tiVEEKLY e evis DigestOn J %J x p ! ` . r .b7 ".; F _l G__` ,( = a e'w Y DECEMBER 7, 1959 1959 TRIANGLE PUBLICATIONS, INC. VOL. 15: No. 49 The authoritative service for executives engaged in all branches of the television arts & industries SUMMARY -INDEX OF WEEK'S NEWS FCC Manufacturing c Distribution AROUSED FCC BEGINS TIGHTENING SCREWS, asking all sta- BRIGHT PICTURE for Christmas season & first-half 1960, as busi- tions to report payola incidents & policing plans; cracking down ness prognosticators unanimously see consumer spending boom in other areas (pp. 1 & 6). continuing at least 6 months more (p. 17). FCC PROPOSES SIMPLE BOOSTER STANDARDS, but most existing STEREO DE -CONFUSION DRIVE to be launched by EIA phono operators would have to buy new equipment or re -work old to manufacturers with $500,000 war chest. Non -technical campaign meet "translator" requirement (p. 4). will stress music (p. 17). ATTACKING FCC LOGJAMS, Federal Communications Bar Assn. FM AUTO RADIO, to be introduced by Motorola, may give schedules shirt -sleeve session on delays (p. 6). another boost to rising FM market. Hi-fi quality claimed for easily Stations installed deluxe set (p. 18). RCA RESHUFFLES TV-radio -phono activities into a single home - NAB'S TV CODE TOUGHENED & tightened by TV Board in new instrument organization, with J. S. Beldon running marketing, ex - regulations covering quizzes, payola, ad frauds, program fakery, ITT-Federal Pres. D. L. Mills handling operations (p. 19). news interviews (pp. 3 & 6). TV-RADIO SALES & OUTPUT in Oct. drop seasonally from Sept., ' TASO -LIKE ORGANIZATION for stereo radio proposed by NSRC to but continue well ahead of 1958 figures (p. 19). bring RCA & CBS back into fold (p. 5). Networks Auxiliary Services SELF -REGULATION GROWS in TV industry as CBS -TV tightens BREAKS INTO in Silver TELEPROMPTER CATV, buying systems controls on payola & programs, NBC creates a new super -censor, City & Farmington, N.M. and Rawlins, Wyo., and taking options and stations give new support to NAB code (pp. 3 & 9). on 11 more setups across country (p. 4). FCC SPOT -REP DECISION ATTACKED by NBC & 4 of its repped Advertising stations. CBS & its stations decide not to object. NBC offers (p. 10). FTC HOLDS 'FIRE in big TV -radio offensive vs. commercials, but substitute hits 9 record makers & distributors in new drive (p. 2 & 12). SPACE TV RELAY TESTS to be foreshadowed next spring by first Film á Tape of 3 experimental passive communications satellites. NASA invites experimenters to have a free bounce (p. 11). ACTION ON FILM EXPORT BAN takes place as 17 telefilm com- panies which sell the overseas market discuss an organization to Other Departments combat quotas, restrictive prices (p. 14). PERSONALS (p. 14). FINANCE (p. 22). ETV (p. 23). FOREIGN (p. 24). AROUSED FCC BEGINS TIGHTENING SCREWS: Powerful weight of FCC is now in mo- tion. Fully aware of its tremendous strength & responsibilities, Commission is carefully entering the critical field of programming. Momentum is great. Pressure is on, no end in sight. Commission is moving cautiously on programming, leading off with massive exploratory hearing starting this week '(Dec. 7), largely because Chmn. Doerfer is genuinely fearful lest the ponderous hand of govt. constrict freedom of TV & radio in violation of First Amendment. (For list of early hearing witnesses, see p. 6.) But majority of his colleagues see no such danger. Most indicative of FCC's "let's act" mood is the sweeping nature of its move last week in an area where it has no doubt about its authority-violation of law through payola, which amounts to concealed sponsorship, prohibited by Sec. 317 of Communications Act. Meanwhile, FTC moved swiftly with its first payola complaints, naming names (see p. 12). FCC wrote to every station in the land, asking them to list by Jan. 4 every instance of payola or "sneaky commercials" of any kind occurring since Nov. 1, 1958. And it asked each licensee to tell what it's doing to stop or prevent the practice. www.americanradiohistory.com 2 DECEMBER 7, 1959 Commission action raises good question as to how far Rep. Harris will go in his payola investiga- tion. Congressional hearings are designed to explore need for new laws. There seems to be no question that existing law covers payola adequately and that FCC is trying to enforce it. FCC's attitude is not punitive. It wants under-the-table practices stopped but isn't out to make an example of anyone. But-how about Internal Revenue Service? Evidently, IRS agents will be able to ex- amine stations' responses to FCC's questions, and some sad DJs, et al, will be asked serious questions about their income tax returns. (for exact language of FCC's questions, see p. 6). Commission's payola inquiry could be a public relations boon to industry, because almost all sta- tions will reply "no payola here" and FCC will report that fact. There's no plan to make replies public. Project has been turned over to FCC's Renewal & Transfer Div., under its experienced & reliable chief, attorney Joseph H. Nelson. Individual stations which happen to be in trouble with FCC for one reason or another find Commis- sion getting tough. Last week, for example, radio KIMN Denver was asked to show cause why its license shouldn't be revoked because a disc jockey had broadcast material that was "vulgar, indecent, ribald, offensive, in bad taste, suggestive, with double meaning, and/or obscene." The DJ has been fired, and .KIMN management has given assurances that such things won't happen again. Once upon a time, that might have been enough for FCC. It isn't now. Revocation proceedings are extremely rare. Also last week, license re- newal of radio KMAC San Antonio was designated for hearing because owner Howard W. Davis, in corn- petitive hearing for Ch. 12, misrepresented his financial situation. In May 25, 1956 decision, won by KONO- TV, Commission upbraided Davis for "lack of candor." According to those canny Washington weathervanes, the TV -radio attorneys, the honeymoon is over. Several have told us that they've been warning clients that they'd better get their houses in order, that FCC is truly aroused & dangerous. You can expect tightened regulation all along the line. FTC HOLDS FIRE IN BIG TV-RADIO OFFENSIVE: In what had been billed' as broad- casting's big ordeal by Federal Trade Commission fire (Vol. 15:48 pl ), 6 top TV & radio chiefs lined up warily last week before all 5 FTC members. They came away from face-to-face confrontation 11/2 hours later, displaying no more wounds than industry already had suffered from TV quiz scandals. "We mean business," said FTC Chmn. Earl W. Kintner sternly at outset of unprecedented showdown on questionable advertising practices. He had summoned CBS, NBC, ABC, MBS, and NAB leaders to session to confess their sins, propose self -reforms and prepare to defend themselves against major onslaughts mounted by fraud -policing agency. "We are convinced that you mean business," Kintner observed at end of session, which he described as "very worthwhile & excellent." Closed meeting had first been scheduled, in line with FTC procedures for informal industry conferences, but Kintner at last minute threw it open to public & press -which saw no fireworks (see p. 12). "The Commission is heartened by all this activity in the industry," Kintner said after CBS's Frank Stanton, NBC's Robert E. Kintner (no relation), ABC -TV's Oliver Treyz and MBS's Robert F. Hurleigh told about self-regulation measures already taken by networks. He also said FTC would count on "close cooperation & liaison" with NAB's Harold E. Fellows & Donald H. McGannon, who reminded FTC that TV Code was being tightened (see p. 3). "We're very happy over the information we have received here," FTC Comr. Robert T. Secrest chimed in. And all FTC members stressed that despite their apparent concentration on broadcast commercialism now, they are equally concerned about advertising deceptions in print media. "We are not playing favorites here," Kintner assured broadcasters' spokesmen. "The smoke produced by a few illegal fires has set up a pall of suspicion over [the TV -radio] industry whose genuine usefulness to the nation's economy can ill afford it. I would go further & say that, while the existence of the fires cannot be doubted, they have produced an amazing amount of smoke. Indeed, they have created more public conster- nation than equally dangerous fires burning in other media." FTC's heat hasn't been taken off broadcasters & sponsors. But at least no new anti -TV -radio blazes were set at last week's summit meeting, which will be followed by others. We asked Kintner next day if he had had any second thoughts about it. "No," he told us. "I & my colleagues are tremendously pleased with the meeting. We feel that the stage was well set for further cooperation between the Commission & the industry." www.americanradiohistory.com VOL. 15: No. 49 3 NAB'S TV CODE IS TOUGHENED & TIGHTENED: Acting in bitter backwash of TV quiz scandals, NAB's TV Board last week met in emergency session, adopted half -dozen amendments to industry's 1' self-regulating Code. All of them were hopefully drafted as TV's own answer to cries in and out of Congress that what TV needs is more govt. control. "This is a belt -tightening operation," said Chmn. G. Richard Shaf to (WIS-TV Columbia, S. C.) follow- ing closed meeting in Washington's Shoreham Hotel, where 14 -man TV Board pored over recommendations of Code Review Board (Vol 15:47 p3) for 31/2 hours before agreeing on precise language of revisions.