Sponsor (Oct-Dec 1964)

Record Details:

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FXIIDA.V AT 5 NCTA Is Silent on Ford Presidency, Loud on ABC's CATV Recommendations Washington — The National Community Television Assn. was very voluble last week on why the FCC should not assume jurisdiction and limit CATV activities, particularly as proposed in recent comment by the ABC network. The NCTA headquarters here was v'holly uncommunicative on the wellleaked story of its alleged intent to hire FCC commissioner Frederick Ford to be its next president at $50,000 a year. Commissioner Ford was just as uncommunicative, but speculation as to his successor at the FCC was heating up all around town, from the White House to the commission's parent committees on the Hill. Commissioner Ford is in a rather delicate situation in view of his fairly recent reappointment by the President, and a nervous staffer in his office responded 10 queries about the NCTA post with They're all rumors — they're just ■umors." The ABC recommendations for :ATV regulation apparently irked the :ommunity antenna system associaion more than any other broadcaster )r network proposals. The ABC netvork has urged the FCC to assume uthority over CATV (commissioner ;CC Chairman Probes nto Payola Violations Washington, D.C. — The FCC has nnounced an inquiry into payola and lugola violations of its 1960 antiayola amendment to Sec. 317 iponsorship identification) of the roadcast statute. The inquiry, which has grown out f complaints to the commission, will Dt be a full-dress public operation, inslving open hearings, unless later de:lopments warrant it. Instead, the lairman has been delegated to look to complaints. He has been given e power to subpoena witnesses and I necessary records. The FCC's announcement does not ention any specific payola cases, but idoubtedly will look into the charges ade against a Los Angeles radio stam and West Coast record companies, rrently the subject of a lawsuit on e coast. Lee has recently urged the same thing), limit its zones of operation to a station's Grade B (secondary) area, and set up rules for anything beyond. ABC wanted the commission to recommend broadcaster preference when CATV franchises were up for sale. (Sponsor, Oct. 19, 1964). The NCTA, Jerrold Electronics and a number of individual antenna system owners told the FCC last week that the commission did not have jurisdiction to regulate CATV and has said so itself on three earlier occasions. CATV people insist that FCC go to Congress for the authority, and wait for conclusion of talks between NAB and CATVers before rushing into rulemaking that might go counter to any compromise worked out between the two industries. CATV owners say that even if FCC decides it does have the jurisdiction. there is really no need for general rulemaking. NCTA is scornful of ABC's "conjectural forecasts" of injury to free tv by community antenna airing of multi-channel programing from outside the market. CATV also says it helps, not hinders, UHF development and could do more if UHF permits, otherwise unfeasible, were given to established CATVers who could bolster a new UHF station with outside programing. About the pay tv angle — community antenna people admit it "may be" technically possible for CATV and pay tv to combine but resultant operation would be all pay tv. In any case, CATVers claim they thrive on extension of free tv programing and would not gain from pay-tv expansion. Still — even if pay tv does become widespread, CATV stoutly proclaims faith in free tv's ability to compete with pay tv's offers for talent. Antennavision Service Co. argued along these lines and said it had much more faith than ABC in free television's ability to hold onto its programing talent. Film^ Syndication Firms' Earnings Boom New York — With Metro-Goldwyn-Mayer moving into the black after last year's loss, four major film and tv syndication firms show healthy profit-and-loss figures on their ledgers. In addition to MOM, these include United Artists, Filmways and Screen Gems. Metro-Goldwyn Mayer Sporting net earnings of $7,390,000 for the fiscal year ending Aug. 31, MGM has made a financial comeback after last year's loss of more than $17 million. Net income equaled $2.83 per share of common stock. Gross revenues for fiscal 1964 totaled $171,360,000 as compared with $136,216,000 the previous year. United Artists United Artists Corp., leading tv syndicator, is chalking up its greatest year, financially, in history. Net earnings of $7,005,000 reported for the first nine months of 1964 already exceeds by 50 percent the net earnings for any previous full year. The $7,005,000 figure, announced by chairman of the board Robert S. Benjamin and president Arthur B. Krim, contrasts with last year's first nine month net earnings of $1,610,000. The record $7,005,000 was registered after provision for income taxes of $5,940,000. Filmways Filmways, Inc., reported a 167 percent jump in its net earnings in the fiscal year ended Aug. 31, 1964, over the previous year. Net income rose to $327,434 from the previous year's total of $122,408, while gross revenue rose to $13,681,630 from $10,763,767. In television, Filmways has four network shows going for it: The Beverly Hillbillies, Petticoat Junction and Mr. Ed, all on CBS, and The Addains Family, introduced this season on ABC. Currently, additional television programing is being developed, Filmways said. Screen Gems First quarter profits at Screen Gems, Inc., hit a record high, with net income after taxes totaling $577, 000, an increase of 12 percent over the corresponding quarter of 1963 when earnings were $515,000. This year's first quarter income is equal to $.18 per share on 3,173,000 shares of common stock. November 30, 1964 CONTINUED ON NEXT PAGE