Sponsor (Oct-Dec 1964)

40, vies. era Pay Tv Would Siphon Free Fare, Says Texas Station President Los Angeles — Dubbing pay television a very "real and immediate" threat, Jack Harris, president of KPRC Houston, Tex., said that on any representative evening "about 75 percent of the more than 52 million television homes in America are watching television — free." "And yet," he added, "as few as two or three million homes across the country equipped for pay television could drastically alter what the other fifty million may see." In remarks prior to a pay tv debate before the Academy of Television Arts and Sciences, Harris declared: "While a few million pay tv homes would not really dent commercial television's huge audiences, it would affect what those audiences were permitted to see. I believe three million paying customers would siphon off from the free screen a great deal of today's fine entertainment." Five percent of the public could disenfranchise the other 95 percent. Harris argued. "For that 95 percent, indeed, the freeway of entertainment on which they have been traveling would become a toll road." Citing a case in point, Harris said, "Just eight days from now NBC will begin telecasting the World Series. This will cost advertisers $3.5 million in rights, plus production, time and cable. It will cost the home viewer only the twist of a dial." Harris continued: "But, suppose there were already three million sets across the country wired for pay tv. If a Dodger game on pay tv sells for $1.50 per home, it's safe to assume a World Series game would go for no less than $3. And, if we assumed half of the three million pay tv set owners were to buy each game of the series, that would net the operators of pay tv some $4.5 million per game. In a seven game series, that would come to more than $31 million, and even a four game series would net $18 million. "It's just not possible to sell enough razor blades to meet that kind of competition," he said. Harris conceded that his is probably the most spectacular instance but he insisted it was only one example. "With five percent of Amercan homes equipped for pay tv, the pay tv promoters would outbid free television for anything we had, that we wanted." In conclusion, Harris said, "I do not think the operators of television stations or networks stand in financial jeopardy from pay tv. If it should grow to such national proportions, the losers in my opinion will be the American people." Weaver Pleads Pay Tv Case in 'Atlantic Monthly' New York — Whatever problems Sylvester L. (Pat) Weaver has been having in his efforts to establish a going pay television operation in California — and they have been many — lack of publicity and public forums has not been one of them. His latest bid for the public ear is the Atlantic Monthly. Arguing that "commercial radio and television have been predicated on the sale of advertising, and consequently built their business against a bulwark of criteria dictated by the needs of the sellers, not the needs of the buyers," Weaver laid heavy emphasis on pay tv's ability to supply cultural and educational programing. "Aesthetically, advertising is difficult to handle in combination with the more rewarding arts," he said, "and interruptions by commercials are at best upsetting and at worst sickening." Weaver Sees Pay Tv as Nation's Great New Industry Chicago — Sylvester L. (Pat) Weaver, Jr., president of Subscription Television, Inc., last week took his case for pay tv to Chicago, predicting that it is destined to become the great industry of our country." "Surveys conducted by Stanford Research Institute," Weaver said, "indicate that the industry's revenue is expected to approach $2 billion annually, that subscribing households may number 15 million, reaching more than 50 million people." "It is estimated that approximately $2 billion worth of equipment alone will be necessary to serve these families," Weaver continued in his talk before the Chicago Economic Club. "Then when you think what this technically superior cable service would do for the sales of color television receivers, you begin to realize what a business boom subscription television can create." Citing still another survey. Weaver said that Subscription Television, Inc., his own company, has the potential effect for generating a $1.9 million impact on the California economy. "This is representative of support for 237,000 new jobs and, based on the current ratio of population to employment in California, these new employment opportunities can support a population gain of 650,000 persons." Weaver added: "Just think what this will mean in the way of employment when subscription television begins to spread across the country." Weaver said that "just as motion pictures, radio and television were the major communications developments during the past 50 years, subscription television will revolutionize our economic, cultural and social lives as the industry brings the wall screen, three dimensional and cartridge delivery of the subscriber's choice of programing via tape recordings which may be kept and replayed, or erased at will." The pay tv spokesman also had a word on the initiative referendum on November's ballot aimed at oudawing subscription television. "Polls indicate we will defeat this vicious attempt of one business to have a competitor outlawed. But, should we lose, we will go all the way to the Supreme Court. . . " NiOl! October 5, 1964 21