Word: fcc
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Dates: during 1940-1949
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...less than four full-time stations," i.e., less than enough to allow CBS, NBC Red, NBC Blue and Mutual one outlet apiece. All 14 were NBC affiliates having the usual five-year contracts with NBC-contracts giving NBC an option on their best hours on 28 days' notice. FCC's new regulations modified this, requiring 56 days' notice. But FCC's regulations were not yet in force...
...Manhattan, CBS's earnest young President William S. Paley assumed the worst. The suit, he said, was "evidently an outgrowth of the persistent attempt by FCC to tear apart the present system of network broadcasting in favor of its own impractical theories." In Florida, vacationing Niles Trammell, NBC president, merely said he was "at a loss to understand" why the suit was brought...
...desk of Fred Weber, Mutual's general manager, there lay last week not only a brief prepared by Mutual's lawyers in support of FCC against CBS and NBC, but an affidavit of Mr. Weber's. It recounted, among other business tales, the story of a program known as Ballantine's Three-Ring Time. This program went on the air for a 52-week run over a 77-station Mutual network last September...
...broadcasting field. To Mutual it was restraint of trade, made possible by 1) the option system and 2) the fact that NBC, owning both Red and Blue networks, can recoup on the enormously lucrative Red any losses sustained in snapping up business for the Blue. To Mutual, FCC was a friend because it wanted to alter 1) and, by compelling NBC to sell the Blue, do away with 2). To NBC and CBS, FCC was an enemy because it wanted to go a great deal farther than that...
Messrs. Paley and Trammell had to think about these matters because it was plain to them that FCC's proposed regulations would not merely prevent such squeezes as Mutual complained was applied to it by NBC's Blue. The proposed rules were sweeping and revolutionary. They required that no station anywhere be linked by option-contract to one network alone. On the face of it, that would mean no NBC ... no CBS in their present advantageous forms...