Television digest with electronic reports (Jan-Dec 1959)

2 They still feel that pay TV will fail in any test, but if by some happenstance it doesn’t — if toll TV is truly inevitable — they might just as well be in on it. Even Rep. Harris (D-Ark.), staunch payTV opponent, actually opened door to tightly limited "technical tests" of broadcast fee-TV systems — if anyone wants to apply — in his strongly worded anti-payTV resolution introduced this week (p. 7). One big difference between his new resolution and the "sense of the Committee" resolution by his House Commerce Committee last year (Vol. 14:6) is inclusion of a provision permitting tests if FCC authorizes them — whereas last year the Conanittee specifically demanded that FCC refrain from conducting tests. Though Commission has agreed not to approve any pay-TV test applications until end of this Congress session ^probably Aug.), it plans to process any it receives so they'll be ready for granting after period is over. FCC UPHOLDS OPTION-TIME IN 4-3 DECISION: The expected 4-5 vote in favor of option-time was recorded by FCC this week, as it approved findings to be submitted to Justice Dept. (Vol. 15:2) — which is then to render its opinion on legality of the network practice. It seems to be foregone conclusion as to what Justice will say, for its hierarchy reiterated to us as recently as last week its conclusion that option-time is a violation of anti-trust laws. Findings weren't released, but it's understood that majority comprised Comrs. Doerfer, Lee, Craven & Cross. What happens now? It's likely that FCC will stand pat, insist that benefits of option-time are so great that the practice is not illegal when measured against the broad scale of "public interest." It will then be up to some disappointed element of industry to go to Court of Appeals and challenge Commission's decision. Justice Dept, wouldn't cry about that, believes it would find sympathetic ear in Court of Appeals. On other hand, if networks have to go to court, they'll be happy to go armed with FCC's pro-option-time findings. Networks are unhappy about Justice's inflexibility on the sub j ect , but they insist they can't offer to compromise by cutting option-time, in whole or in part. Spokesmen for all 3 tell us they stand by their testimony before FCC. "We repeat our position," said one, adding wryly; "Rather, we cling to it desperately." The group of affiliates which sought conference with Attorney General Rogers and/or top anti-trust officials Victor Hansen & Robert Bicks (Vol. 15:2) has called it off — both sides apparently deciding it would be awkward or fruitless. Option-time is "reasonably necessary" to preserve networks, or quality networking, FCC says in its findings. Without option-time, it claims, networks' sales & program planning would suffer, produce decline in program quality. The findings do acknowledge that option-time works to deny non-network program producers, station reps and spot advertisers access to best station hours. However, FCC maintains that quality network programming is so important that it shouldn't be jeopardized. Networks must have option-time, it asserts, to provide a national advertising medium. Though FCC hasn't revealed its next subject in network study, it's linderstood that Feb. 2 agenda calls for discussion of multiple ownership of stations. FCC's Network Study Staff has urged that: (1) Long-range goal be one-to-a-customer. (2) Steps be taken now to limit licensees to ownership of no more than 3 vhf's in top 25 markets. (3) In granting new CPs & renewals, adverse "presumptions" be made against absentee and multiple owners. (4) Anyone be permitted to bid for a station, in a hearing, when deal is made to sell station — with all sales to be cash. Another subject scheduled for Commission discussion, reportedly Feb. 6, is the charge by some independent program producers that networks demand a piece of their shows before they'll carry them. Networks have denied allegations vigorously. Complainants have been reluctant to step forward publicly, and Commission hasn't conducted any hearing to air the complaints. . * * * * Trial balloon went up early this week, and by week's end it came down, at least temporarily deflated. It was idea of a 3-network "association" or "joint