Broadcasting (July - Sep 1950)

National Press Bldg. Washington 4, D. C. SEPTEMBER 25, 1950 BROADCASTING, Telecasting $7 annually, 25c weekly SET MAKERS' DILEMMA Sept. 29 kns'Her Said Impossible MOST makers of TV receivers will be physically unable to comply with the FCC's request that they agree by Sept. 29 to start including bracket standards in all sets produced after a date in early November. That's the way the color controversy stood at the weekend, judging by views of many large and small set manufacturers who have been studying the Commission's proposal to build all sets so they can receive CBS color in monochrome. Radio-Television Mfrs. Assn. refused to take any action as an association, as suggested in the FCC's Sept. 1 color TV report [Broadcasting, Sept. 4]. The RTMA board met last week in New York. Its stand was taken on recommendation of the RTMA TV Committee, which had opposed joint association action on recommendation of counsel [Telecasting, Sept. 18]. With FCC's deadline only a few days off, many manufacturers threw up their hands in despair as they continued efforts to extract from technical and statistical experts at least a few general recommendations on circuitry and economic aspects of bracket receivers. At the weekend, unofficial manufacturer attitude seemed to boil down to rather general willingness to go along with the FCC as far as possible by building limited quantities of receivers capable of picking up CBS color in black-andwhite. The technical and distribution problems are staggering, some contended, but they are willing to give it a try. Supply and Demand Question Regarded as highly important in the industry was the oft-expressed feeling that these bracket receivers, which may cost anywhere from $10 to $100 additional, must face the law of supply and demand. If the public wants such sets, and will buy them, the manufacturers will be most happy to make them as fast as production lines can operate, it was indicated. The immediate problem of meeting FCC's Sept. 29 deadline was considered insoluble by many manufacturers, judging by informal opinions voiced at the RTMA fall meeting last week. RTMA itself, however, notified the FCC that it "has never attempted to, and cannot require its members to build, or refrain from building, particular sets or sets of particular capabilities." RTMA made known its hands-off policy in a letter to the FCC, signed by RTMA President Robert C. Sprague. The association said the decision of manufacturers "must be left to the individual determination of each manufacturer." Text of the RTMA letter follows: The "First Report of Commission (Color Television Issues)," after proposing the adoption of bracket transmission standards and a postponement of an ultimate color decision, requested set manufacturers to submit, by Sept. 29, 1950, a statement as to whether they would at a specified time thereafter (presumed to be about Nov. 10, 1950) build all television sets so as to be capable of operating within the brackets. Certain language of the Commission's report, particularly paragraph 152, suggests that the Commission may have believed that the RTMA should, as a group, provide the Commission with the answer as to whether its members would, or would not, build sets to reflect bracket transmission standards. The association has never attempted to, and cannot, require its members to build, or refrain from building, particular sets or sets of particular capabilities. So far as this association is concerned, the decision whether to build sets incorporating bracket standards must be left to the individual determination of each manufacturer. We are so advising all members of our set manufacturing division by sending them a copy of this letter. Response to the Commission by Sept. 29, 1950, is left to the members individually. At the same time, the association desires to be as helpful to the Commission as possible in providing information. It reproduced and forwarded to its membership, promptly and without comment, the entire text of the Commission's report. It is understood that appropriate panels of the National Television System Committee are responding to the Commission's request that interested parties submit comments on the bracket transmission standards as contained in its Notice of Proposed Rule Making by supplying certain technical data and information of the type which has customarily been fur nished the Commission in the past. If there is anything further the Commission feels that the association can do in cooperating with the Commission, we will appreciate being advised. RTMA officials refused to discuss the association's viewpoint other than to explain that it must take a hands-off attitude in view of anti-trust and other legal aspects. Individual manufacturers, however, spoke freely and often violently about FCC's color threat. Compatibility Urged Most of them said they weren't concerned about what color system the FCC adopted so long as it didn't render present receivers obsolete or wreck the market for set sales. They indicated they would cheerfully make anything the public demanded in a TY set, whether beverage dispenser, electric fan or CBS polychrome picture. But there was a vast silence among most of those asked if they would accede to the FCC's request for a decision by Sept. 29 on con(Continued on page 72) NETWORK ALLOCATIONS '"^-^ hi, ATTEMPTS to reach a compromise among the four television networks in their requests for time allocations on AT&'T network facilities wererevived last week without apparent success. The schedules now under discussion must go into effect Sept. 30, the date of expiration of present network allocations on AT&T facilities, but despite the nearing deadline the gap between the demands of CBS and NBC on one hand and ABC and DuMont on the other appeared to be as wide as ever. Representatives of the four networks met under the aegis of the AT&T Wednesday in New York. But they reportedly left the meeting no nearer an agreement on the basic system of allocating the valuable time. One procedure to which they did agree was to submit what each believed to be its minimum requirements. Whether these new requests would provide a more favorable atmosphere in which to effect a compromise was not known, but it appeared doubtful that any of the networks would stray that far from their original positions. There is wide divergence between the demands of CBS and NBC on one side and ABC and DuMont on the other. CBS and NBC, enjoying favorable affiliation contracts in many markets, have insisted that the allocations be made on the basis of what network programs the stations wish to take. Since both of these networks are in position to provide affiliates with heavy commercial schedules, and since many of their affiliates, in turn, must carry considerable network time in order to recover appreciable revenue from the networks, the allocation of AT&T facilities on the basis proposed by CBS and NBC would, in the opinion of ABC and DuMont, deprive the other two networks of improving their commercial schedules or their affiliation line-ups. Boston Problem Typical A good example of the general problem is Boston, where NBC has a primary affiliation with WBZ-TV and CBS has such an agreement with WNAC-TV. To realize maximum revenue from their network contracts, WBZ-TV must take a preponderance of NBC commercial programming and WNAC-TV a heavy percentage of the commercial shows offered by CBS. Since Telecasting • BROADCASTING these are the only two stations in Boston, ABC and DuMont stand little chance of including that market in station line-ups they offer to sponsors, if AT&T allocations are made on the basis proposed by CBS and NBC. The basic contention of DuMont has been that all four networks should be entitled to an equal chance to deliver programs into any market and that AT&T should allocate its facilities among the four indiscriminately. DuMont, it has been reported, points out that if AT&T allocations were made on a basis of equality among the networks, those networks which did not succeed in lining up sponsors or stations acceptances to fill their share of the facilities time would relinquish the unused part. This argument is opposed by CBS and NBC on the grounds that such a situation would provide an artificial and arbitrary handicap to the networks which have got off to a head start commercially. ABC's argument has to some extent followed that of DuMont, although ABC has not sought a blanket division of facilities on the basis of 25% to each network (Continued on page 82) September 25, 1950 • Page 69