[78-L] World Broadcasting

[Michael Biel]

This explains why I had not thought of CBS or Columbia having any
relationship with World Broadcasting System like Decca later had.  I had
not done detailed research on this era because it came after the range
of my Ph.D. dissertation on this subject, The Making and Use of
Recordings in Broadcasting Before 1936.  The talks ended soon after they
began.  Remember, the radio networks were the arch-enemies of the
recorded broadcast syndicators like World, and it might have soon became
evident to Percy Deutsche that CBS might be buying World to kill it.  My
dissertation discusses in detail how NBC had made contractual deals with
its "sister" company RCA Victor in the early 30a to keep Victor out of
the transcription business by promising it a minimum of $25,000 per year
of transcription business, but when they were paid the first $25K for
doing nothing, Victor backed out and DID go into the transcription
business.  Then NBC arranged for the ETs to air on NBC affiliated with
contracts that required the stations to drop the ETs if the network
wanted to air live programs during the same time periods.  These deals
were eventually were part of the evidence that NBC was monopolistic and
forced the sale of NBC Blue to become eventually ABC.  I bet World just
missed getting screwed by Billy Paley and got out in time. It would have
been a marriage made in hell.  Yes, Columbia Records did have a
transcription business of sorts in the 40s, but mostly as a recording
service like ARC Columbia had in the early to mid-30s (LOVE those
16-inch Royal Blue pressings!)

Decca, of course, had had a short-lived ET business around 1936 with
some wonderful programs that included Frank Crumit, Bunny Berigan, and
others (the Norge programs, for example) and Brunswick had been kept
afloat largely thru their National Radio Advertising Co. business in
28-32, and had some ETs under their own name in 33-34, including some
nifty 16-inch Flexo pressings.  Their relationship with World in the 40s
was good for both Decca/Brunswick and World.  

Mike Biel  mbiel at mbiel.com 

  

-------- Original Message --------
Subject: [78-L] World Broadcasting
From: Geoffrey Wheeler <dialjazz at verizon.net>

New York Times, Friday, February 17, 1939
The Columbia Broadcasting System has signed contracts under which the 
company may acquire the World Broadcasting System, manufacturers of 
electrical transcriptions, it was announced yesterday (Thursday) by 
William S. Paley, Columbia president. Contingent on the working out of 
certain corollary agreements, it is contemplated that Columbia will 
acquire control from P. L. Deutsche, president of the transcription 
company, who will continue in the same capacity. No changes in the 
World organization are considered, it was added. “When and if the 
acquisition is completed,” Mr. Paley said, “Columbia will have
extended 
still further its service to radio advertisers, and at the same time 
will be able, through the American Record Corporation, purchased in 
December, to offer records in the home field recorded on the highest 
quality equipment.” Mr. Paley added that, although the recording 
companies would use the same studios and equipment, they would be 
operated as separate subsidiaries.

On April 26, 1939, Columbia Broadcasting System terminated negotiations 
for the purchase of the World Broadcasting System and as a result will 
establish a complete transcription and general recording service for 
its subsidiary, American Record Corporation, William S. Paley, 
president of Columbia, announced yesterday (Tuesday). The American 
Record Corp. will install its own studios and recording and processing 
equipment. Mr. Paley said that study is being given to the precise form 
the American Record Corp. transcription activities will take. Plans and 
policies will be announced with a few months.
Geoffrey Wheeler