:00 a.m. to 1 p.m., 1:00 to 6:00 p.m., 6:00 to 11:00 p.m. and 11:00 p.m. to 8:00 a.m. In exercising an option, the network must give the station at least 56 days' notice. The time can be recaptured from any local or national spot program, commercial or sustaining. But the option cannot be exercised against another network. The FCC regulations provide these limitations insofar as contractual agreements between network and affiliate are concerned. This means the network is free to negotiate with stations to clear programs in non-option or station time. But it cannot exercise a unilateral option or compel an affiliate to cancel an existing program. Furthermore, it is believed that a program that straddles option time (say from 10:00 to 11:00 p.m. I is to be considered in non-option time. Stations can cancel network programs, even in option time, under three conditions. As set forth in the FCC's regulations, they are: (1) when the station reasonably believes the program is unsatisfactory or unsuitable, (2) when the station believes the program is contrary to the public interest and (3) when the station wishes to substitute a program of local or national importance. THE ABC's OF OPTION TIME A. WHEN IS IT PERMITTED? FCC's Chain Broadcasting Regulations provide that networks can option no more than three hours during each of the following four segments: 8:00 a.m. to 1:00 p.m.. 1:00 to 6:00 p.m.. 6:00 to 11:00 p.m., 11:00 p.m. to 8:00 a.m. B. HOW DOES IT WORK? In exercising must give station at least 56 days notice. Optic against local program but not against anothei rule does not prevent network from programing during C. WHAT ARE STATION'S RIGHTS? Station deal if it (1) believes program is unsuitable or i (2) feels ili' program is not in the public inter* to substitute a program oi local or national important lion. network be . xercised ork. Option on time can refuse to t sati sfactory, , (3) wishes for w eh show SPONSOR • 25 JANUARY 1958