A Bolt from the Blue

Radio Record, Volume V, Issue 21, 4 December 1931, Page 1

A Bolt from the Blue

Gramophone Records Banned from the Aur

HE text of the intimation ;. conveyed under registered -cover to dealers:in records in New Zealand is as follows :- 4 \ ¥ With a view to exercising control over the use of our records for the purpose of broadcasting and public performance, we are notifying all broadcasting stations that they may no longer broadcast our records without our written permission. As from this date, all records now and hereafter to be manufactured and issue from the factory will bear a label on ‘which it is stated the record may not be used for radio broadcasting-nor publicly performed, and we desire you to take note of this as being a definite condition under which we will from this date supply you with records, and a definite condition unde which you may sell those records to any person. a In connection with:the supply of records to broadcasting stations, please note that if you have in the past done any business with the broadcasting stations, that this is to be discontinued, and no records . are to be supplied by you to any broadcasting station without our written permission. These various restrictions are being gaiprced in your interests and in the in‘crests of: the record industry generally, and as it is of great importance that they be strictly adhered to, I am sure I have only to put the matter before you to be assured of your complete and whole-hearted cc- _ operation.

_ Contact with the YA stations reveals that the Radio Broadcasting Company is in the meantime carrying on as usual, although negotiations have been opened up with the gramophone companies concerned. The Radio Broadcasting Company, it may be said, has always.endeavoured to work harmoniously with the gramophone companies, and has closely observed any bans or requests made by them relative to the use or otherwise of certain records. \ 1’ the past the main dealings in connection x with copyright and the use of musical matter (recorded and otherwise) have been with the Australian Performing Right Association. A royalty amounting to 5 per cent. of the total receipts of the Radio Broadcasting Company is paid to the Australian Performing Right Association for. the copyrights claimed to be held bu, it. When broadcasting was first instituted in New Zea-

land the gramophone companies in the main first gladly and freely afforded facilities for the use of gramophone records. At a later date when the number of "B" class stations showed an increase, and consequently the use made of records expanded considerably, the free supply of records was withdrawn, and the Radio Broadcasting Company (and others) were compelled to purchase such records as were required for use. In consequence, the Radio Broadcasting Company has built up a very fine and comprehensive library of records, from which all main stations draw supplies as required. Now it is apparent an effort is being made by the gramophone companies to prevent the use of any records save with the prior consent of the manufacturers thereof.

HIS action inevitably precipates a major crisis in broadcasting circles. It may be asked why the gramophone companies, which are world-wide organisations supplying records to all the markets of the world, have instituted this action first in Australia and New Zealand, and not in America or the Continent of Europe, where the number of broadcasting stations: is much greater than in the Antipodes. The answer to that query is that Australia and New Zealand suffer from a paucity of first-class artists, and need to place much greater reliance upon recorded music than do the stations of either Europe or America. With the notable increase in the number of broadcast stations in both

Australia and New Zealand that has taken place in tne last two OT: three years, heavy demands have been made upon gramophone records. As listeners will be aware, broadly speaking, most ‘"B" class stations rely entirely upon gramophone records for their musical fare. The outcome has been that popular numbers, largely in request by listeners, have been in some cases worn to death, with the result that inevitably the sale of individual records to the public has been restricted. This development must be recognised, and consequently a certain amount of sympathy felt by unbiassed persons for the gramophone companies who, after incurring the risk of producing popular "hits" and paying recording fees to high-class artists, may have been deprived of the reward of their enterprise by undue use of such popular records by broadcasting stations. As against that angle, it can, of course, be claimed that the judicious use of high-class records by broadcasting (Concluded on page 2.),

A BOLT from the blue has descended upon radio broadcasting stations throughout New Zealand. Both "A" and "B" class stations are equally affected. The shock arrived in the form of a registered communication from the Gramophone Record Companies trading in the Dominion to the effect that all broadcasting stations should forthwith cease to use gramophone records unless they had the written permission of the gramophone companies to do so; failing which an iniwnction would be immediately applied for and damages claimed. In the meantime the YA stations and most of the "B" stations are carrying on as before, although negotiations have been opened up with the gramophone companies concerned. HE same situation obtains in Australia. Cabled information was published a week ago to the effect that the Australian companies had received the same _ ulltimatum as that given New Zealand stations. A conference, it was reported, had been arranged between the gramonhone companies and the main stations. This was held in Sydney last week, but the outcome has not been made, public up to the time of writing.

‘A Bolt from the Blue ' a q (Continued from page 1.) stations has resulted in a wider appreciation of such records by the public, with, it has been claimed by some, & beneficial reaction into the sales of records. Both points of view command attention. . Position of "B" Class Stations, UNDER the license extended to it, ; the Radio Broadcasting Company of New Zealand has been restricted to the use of 25 per cent. of its time in recorded music. No such restrictions have applied to B class stations, many of which may be said to have devoted 100 per cent. of their time to gramophone records. "B" class stations are therefore closely affected by the situation. Opportunity was taken by the "Radio Record" to secure from Mr. R. H. Nimmo his viewpoint on the situation. Mr. Nimmo said that naturally the intimation was a severe blow to "B" class stations, which were at present carrying on tlieir enterprises under difficulties from the financial point of view, but in the confident expectation that, when the Radio Board to be constituted began to function, they would be placed in a better position. Meantime, they were suffering financial loss in providing a service that was greatly appreciated by the public.

, In the first place, Mr. Nimmo said he ,would like to recognise the general osition of the gramophone companies. hile appreciating that records used With discretion over the air constituted one of the finest mediums for the record trade, it had to be freely admitted that, if records were not used with discretion, but were constantly repedted in the case of popular selling numbers, then that action would be detrimental to the sale of records. In the case of the station in which he was concerned-2ZW-that position had been carefully avoided, as they were jealous to guard the welfare of the record trade. His own firm carried a large stock of records, so that it would be’ detrimental to their own terests to overdo the broadcasting of popular numbers to the extent of affecting sales. If the action of the gramophone companies had been prompted by the ‘position indicated, then he recognised it was desirable in the interests of the trade generally that some form of control of broadcasting should be in Stituted.. The position, however, required careful handling; otherwise the goodwill of the public might be sacrificed and a position develop which would have far-reaching consequences. The action of the gramophone com. panies might be said to constitute a challenge to the general public, and it could be taken for granted that the New Zealand Government would acquaint itself with the position and afford protection from exploitation of the public by overseas vested interests. The Government had already shown its preparedness to pass legislation of a ‘temporary character to prevent . the

public suffering from any stampeded action. This obtained in the case of the patent position some year or two back in relation to radio apparatus, The Revenue Position. "THE position required very close investigation," said Mr. Nimmo. In addition to the payment by the gramophone companies to the owviers of the copyright item, tribute was paid to the Australian Performing Rights Association by the broadcasting stations. The position now was, what further payments or conditions were to be imposed? The question would probably, in the upshot, involve international law. In the meantime the gramophone companies had not indicated by what right they sought to preyent legitimate use of their records after they had been sold and became private property. Disciplinary action, of course, might be taken by the gramophone companies in future against dealers who sold records to broadcasting companies that subsequently broadcast those records on the air. If, however, such dealers were barred supplies, then it would become a question of restriction of trade, which would invite Government investigation. "In the meantime the position was obviously one requiring full investigation and negotiation, and he would urge that "B" class stations-many of whon throughout the Dominion had. been in touch with him on the situationwould. exercise patience and take no precipitate action. He had noticed a Press intimation that legal advice was being sought in one quarter, but in his view the position did not yet warrant action of that nature." Position of the Listener.

"THE position as it has developed materially affects the listening public. While due regard may be extended to the interests of the gramophone companies that are affected, the interests of the public as a whole must also be protected. Broadcasting of music and information has reached such a stage as to constitute a definite industry and public service. Unduly restrictive action by manufacturers of records will ultimately force protective organisation and concerted reply from the broadcasting authorities. Britain and Europe have an adequate supply of artistic talent. The financial strength of the broadcasting authorities is undoubted. it would be a relatively simple matter for concerted action to be. taken by the broadcasting authorities to establish a gramophone recording company under their own control. Such a company could then record the performances of notable artists under contract with the broadcasting authorities, make those records available to broadcasting authorities elsewhere, and also, if need arose, supply them to the public in competition with the existing gramophone companies. From the point of view of the public, | therefore, while the situation is serious, no real alarm need be felt that it is incapable of solution. Every enterpris- ing nerson will be prepared to pay fair tribute, in the first place, to artistic talent in the form of royalties, and secondly, to the commercial enterprise that makes that talent available to the general public. Future developments will be awaited with keen interest. Meantime broadcasting stations in New Zealand and Australia are carrying on pending negotiations that are afoot.