Broadcasting (Oct - Dec 1950)

Record Details:

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fllM PRODUCIRS ® FILM PRODUCERS, that mushrooming segment of a giant infant television industry, envision 1951 as another year in which uninterrupted business could increase anywhere from 10% to 300%. However, on the other side of the ledger, some firms surveyed by Broadcasting • Telecasting, point to those two factors : (1) Operational costs seem destined to swing upwards. (2) A worsening of the world crisis could complicate the outlook for these firms. Jerry Fairbanks, president, Jerry Fairbanks, Inc., Hollywood, believes that the television film industry which has heretofore played only a minor role in the tremendous new medium development, is slated to make great strides in 1951. Film is finally being recognized as the "one sure way of achieving professional perfection in video advertising and in program presentation," he said. "A doubling of today's output is indicated and we'll not be greatly surprised if we are producing a year from now triple the present product," he continued. Because of higher wages and material costs, Mr. Fairbanks, anticipated a slight increase in operational costs. As for general business for 1951, Mr. Fairbanks estimated it will be about the same as for 1950. Sees Business Growth Stephen Bosustow, president, United Productions of America, Burbank, Calif., declared television is more likely to show an increase in revenue than radio. The latter will decrease about 10%, he estimates. He anticipates an increase in revenue for his firm of about 25%, through sale of films for the Army and Navy for educational and training purposes as well as for entertainment. "The war in Korea, accompanied by the general demand for greater defense effort, will stimulate general business activity," according to Mr. Bosustow. "Of course, we, like a lot of other people, believe that television is the big thing for 1951," said J. A. Thomas, president of Telefilm, Inc., Hollywood. "We do not expect a landslide, but we do expect a healthy growth over 1950," he continued. However, the gathering war clouds and what effect they will have on the nation's economy, make predictions too risky, he said. Mr. Thomas does anticipate an increase in radio over 1950 with about a 25% increase in his own business and an increase in operating expenses of about 15%. "General business prospects for 1951 will be excellent, exceeded only by the prospects for TV in that yeai\" This is the optimistic viewpoint expressed by Louis D. Snader, Snader Telescriptions Corp., Beverly Hills, Calif. Mr. Snader sees increased revenue for Page 62 • December 25, 1950 television amounting to 90%, with radio falling off about 10%. Mr. Snader estimates an increase of 150% in operating expenses for the coming year. "Television will prove, with the extension of markets and the passing of time, to be the cheapest possible method of sales promotion . . . 1951 will be a big, big year for television," is Mr. Snader's forecast. Gifford Phillips, president of the TEEVEE Co., Hollywood, in response to Broadcasting • Telecasting queries said : "The big question in the radioTV picture this year is, of course, the development of the present war crises. If the crisis worsens, or if war comes there will be general levelling off of the rapid rise in business revenue and television development, because television Upswing in 1951 programs are very complicated and very expensive to develop, and production and allotment of scarce materials will prevent further expansion of the existing television market which could defray these expenses. The AM radio field will receive quite a 'shot in the arm' by such a development and will start rising rapidly, as in the last war." Mr. Phillips anticipates about a 50% increase in revenue over last year's business for TEEVEE Co. He feels that the answer to better programming for television is the use of film — "a good film program can far surpass the most elaborate live program." He expects his increase in revenue to stem from the national sponsor turning to Hollywood for better programs. Mr. Phillips, like others (Continued on page 73) Educational TV NAB's petition to participate in the further educational TV hearing Jan. 15 was granted by FCC last week. NAB told the Commission it was taken by surprise by some of the testimony presented during the earlier hearing relating to reservation of VHF as well as the UHF channels specified in FCC's proposal \ since the educators had not mentioned this in their comments filed last August. Similar position was taken respecting educators' request for sharing of existing VHF channels in those areas where all VHF facilities already have been assigned [Broadcasting • Telecasting, Dec. 11, 4]. TANTON DENIES Color Off er to Admira FLAT denial that CBS ever offered its color television system to Admiral Radio Corp. "at any time" was issued in Chicago early last week by CBS President Frank Stanton as Admiral President Ross Siragusa planned to make that assertion before the Investment Analysts Club there. Mr. Stanton, who received an advance copy of Mr. Siragusa's speech before it was given on Wednesday, issued the following statement Tuesday: After reading the advance handout on Siragusa's talk, I phoned him to say that I have never made Admiral such an offer. He contended that during the spring of 1949, I had made an offer to him personally. I advised Siragusa that I was in Europe at the time he said I made the offer. Moreover, I had no conversation, meeting, or correspondence with Siragusa on any subject during 1949, and I have never made any offer to Siragusa on color television at any time. Accordingly, if Siragusa makes a statement about my offer as in the publicity handout, it is false. Mr. Siragusa went ahead with his full speech, as planned, charging Wednesday that Mr. Stanton in May 1949 asked in a phone conversation: "Why don't you with some other manufacturers bail us out of this color development?" He said he rejected the "offer" because he "didn't believe in it (the system)". "I hope the final decision will be left to the public," he said. After the speech, the manufacturing executive answered questions from the floor at the luncheon meeting. Reporters queried him on the portion of his statement in which he said Mr. Stanton "offered to sell Admiral its color system, lock, stock and barrel, for $3 million." GUESTS at CBS color television demonstration in Philadelphia a fortnight ago [Broadcasting • Telecasting, Dec. 18) include (I to r): Neal D. Ivey, president, Neal D. Ivey Adv.; David R. Albright, vice president and treasurer of McKee & Albright Inc.; Louis Hausman, CBS vice president in charge of advertising and sales promotion; Roy McKee, president, McKee & Albright Inc., and Edmund H. Rogers, partner in Gray & Rogers Agency. T e 1 e c a In May 1949, Mr. Siragusa sair he and "three or four other manu facturers," one of whom reportedl was Motorola, were concerned ove the closed circuit color TV medica: demonstrations planned for sho'w ing in Atlantic City. Because th manufacturers did not want a put lie "uproar" about color just a' black-and-white was getting unde' way, they telephoned William £ Paley, CBS board chairman, to re quest that the demonstrations b dropped. Mr. Siragusa said Mr. Paley re ferred him to Mr. Stanton. Mi Siragusa, at that time a CBS-TAsponsor, said Mr. Stanton offered the CBS color system for $3 mil« lion, "the amount spent in 10 year' of research." Exchange of Calls Mr. Siragusa returned Mr. Stan' ton's call of Monday, telling hiiil he was still going to mention th "offer" in his speech and askinjl if it would be more desirable i Mr. Paley's name were mentionci instead of Mr. Stanton's. The lat ter said no, he reported. In the remainder of his speechi the Admiral president said "Th long term outlook for TV is sound but the immediate future uncei'tain The industry will have a poore year in 1951 than in the recort year of 1950." He estimated Admiral's 195( sales at approximately $230 mil lion, TV accounting for $173 mil lion. "More than 25%" of the tele vision industry will be in defensi work in the immediate future, Mr Siragusa said. He anticipates ai industry production maximum o: 5 million units because of shortages of materials. "Volume will be high' but conversion costs will mak< profits suffer," he said. He pre dieted a 95% TV saturation withir five to 10 years. iting • BROADCASTING