Broadcasting (Jan - June 1940)

Television Back on Experimental Shelf FCC Ruling Demands an Industry Agreement on Standards SENTENCED to a new siege of experimental existence until "engineering opinion" can agree on transmission standards, television has been thrown for another severe loss by the FCC after it appeared to have reached the brink of full commercial operation. Constituting another in the series of jolts handed RCA, champion of unrestricted television service, the FCC by unanimous vote May 27 relegated the whole video medium to experimental limbo, with no indication as to when it might lift the ban. In a report released May 28, it scrapped rules adopted last February, which would have permitted "limited commercial operation" for a particular station class, allowing recapture of programming costs. In the process, the FCC took a few pokes at RCA for its purported efforts to "stampede" video development. statement that he advocated a free competitive television industry paralleling present-day broadcasting. [Broadcasting, April 1, April 15]. Several Congressional resolutions to investigate the Commission cropped up as a result of the television agitation, which brought down upon the FCC the heaviest deluge of newspaper criticism in its stormy existence. No Statement From RCA Up to the time. Broadcasting went to press May 29, RCA had Called Experimental While the Commission said it will continue to survey television, throwing out the hint of full rather than limited commercial operation when engineering opinion agrees on a common system, the May 28 report nevertheless labels television as "experimental". In some quarters, it was stated that the report might be regarded as "face-saving", in the light of the staggering impact of editorial and Congressional criticism of the FCC's stand on merchandising and exploitation of television receivers, particularly by RCA. The report, 29 pages long, was based on the rehearing of the television issue April 8-13, precipitated after the FCC had thrown a regulatox'y tantrum because of RCA's merchandising of television sets in the New York area, which it held would tend to freeze the art. In the carefully written report was the suggestion that the FCC would work with the industry in ironing out differences on standards. In this connection it was thought an engineering conference might soon be called with this objective. The Commission announced its intention of embarking on a policy of licensing new experimental stations in different areas but said it would "prevent monopoly and promote free competition", with a "strict limitation on the number of stations authorized to any one licensee". This latter observation again was believed aimed at RCA, which has a station in New York and seeks outlets in Washington, Philadelphia and Chicago. The fact that the action came by unanimous vote occasioned considerable surprise. Commissioner T. A. M. Craven steadfastly had opposed the former course to the FCC, which resulted in the bitter hearings in April, culminating in a brief Congressional hearing and eliciting from President Roosevelt at a press conference April 12 the made no formal statement and none was indicated. Coming as it did on the heels of the May 20 ruling granting FM full commercial operation and assigning to FM television channel No. 1 [see page 86], the FCC action stunned RCA-NBC THE RULES adopted by the Commission on Feb. 29, 1940 were intended to provide for a more rapid development of television by permitting programming experiments concurrently with necessary technical research leading to establishment of transmission standards by the Commission. Subsequent events, however, have demonstrated that commercial television broadcasting without the complete cooperation of the manufacturing industry, is irreconciliable with the objectives of further technical research and experimentation. The positions of the different companies on this whole problem cannot be viewed with total disregard of the patent interests of competing manufacturers which find expression in a desire to lock the scientific levels of the art down to a single uniform system based in whole or in part upon such patents. The functions of this Commission are not to be usurped and utilized as a means of monopolizing this important industry either through this or other devices. Competitive Angle It is essential to the program of television that there be not a mere semblance of competition, but that there be a genuine and healthy competition within an unfettered industry. The American system of broadcasting has been established by the Congress on a competitive basis. Television will be an important part of that system. Now, if ever, television is at the crossroad of monopoly or a healthy progressive competition. There can be no officials. The view was freely expressed in industry quarters that the Commission apparently went out of its way to smite RCA and that its action had the earmarks of a move to stop the company and permit others to "catch up", thereby frustrating any possible "monopoly" on RCA's part in receiving set manufacture or, through NBC, in telecasting stations. The policy pronouncement by the FCC, that it will strictly limit the number of stations authorized to any one licensee, appeared to support that view. Reaction Expected Despite the preoccupation of Congress with national defense, there were indications that more verbal fireworks would break loose on Capitol Hill. Whether newspapers again would pick up the cudgels in defense of commercial television, as opposed to the FCC, was not immediately discernable, particularly since war news monopolized most of the front pages and editorial pages. Moreover, the fact that Commissioner Craven was disposed to vote with the majority this time, in contrast to his vehement dissent from the original action citing RCA because of its advertising promotion on television, tended to minimize that probability. Meanwhile, there was revival of doubt as to the direction in which the Commission should, within its powers, attempt to guide it. The fluid state of the television art and the desirability and need for further technical research before transmission standards are prescribed by the Commission were once again clearly manifested at the Commission's most recent hearing. Engineering opinion on many of the basic problems is still divided at this time. The industry now is no less anxious to continue further engineering improvements on basic aspects of the science than it was at the time of the Commission's earlier hearing. RCA's own engineering expert, for example, testified that his preference was for a system using 507 lines and 30 frames rather than the existing RMA standard of 441 lines and 30 frames. And in fact the very basic problem of what channel width or band of frequencies television shall employ must be regarded as a question not yet closed. Contrary to the experience of other industries which have found that technical improvements were stimulated by large public use, in the television field a major portion of the industry takes the view that successful promotional activities at this time can act only as an anchor on experimental efforts to go forward. Premature crystallization of standards will, as has thus been pointedly illustrated to the Commission, remove the incentive for technical research toward higher levels of efficiency. If technical research having this goal is retarded or halted, the Commission's duty to talk that RCA might be disposed to drop its radio experimentation because of the repeated rebuffs it has received at the hands of the FCC. With a $10,000,000 investment in television and with a $2,000,000 budget appropriated for the current year to bring visual radio into practical public operation, RCA's stake in television is perhaps greater than that of all the rest of the industry combined. To Release Rules Soon In making public its report, the FCC said it shortly would release revised rules designed to carry into effect its conclusions. It added that it will promptly license applicants to provide further experimentation with the different systems on ? comparative basis. Presumably, the FCC hopes within a fortnight to take action on pending applications. Also involved in these impending moves are reassignment of existing stations which must move from television channel No. 1, now allocated to FM. Affected directly are the RCA-NBC station in New York, the Don Lee station in Los Angeles and the Zenith station in Chicago, all presently assigned to the erstwhile No, 1 channel. This shifting, obviously, will slow down experimental tele{Continued on pagre 88) fix transmission standards with due regard for considerations of public interest will have been, for all practical purposes, nullified. No Revenue Allowed It is, therefore, the conclusion of the Commission that in order to assure to the public a television system which is the product of comparative research on known possibilities, standards of transmission should not now be set. It has further been decided that there should be no commercial broadcasting with its deterring effects upon experimentation until such time as the probabilities of basic research have been fairly explored. The Commission agrees with the industry that the earlier plan for arriving at commercial operations by an intermediate half step of partial commercialization to be taken next September cannot be relied upon to serve a useful purpose. The provisions in the rules for Class II stations will be eliminated. As soon as the engineering opinion of the industry is prepared to approve any one of the competing systems of broadcasting as the standard system the Commission will consider the authoi'ization of full commercialization. That a single uniform system of television broadcasting is essential — so far as basic standards are concerned — must also be amply clear. The public should not be inflicted with a hodge podge of different television broadcasting and receiving systems. It may be expected that indus{Continued on page 96) Text of Conclusions in FCC Television Report . . . BROADCASTING • Broadcast Advertising June I, 1940 • Page 17