COMPANIES’ BAN

Dominion, Volume 28, Issue 256, 26 July 1935, Page 12

COMPANIES’ BAN

Use of Records by Private B Class Stations

BROADCASTING FEES By Telegraph.—Press Association. Christcliurcli. July 25. Station 3ZM and all other private or club-supported B class radio broadcasting stations in the Dominion arc faced with the prospect of closing down almost immediately following the receipt of notice from the gramophone industry forbidding the unauthorised use of records in prugrannnes transmitted. it appears that action by the Government. is Hie only possibility of keeping these stations on the air. In addition to Hie ban on the use of records the companies have requested stations to furnish details of all records broadcast without authority during the past three years, and a demand has been made for 10/- per record side for each time a record has been used in a programme without authority. Failing receipt of an undertaking to cease unauthorised broadcasting or details asked for, the companies reserve tlie rigid: to take legal action for an injunction, damages, and other relief to which they may be entitled. In the case of station 3ZAI. which has been on the air for two years and four months, the amount to be paid for records broadcast in the past would be approximately £25(1 a week, or a total of about. £.’16.000. As far as the other stations are concerned Ibe amount will vary according ‘ > tlie number of records broadcast.

A MISAPPREHENSION?

No Sponsored Programmes

By Telegraph.—Press Association.

Dunedin. July 25.

The consensus of opinion am ng the proprietors of the four B class stations at Dunedin—■4ZAI. 4ZP, 4ZB and 4ZL—appears to be that the demand made by the International Federation of Phonograph Industries has so far as these stations are concerned been issued under a misapprehension regarding their status. The federation has demanded 10/- a record side for each time a record has been-used without authority in a siKinsored programme by a commercial station. Actually, none of the Dunedin B stations could be classed as a. commercial undertaking, as each of them is operated under ordinary private transmitter’s license. Moreover, none of them derives revenue from advertising. as sponsored programmes, as is well known, are not permitted in New Zealand.

In the meantime, all the stations propose to carry on and to await some more definite action on the part of the federation. If the worst comes to the worst, however, they will be able for a time at least to transmit, modified programmes with records which are inannfactured by companies not. allied to Hie federation, and are therefore not. subject. to the payment, of royalties. Should the federation insist on demanding royalty payments for records used during the past, three years, station 4ZM, for instance, would be faced with a bill of approximately £50.000. AUCKLAND OPINION By Telegraph.—Press Assoeiiitiun. Auckland, July 25. The opinion among proprietors of the three B class radio stations at Auckland is thut the position raised by the gramophone interests’ circular needs clarifying. In the meantime stations IZB and IZ.M have decided to carryon, but the owners of station IZ.T have decided to close that, station pending further light on the situation. NELSON LIABILITY By Telegraph.—Presa Association Nelson. July 25. The 2ZR Radio Club’s alleged liability for broadcasting copyright records is about £43.000. YEAR-OLD WARNING Action by the gramopliulie imi-.isiry to forbid the unauthorised use of records by private and club-supported B stations throughout New Zealand, and also t:» levy a charge for the use made of records during tlie past three years, apparently is a sequel to preliminary warnings issued by gramophone record-makers in Australia a year ago. In spite of these warnings private B-elass stations have continued to broadcast records without coming to any definite arrangement with the industry.

The view taken by gramophone companies in the past is that the sales of their records are seriously affected by the constant repetition of records on the air, and also the mulliplicity "f radio stations in New Zealand. AA'hen asked by “The DoniiiUolT' to coinnient on the position. Air. F.. G. Hands, the Broadcasting Board's general manager, said last night that the board worked under an arrangement with the gramophone companies, mid this arrangement covered not only the national stations but also I< stations nt Napier. Gisborne. Palmerston North, Alastcrton, New Plymouth, Groymoufli and Invercargill, all of which were subsidised by the board.