Broadcasting Telecasting (July - Sept 1952)

TV BIDS PASS 500 MARK TELEVISION applications continued to pour into the FCC last *week as the Commission on Tuesday (July 1) officially began "processing" of the first priority cities. By the end of the week, some 500 new and amended applications were estimated to have been filed since April 14, when the Commission issued its Sixth Report and Order lifting the TV freeze and finalizing the revised allocation plan [B*T, April 14]. By Wednesday night (key Broadcast Bureau License Division staff members have been working overtime to accommodate reporters), the 421 applications available which reported estimated construction costs disclosed that a total of more than $157 million is planned for new station building. This is a per-station average of $373,595. Of these applicants, 413 reported they will spend a total of almost $122 million in the first year on operating costs — a per-station average expenditure of almost $295,000. A total of 394 of these applicants estimated revenue for the first year of operation in the aggregate of $124.6 million, an average of $316,200 for each station. Five more existing stations, of the 30 which are required under the Sixth Report to change their channels to conform to the new allocation plan, have filed their requests for changes, boosting such pending applications to 22 and pushing the combined cost of changes to almost the $6 million mark. This is a per-station cost of $271,000. The largest number of new applications hit FCC over the previous weekend, June 26-27 and June 30-July 1. On last Tuesday, the applications had piled up in the License Division awaiting initial clerical handling, which was not caught up until late Wednesday. Commission spokesmen pointed out that the 500-odd new and I amended applications should not technically be counted as the total actually on file. They explained that a majority of the approximately 535 applications on file at the issuance of Sixth Report continue in legal effect until they are either amended by the applicant or dismissed by the Commission. FCC's spokesmen said the old unamended applications will not be dismissed until they are reached in the city-by-city processing under the temporary processing procedure [B*T, May 26]. It was estimated that roughly 300 of these continue in force, thus boosting the total of pending new station requests to around 800 as of last week. The first noncommercial, educational television applications reached the Commission last week. These included five of 10 planned by the Regents of the U. of New York State. Others were Kansas State College, for reserved VHF Channel 8 at Manhattan, and the Lindsay Hopkins Vocational School, for reserved VHF Channel 2 at Miami. Kansas State College claims distinction as the first to file. It is licensee of the educational AM station, noncommercial DESPITE easing of the government's ban on production of color television equipment, there appeared to be little alacrity on the part of manufacturers to apply for authority to turn out household color receivers for mass use [B*T, June 30]. This was apparent a week after the National Production Authority partially lifted its freeze on manufacture of home-type equipment, with firms required to meet a stiff set of standards for obtaining permission to use present quotas of materials. As of last Wednesday, no standard monochrome set-makers had applied for approval, though it was conceded that applications may be slow in reaching NPA until their legal counsel has had an opportunity to study the amended order (M 90). Theatre TV is exempt from restrictions. While no firms formally applied for such authority, at least two leading electronics companies — RCA and Philco — have requested appropriate application forms and copies of the modified directive from NPA's Electronics Div., it was learned. One other — Chromatic TV Labs, a subsidiary of Paramount Pictures Inc. — was understood to have sought clarification on behalf of proposed Lawrence tri-color tube. Both RCA and Philco have KSAC Manhattan. Three educational institutions are involved so far in applications for commercial channels. Michigan State College, East Lansing, where it operates noncommercial WKAR, filed for commercial UHF Channel 60 there, but indicated it will operate noncommercially most of the time. The school told FCC that of regular network shows it will air, only about 6% will be commercial. The Regents of the U. of Michigan, which operates WUOM (FM), noncommercial outlet at Ann Arbor, as 26% owner of W. S. Butterfield Theatres Inc., is party to the latter's application for commercial UHF, Channel 16 at Flint. The station will be operated commercially. Earlier, St. Louis U. was party to an application for a commercial asked the FCC for authority to conduct extensive color TV tests. The Commission previously rejected the request of Philco and other firms, and held out hope for RCA by stating it would consider this and other requests "on a case to case basis." RCA is seeking to conduct field experiments during regular broadcast hours with its "compatible color television system and tricolor tube." Commission policy at present is to prohibit on-the-air tests during such hours. CBS Inc., on the other hand, has stated that the NPA order would have no effect on its "present operations or our plans for the future." CBS-Columbia Inc. will continue, however, "active research efforts." CBS Inc. also took a dim view of the possibility of making color TV "a living reality ... in the face of resistance or lack of cooperation from the majority of the industry." This inherent conflict over the CBS and RCA color systems is pointed up anew in continuing comments from manufacturers. Typical were these from Chicago firms : Ross D. Siragusa, President, Admiral Corp. — We believe the mechanical color system is not the solution. The electronic system is the most practical. So, until FCC approves a compatible system, the status is quo. TV outlet at St. Louis on VHF Channel 11 [B*T, June 23]. Applicant is St. Louis Telecast Inc. The New York State Board of Regents filed for UHF noncommercial, educational channels in New York City, Albany, Buffalo, Rochester and Syracuse. Additional requests are to be filed soon for channels reserved at Utica, Binghamton, Ithaca, Poughkeepsie and Malone. The outlets proposed will cost about a auarter-million dollars each to build. A cost breakdown of the 421 applications reporting construction costs by last week disclosed 76 proposed stations costing less than $200,000. A total of 103 will cost $200,000-299,999; 80 will cost $300,000-399,999; 54, $400,000-499,999; (Continued on page 9U) The relaxation of the ban against color set manufacture will have little or no effect on the TV industry, because all it does is give the go ahead to something 99% of the industry is not interested in. William J. Halligan, President, Hallicrafters Co. — [The action] won't mean a thing until an all-electronic color TV system is adopted. Hallicrafters is working on compatible sets which will be ready for showing to the FCC in a reasonable time. We're within shooting distance of a good all-electronic color set. Ernest Alschuler, President, Sentinel Radio — [The industry will have a big problem if] the present [CBS] system wins out and the 17 million black and white sets are thrown in the ash can. [The order does not mean color TV] is just around the corner. It's at least two years off, I'd guess. John S. Meek, President, Scott Radio Labs. — [NPA] has done the logical thing in lifting the ban. The TV industry insisted right from the start there was no justification for the ban order either from the manpower or material standpoint. You will not have a lot of color sets until there is color programming, and you won't have comprehensive color programming until there are lots of sets. No one is in an economic position to take the initiative in creating a market for either sets or programs. We must first pass through a more or less lengthy adjustment period. Adoption of RCA's all-electronic system would be to the best interest of the public. COLOR SETS Makers Slow to Apply With NPA BROADCASTING • Telecasting July 7, 1952 • Page 61