Television digest with electronic reports (Jan-Dec 1952)

6 NEW PHASE in DuMont’s strategy to rid itself of stockholder Paramount Pictures (about 25%) became evident in this fourth week of FCC hearing — and case is still long way from consideration of ABC-United Paramount Theatres merger, subject of most interest to industry. It’s apparent that DuMont counsel William Roberts is no longer trying merely to assure Commission that Paramount doesn’t control DuMont. He’s now bent on convincing FCC that it should force Paramount to divest itself of DuMont stock because of Paramount’s anti-trust history and its interest in developments presumably competitive to TV stations — such as subscription TV and theatre TV — as well as in movie production. Hearing examiner Leo Resnick gave newsmen this estimate of time case will run: more testimony, with short recesses, until April 1; then 40-60 days for proposed findings; then at least 3 months, or until about Sept. 1, for his initial decision. After exceptions and oral argument, final FCC decision could come near year’s end. Slowness of hearing is attributable to fact Resnick is extremely liberal in permitting extensive testimony and cross-examination, feeling case is truly basic and precedent-setting in determining future movie-TV relationships. Most of week’s testimony was concerned with Paramount’s long anti-trust case. President Barney Balaban, v.p. Paul Raibourn and director Edwin Weisl spent most time buttressing Balaban’s previous testimony (Vol. 8:6) : how now-outlawed movie practices of block-booking, pooling, etc. grew in normal competitive scheme of things but were dropped when Supreme Court ruled them illegal. Commission counsel probed witnesses in attempt to determine whether Paramount’s officers might be inclined to institute similar practices in TV. Paramount’s reluctance to furnish movies for Zenith’s Phonevision tests was also scrutinized. Correspondence between Zenith and Balaban showed latter didn’t WESTINGHOUSE plucked highly-prized Pittsburgh market, its home-town, for its presidential campaign coverage this week — but at heavy cost. Deal involved purchase of 4-station DuMont network — DuMont’s WABD, New York, WTTG, Washington and WDTV, Pittsburgh, and Chicago Tribune’s WGN-TV. DuMont, which was left without any political coverage plans when its joint venture with Life Magazine fell through (Vol. 8:4), apparently will pick up the Westinghouse telecast from CBS (Vol. 7:52). DuMont’s announced plans are identical with those of CBS, and include coverage of both political conventions in July, election night returns and 13 weekly “get-out-thevote” programs. So ended the spirited bidding for Pittsburgh’s only station, DuMont-owned WDTV, by rival networks and sponsors — CBS for Westinghouse, NBC for Philco, ABC for Admiral. New York, Washington and Chicago each will have identical Westinghouse coverage on 2 channels. Meanwhile, networks continued battling for the onestation markets that were left, each offering plenty of inducements. All 3 networks now offer plenty of time for local news and commercials in their political schedules. And at least one sponsor reportedly is dangling bait of cash bonuses to stations in important markets. But one source says all major one-station markets are now sewed up — all of them by NBC-Philco except Pittsburgh, Bloomington (WTTV), Kalamazoo (WKZO-TV), Charlotte (WBTV), Greensboro (WFMY-TV), Nashville (WSM-TV). Edward Lamb, owner of WICU, Erie, and WTVN, Columbus, also of AMs WTOD, Toledo, and WHOO, Orlando, Fla., has purchased 5-kw WIKK, Erie, for reported $150,000, will tie it up with his Erie Dispatch and WICU. agree to provide films until Justice Dept, became interested (see below). TV has very little effect on top movies, Raibourn testified, but he reported that boxoffice settles down to 20 %30% decrease in TV-saturated areas after TV novelty wears off. He estimated that average family spends $30 a year on movies, but $100-$200 on TV — including cost of set, installation, service, etc. Only $15-$20 of TV bill goes for entertainment, whereas much larger percentage should go directly to entertainment, he said. Sessions became most acrimonious to date, with Roberts and Paramount counsel Paul Porter frequently snapping at each other. * * * * Heated correspondence between Zenith president E. F. McDonald Jr. and Paramount president Barney Balaban in 1950, concerning McDonald’s request for movies for Phonevision test (Vol. 7:50), was entei’ed in record of Paramount hearing this week. Some choice excerpts: “I believe your test is being conducted under highly abnormal and unrealistic circumstances accentuated by the artificial light of intense publicity [and it] can have no value as a practical test,” wrote Balaban. To which McDonald replied: “I am surprised to see you decide to re main with the rest of the members of the Motion Picture Assn, of America in refusing to rent us films for this test.” Balaban: “You attempted to establish the false assumption that Paramount is supporting some ‘group’ in refusing to rent pictures for your ‘test’ and is acting in concert with other members of MPAA. This I deny flatly.” McDonald: “We both cannot be right. I don’t think it will take too long to ascertain which one of us is going to give our advisers hell.” Balaban, after some correspondence with Dept, of Justice: “We have decided to cooperate with the FCC by making available to you a fair and representative sample of our pictures ...” IT’S A “PUZZLEMENT”— the NBC-TV 7-9 a.m. show Today, with Dave Garroway, now going into sixth week. Station commercial “returns” now range from $5000 a week worth of local cut-ins reportedly sold by NBC’s New York WNBT to scattered local spots by some other affiliates to zero on such a top-hole station as WWJTV, Detroit. Of the 30 affiliates carrying it, 4 more have replied to our questionnaire since we last reported on what 19 stations think of such early-morning telecasting (Vol. 8:5). To a man, the managers are enthusiastic or at least favorably disposed — but this reaction from WWJ-TV’s Wm. Walbridge speaks volumes: “We have not sold anything in Today. The advertiser’s attitude seems to be wait-&-see [but] the public likes it! Our letters are almost unanimous in praise ... No measurements of the audience are available, but the morning it was delayed here our switchboard became clogged after 268 calls . . . National timebuyers react the same way — reluctant to make the first move. I’m certain that if Today gets one big scoop, an on-the-scene broadcast of a major news event, to demonsti'ate its potential, then the cool boys will quickly turn hot. “There will be criticism of the vague format or patchwork quality of presentation. Crosby and others have ridiculed the show. They may live to eat their words if NBC continues to have the courage and the cash to keep it going. “When we prove good audience, the format will adjust to take care of any lack of adaptability it might have commercially. It’s a good deal for local stations. Any 2 hours of programming that gives us 10 one-minute spots, 10 twenty-second commercials and 20 five-minute newscasts (local) per week certainly gives us all the opportunity for sales that we will need.”