Weekly television digest (Jan-Dec 1963)

• • • WEEKLY NAB LIBBARy Television with The authoritative service for executives in all branches of the television arts & industries AUGUST 19, 1963 NEW SERIES VOL. 3, No. 33 SUMMARY-INDEX OF WEEK'S NEWS Consumer Electronics CONGRESS LOOSENING ETV PURSESTRINGS, may compromise on $6 million for station construction, of the $32 million authorized for 5 years (p. 1 ). NEW ATTEMPT AT PAY-TV ON WEST COAST: Subscription TV Inc. being formed by Lear-Siegler, Reuben H. Donnelley Corp. , veteran promoter Matty Fox, others, plans to televise Giants & Dodgers games in 1964 (p. 2 ). NIELSEN SAYS ’YES'; HARRIS STAFF ACTIVITY: Major TV rater endorses NAB reform plan, sends application for accreditation; Harris Subcommittee plans to publish edited 4 -volume hearings transcript in addition to report (p.2 ). CATV— INDUSTRY IN TRANSITION— ready for some federal regulation as telecasters & theatermen continue to move in. But some seek congressional help to keep FCC from getting 'too tough' (p.3 ). DAVID BLANK— CBS'S FREE WHEELING economistfeatured in "Business Week", sees TV revenues rising 9% aiuiually in next decade (p. 4 ). Broadcast TV SALES UP & CLIMBING AT MIDYEAR: Distributor volume hits record 541, 810 b&w TVs in June, pushes year-to-date totals to 2, 956, 808 vs. 2, 724, 038 a year earlier, EIA figures show; radio sales lag (p. 5). SET MAKERS POST SOLID FIRST-HALF GAINS: Our analysis of 15 TV-radio manufacturers shows 12 increased sales, 10 boosted earnings, and combined volume & profits were well ahead of 1962' s first-half pace (p. 6). QUALITY STABILIZATION— ANOTHER GO-ROUND: Senate Commerce Subcommittee opens 3 -day hearings today on S-774 legislation amid growing industry belief that some form of QS law will pass House this year (p. 7). RCA DROPS COLOR PRICE: Makes first reduction in base price in 7 years, with 21-in. black metal table model at $449.95 (p. 9). CBS'S RECORD PACE: Sales & earnings climb to record levels both in first half & June quarter. First-half profits jump nearly $5 million to $19.4 million on $20 million sales gain to $273. 3 million (p. 9). CONGRESS LOOSENING ETV PURSESTRINGS: Genuine shot in arm for ETV is finally expected from Congress, which last year voted measly $1. 5 million for station construction. Senate has just voted $7 million, House $5 million, for year beginning July 1, 1963— of the $32 million to be spent over 5year period. Senate-House conferees frequently compromise, so $6 million may well be final figure. With few choice commercial vhf channels in prospect, much attention is drawn to ETV station potential. To suppliers of station equipment & services, this is nothing to sneeze at. NETRC estimates that the 79 existing ETV stations represent a $50 million investment, $20 million annual operating costs — covering 34 states with 104 million people in their service areas. Dr. John Bystrom, HEW's ETV chief, tells us that surveys indicate some 80 station starts are likely by Jan. 1, 1965, that states plan 125-150 more within 2 years thereafter. Costs of station vary enormously, of course, but Dr. Bystrom estimates average cost of construe tion at $350, 000, annual operating about half that. William Harley, pres, of NAEB, says his organization estimates there will be 175-200 stations by 1968. Equipment makers don't noise their estimates around. One thing they do say, however, is that a lot of people are talking blue sky when they speak of "thousands" of stations within 5-10 years. Intriguing Samoan ETV project, for which Congress has appropriated special $1. 75 million fund, is expected to begin telecasts in Feb. NAEB is supervising program, designed to lift Samoa's educational standards through 3 instructional channels. Smith Electronics handled design engineering. Pro ject includes receivers, studios, microwave, translators, etc. NAEB is overseeing hiring & training of station personnel & teachers.