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TK 6570
.27 459 1941
FEDERAL COMMUNICATIONS COMMISSION
JAMES LAWRENCE FLY, Chairman
PAUL A. WALKER
NORMAN S. CASE
T. A. M. CRAVEN
GEORGE HENRY PAYNE
FREDERICK I. THOMPSON RAY C. WAKEFIELD
For sale by the Superintendent of Documents, Washington, D. C.
DEPOSITED BY THE
UNITED STATES OF AMERICA
MAY 19 '41
6-5-41
FIN
וי
Introduction_
A. History of proceedings.
TABLE OF CONTENTS
Page
1
2
3
5
6-
7
B. Scope of this report...
C. Nature and significance of chain broadcasting.
I. Early History of Network Broadcasting (1923–26)
A. The A. T. & T. network__
B. The RCA network.
C. Sale of WEAF and the Telephone Company network to RCA.
D. Formation of the National Broadcasting Company.
II. The Radio Corporation of America and the National Broadcasting
Company
A. History and activities of RCA.
1. Communications activities of RCA.
2. RCA's radio manufacturing and selling activities.
3. RCA's interest in the motion-picture industry-
4. RCA's phonograph and recording business _ -
B. The National Broadcasting Co.
1. Increase in number of NBC outlets.
2. Stations owned or controlled by NBC.
3. Increase in business and income of NBC.
4. NBC artists' bureau and concert service..
5. Transcription business of NBC..
C. Summary of RCA's scope of operations.
III. The Columbia Broadcasting System.
A. Formation and early history-
B. Growth of CBS network..
C. Management of artists by CBS..
D. CBS' phonograph and transcription business
IV. The Mutual Broadcasting System.
A. Formation of Mutual..
B. Development of the Mutual network.
V. Regional Networks__
11
13
14
15
16
17
18
21
23
24
25
26
27
29
30
32
5. Proportion of industry income received by NBC and CBS.
6. Income and investment of NBC and CBS
VI. Scope and Manner of Operation of the Nation-Wide Networks
A. Predominance of NBC and CBS in the broadcasting field........
1. Stations affiliated with NBC and CBS.
2. Ownership of stations by NBC and CBS_
3. Proportion of broadcasting business handled by NBC and
CBS...
4. Payments to stations affiliated with NBC and CBS
(III)
VII. The Effect of Network-Affiliate Relations on Competition in the
Radiobroadcast Industry.
A. Exclusive affiliation___
1. Licensee allowed to broadcast programs of only one network.
2. Network allowed to send programs to only one station__.
B. Long-term affiliation contracts.
C. Network optional time..
D. Rejection of network programs.
46
51
57
59
62
65
E. Network ownership and operation of stations.
F. NBC's Red and Blue networks_
66
70
G. Limitation of competition between network and outlet-
H. Interrelations among network practices__
I. Status of network-stations relationships under these regulations_
J. Application of regulations to regional networks. -
VIII. Jurisdiction _ _
A. Jurisdiction under the commission's licensing power.
1. The power to deny applications___
2. The power to issue rules and regulations.
B. Jurisdiction under the commission's power to make special regula-
tions respecting chain broadcasting-
IX. Conclusion _ _
Order Containing Regulations.
Appendices.
A. Order instituting chain broadcasting investigation
B. Memorandum of submittal and conclusion of chain broadcasting
committee report_
C. Procedure for oral argument on network inquiry report.
D. Regional networks_
73
75
77.
77
80
85
88
91
93
95
Additional views of Commissioners T. A. M. Craven and Norman S. Case_
111
REPORT ON CHAIN BROADCASTING
[Pursuant to Commission Order No. 37]
Docket No. 5060
(V)