Columbia Broadcasting System

“ Appellant's total property devoted to its broadcasting business exceeds $18,000,000 in value; its earnings from the network exceeded $3,000,000 in both 1939 and 1940.
Chain broadcasting is the means by which radio programs are made available to all or a large part of the nationwide radio audience. It is defined by the Communications Act, 47 U.S.C. § 153 (p) , 47 U.S.C.A. § 153 (p) , as the 'simultaneous broadcasting of an identical program by two or more connected stations'. ”

“ Appellant or its predecessor has been engaged in the business of nationwide network or chain broadcasting since 1927. It has a large amount of physical property used in the business and has built up a valuable goodwill. For its broadcasts it maintains a staff of employees and expends large amounts for musicians and broadcasting performers. It has commitments by long-term contracts aggregating more than $4,000,000 for broadcasting expenditures, including those for the use of land and buildings and for the furnishing of news and broadcasting programs in the next few years. ”

“ The chain broadcaster prepares radio programs, for which it engages performers in advance, and simultaneously broadcasts them over a large number of radio stations to which the programs are transmitted from some central point of origination by wire telephone lines leased by the broadcaster, here the appellant. The programs, which are prepared well in advance of the broadcast and given by persons employed for the purpose by appellant, are of two classes-commercial programs sponsored and paid for by advertisers, and sustaining programs furnished by appellant and not paid for by any advertiser. ”

“ Licensees who regard the regulations as invalid are free to continue their existing contracts and at the same time challenge the regulations in the orderly manner provided by the Act-and without any danger of losing their right to continue broadcasting. Similarly, the interests of the networks may be protected through intervention in renewal proceedings. ”

“ That by reason of the 'leverage of its network power' CBS was able to restrain trade among the independently owned UHF stations in the Milwaukee area; and (2) that CBS' purchase of a television station amounted, per se, to an unreasonable restraint of trade. How either of these alleged restraints, assuming they are unlawful, caused petitioner's alleged loss is left a mystery. Regardless of any question of causation, however, petitioner can prevail on neither theory. ”

“ What did remain open to proof was an alleged arrangement among CBS, its television division, and its officers and agents whereby CBS canceled an affiliation with one UHF station and purchased the facilities of a competing station. Even if somewhere among those sought to be drawn into petitioner's net there can be found two independent actors whose meeting of minds would satisfy the usual conspiracy requirement of 'plurality of parties,' [4] their agreement to carry out that design would not, in my view, of itself offend anything proscribed by §§ 1 or 2 of the Sherman Act. ”

“ Engaged to be buried. Leonard Freeman Productions, Inc. Produced in association with the CBS Television Network. 60 min., sd., color, 16 mm. (Hawaii Five-O) © Columbia Broadcasting System, Inc.; 20Feb73; LP42890.
LP42891.
Jury of one. Leonard Freeman Productions, Inc. Produced in association with the CBS Television Network. 60 min., sd., color, 16 mm. (Hawaii Five-O) © Columbia Broadcasting System, Inc.; 6Mar73; LP42891.
LP42892.
Death is a company policy. Leonard Freeman Productions, Inc. Produced in association with the CBS Television Network. 60 min., sd., color, 16 mm. ”

“ The Commission has been charged with broad responsibilities for the orderly development of an appropriate system of local television broadcasting. The significance of its efforts can scarcely be exaggerated, for broadcasting is demonstrably a principal source of information and entertainment for a great part of the Nation's population. The Commission has reasonably found that the successful performance of these duties demands prompt and efficacious regulation of community antenna television systems. ”

“ Appellant, National Broadcasting Company, maintains two radio broadcasting systems, the 'blue network' and the 'red network'. The two other appellants operate radio broadcasting stations licensed by the Communications Commission, and have entered into contracts with National similar to those involved in the Columbia case and to those of other stations which participate in National's networks. ”

“ The Commission found that there would be interference with KOA's broadcast in the eastern part of the United States if WHDH's application were granted. The Commission's own reports to Congress show that at night a small proportion of the urban population and a much larger proportion of the rural population of the country enjoy only such broadcasting service as is afforded by clear channel stations. ”

“ In addition, 25 stations were affiliated with both NBC and Mutual, and 5 with both CBS and Mutual. These figures, the Commission noted, did not accurately reflect the relative prominence of the three companies, since the stations affiliated with Mutual were, generally speaking, less desirable in frequency, power, and coverage. It pointed out that the stations affiliated with the national networks utilized more than 97% of the total night-time broadcasting power of all the stations in the country. ”

“ Nor can we doubt that CATV systems are engaged in interstate communication, even where, as here, the intercepted signals emanate from stations located within the same State in which the CATV system operates. [29] We may take notice that television broadcasting consists in very large part of programming devised for, and distributed to, national audiences; respondents thus are ordinarily employed in the simultaneous retransmission of communications that have very often originated in other States. The stream of communication is essentially uninterrupted and properly indivisible. ”

“ The benefits of such diversity are not limited to the members of minority groups who gain access to the broadcasting industry by virtue of the ownership policies; rather, the benefits redound to all members of the viewing and listening audience. As Congress found, "the American public will benefit by having access to a wider diversity of information sources." ”

“ A Government mandate for a substantial societal investment in alternative distribution systems for cable subscribers, such as the 'A/B' input selector antenna system, is not an enduring or feasible method of distribution and is not in the public interest. (19) At the same time, broadcast programming that is carried remains the most popular programming on cable systems, and a substantial portion of the benefits for which consumers pay cable systems is derived from carriage of the signals of network affiliates, independent television stations, and public television stations. ”

“ Long experience in broadcasting, confirmed habits of listeners and viewers, network affiliation, and other advantages in program procurement give existing broadcasters a substantial advantage over new entrants, even where new entry is technologically possible. These advantages are the fruit of a preferred position conferred by the Government. Some present possibility for new entry by competing stations is not enough, in itself, to render unconstitutional the Government's effort to assure that a broadcaster's programming ranges widely enough to serve the public interest. ”

“ The Federal Communications Commission has for many years imposed on radio and television broadcasters the requirement that discussion of public issues be presented on broadcast stations, and that each side of those issues must be given fair coverage. This is known as the fairness doctrine, which originated very early in the history of broadcasting and has maintained its present outlines for some time. ”

“ Among these pioneer stations was KTW, owned by the First Presbyterian Church of Seattle, one of the earliest to broadcast religious services. Allotment of broadcast time was settled by daily argument before the United States Radio Commissioner. Radio broadcasting was still a nonprofit enterprise; advertising was prohibited, and stations were established by various firms chiefly as good-will offerings, in the hope that the publicity might return something on the investment. In Spokane, a boys' club, under the guidance of a science teacher, set up that city's first station, KFIO, in 1922. ”

“ The rapidity and yet sureness with which it built its organization, and the far-sighted policy by which it was inspired, convinced not only myself, but every member of the Committee, that the public had got now and powerful friends in those responsible for the managerial, engineering and programme departments working together with remarkable smoothness to add a new interest to the lives of the people.
It is impossible to foretell the social effects that broadcasting is likely to have in the course of years. ”

“ The communications broadcasted are no less complete and effective, nor any the less effected by appellant, because it does not own or command the apparatus by which they are received. The essential purpose and indispensable effect of all broadcasting is the transmission of intelligence from the broadcasting station to distant listeners. It is that for which the customer pays. By its very nature broadcasting transcends state lines and is national in its scope and importance-characteristics which bring it within the purpose and protection, and subject it to the control, of the commerce clause. ”

“ See also Radio Jonesboro, Inc., 100 F.C.C.2d 941, 945, n. 9 (1985) (" ' [T] here is a critical underrepresentation of minorities in broadcast ownership, and full minority participation in the ownership and management of broadcast facilities is essential to realize the fundamental goals of programming diversity and diversification of ownership' ") (citation omitted) . The FCC's conclusion that there is an empirical nexus between minority ownership and broadcasting diversity is a product of its expertise, and we accord its judgment deference. ”

“ A station should be ready, able, and willing to serve the needs of the local community by broadcasting such outstanding local events as community concerts, civic meetings, local sports events, and other programs of local consumer and social interest. We conclude that national network time options have restricted the freedom of station licensees and hampered their efforts to broadcast local commercial programs, the programs of other national networks, and national spot transcriptions. ”

“ The Commission has ample power under these provisions to prevent a Los Angeles television broadcaster from interfering with broadcasting in San Diego. For example, the Commission could stop a Los Angeles television station from owning and operating a wire CATV system which carried the station's signals into San Diego. The Commission should also be able to prevent a third party from disrupting Commission-licensed broadcasting in the San Diego market. ”

“ The Commission is given no supervisory control of the programs, of business management or of policy. In short, the broadcasting field is open to anyone, provided there be an available frequency over which he can broadcast without interference to others, if he shows his competency, the adequacy of his equipment, and financial ability to make good use of the assigned channel.' Federal Communications Comm. ”

“ The splendid work of our engineers has, within an incredibly short time, enabled us to guarantee a programme which can be broadcast simultaneously from any or every station to the rest of the country. This first issue of the Magazine contains some simultaneous broadcast programmes and indicates wonderful possibilities for the future. The individuality of local stations will still he preserved, as the nights for general broadcasting will be limited.
Our policy is a policy of development to serve the greatest needs of the public, and our faith is that the public will loyally support us. ”

“ The fact that adjustments are required before a CBS color broadcast can be received in black and white on existing sets makes this system 'incompatible' with the millions of television receivers now in the hands of the public.
There is no doubt that a 'compatible' color television system would be desirable. Recognition of this fact seems to be the controlling reason why the Commission did not long ago approve the 'incompatible' CBS system. In the past, it has postponed adoption of standards with the hope that a satisfactory 'compatible' color television system would be developed. ”

“ It is quite possible, of course, that maximum utilization of the radio as an instrument of culture, entertainment, and the diffusion of ideas is inhibited by existing network arrangements. Some of the conditions imposed by the broadcasting chains are possibly not conducive to a freer use of radio facilities, however essential they may be to the maintenance of sustaining programs and the operation of the chain broadcasting business as it is now conducted. But I am unable to agree that it is within the present authority of the Commission to prescribe the remedy for such conditions. ”

“ Television viewing results from combined activity by broadcasters and viewers. Both play active and indispensable roles in the process; neither is wholly passive. The broadcaster selects and procures the program to be viewed. He may produce it himself, whether 'live' or with film or tape, or he may obtain it from a network or some other source. He then converts the visible images and audible sounds of the program into electronic signals, [19] and broadcasts the signals at radio frequency for public reception. ”