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

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2

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5

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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__

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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)

Page

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.

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E. Network ownership and operation of stations.

F. NBC's Red and Blue networks_

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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_

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Additional views of Commissioners T. A. M. Craven and Norman S. Case_

111

FEDERAL COMMUNICATIONS COMMISSION

REPORT ON CHAIN BROADCASTING

[Pursuant to Commission Order No. 37]

Docket No. 5060

(V)