Broadcasting Telecasting (Apr-Jun 1957)

FILM PAY TV WOULDN'T HURT MOVIES • Investment firm survey sizes up Hollywood majors • Sees toll tv replacing networks as movies customer ADVERTISERS AND AGENCIES EDT, over ABC-TV, starting Oct. 17. Series currently is presented Wednesday, 8:30-9 p.m. and will continue in this time period for summer. Agency: Fletcher D. Richards Inc. Navy Log is produced by Gallu Productions Inc. in cooperation with U. S. Navy. Associated Products (5 Day pads, stick and roll-on deodorants), N. Y., signed to cosponsor ABC-TV's Broken Arrow (Tuesday, 9-9:30 p.m. EDT) starting June 4. Series sponsored on other weeks by Miles Labs through Geoffrey Wade Adv. Agency for Associated Products: Grey Adv., N. Y. Ronson Corp. (cigarette lighters), Newark, N. J., signs to sponsor NBC-TV's NBC News two nights a week next season beginning Sept. 23. Show to be telecast next season at 6:45 and 7:15 p.m. Agency: Norman, Craig & Kummel, N. Y. Bristol-Myers Co., N. Y., signed to sponsor Arthur Murray Party starting July 1 Monday 9:30-10 p.m., EDT when NBC-TV show moves to new evening time for summer. Show currently is aired Tuesday 8-8:30 p.m. Agency: Young & Rubicam, N. Y. Eastman Kodak Co., Rochester, renews ABC-TV's Ozzie and Harriet (Wed., 9-9:30 p.m. EDT), through J. Walter Thompson Co.. N. Y. Midas Inc. (automobile mufflers), Chicago, extends its current sponsorship of Paul Harvey News on ABC Radio, Mon. through Fri. 6:30-6:35 p.m. EDT, to 52 weeks. Institute of Men's Wear is entering network radio for first time in mid-August. Institute will promote its message during weather programs on NBC Radio's weekend Monitor service. Contract, placed through BBDO, New York, will run through October. SPOT BUYS Bavarian Brewing Co., Covington, Ky., launching 26-week saturation radio spot campaign May 20 via four stations in Cincinnati and Dayton using about 200 announcements weekly. Agency: Calkins & Holden, N. Y. U. S. Rubber Co. (MH 30, plant insecticide) buying into farm programs in tobacco area, starting May 20 for eight weeks. Agency: Fletcher D. Richards Inc., N. Y. California Oil Co., Perth Amboy, N. J., beginning heavy tv spot campaign to run to end of summer in 18 northeastern markets to introduce new high octane gasoline, Calso Supreme 300-Plus. Agency: BBDO. N. Y. McKesson & Robbins, N. Y., announces plans for radio and tv campaign for its Tartan sun tan lotion June 10 with intensive spot broadcasts in 30 major markets over five week period. Agency: Dancer-Fitzger. aid-Sample, N. Y. A&A SHORTS Hoffman & York Inc., Milwaukee, announces move of quarters from 808' N. 3rd St., to 5130 W. Vliet St. Telephone: Spring 1-2600.. IT will be the commercial tv network rather than the theatre exhibitor or the Hollywood motion picture producer who will fall "victim" to a "successful" subscription tv operation. This opinion was voiced in an investment survey, "The Value Line," released last week by Arnold Bernhard & Co., New York, investment firm. The special treatment afforded subscription tv was because of "talk that the FCC will soon license" the pay-as-you-see system. The Bernhard survey encompasses the "amusement industry" in general (motion picture firms mainly) and the status of the "majors," namely American BroadcastingParamount Theatres (owner of ABC-TV Division and ABC Radio), Columbia Pictures Corp. (Screen Gems is subsidiary), Loew's Inc. (MGM-TV is a division), Paramount Pictures Corp. (various interests in tv, including International Telemeter, a pay tv system), Twentieth Century-Fox (interest in NTA Film Network) and Warner Bros. All except Paramount Pictures have released "old" features to tv. Earlier this year in a similar evaluation of the motion picture industry, Bernhard found a trend of Hollywood ascendancy over television [B»T, Feb. 18], saw movie stocks as "excellent hunting grounds for risk-taking investors seeking generous current income," and predicted "a prosperous year in 1957" for the movie industry. Among the various findings: • Paramount Pictures can be expected soon to announce sale of its pre1948 feature film library to tv with an estimated net to the company of some $30 million (or $15 per share) after taxes. (A deal apparently is not "imminent" for sale to tv by Paramount Pictures of its big backlog of pre1948 feature product. Though the Bernhard survey last week indicated such a sale could be expected "within the next few weeks" [after May 6], Paul Raibourn, Paramount's vice president, said in New York that no negotiation is about to be concluded, adding certainly not in the "next two weeks.") • The broadcasting arm of AB-PT last year had a gross income only 2% less than that of the theatre circuit. Had tv revenues at ABC "extended their vigorous growth trend throughout 1956," they would have exceeded the theatre receipts last year. But because of failure to increase overall time sales in the current broadcast season and since theatre attendance is registering gains, there is doubt whether broadcast income will pass AB-PT's theatre' receipts this year. The investment firm based its subscription tv evaluation on the belief that the products of Hollywood producers would be "well qualified" for presentation on pay tv, thus opening up new territories; that 'theatre : owners could take part by showing subscription tv movies via cable at a cost probably less than that of building new theatres, and that motion picture theatre attendance will hold up because people want to "step out" and enjoy the type of recreation and variety that can be supplied by quality features in theatres — -"no foreseeable home tv set can duplicate these advantages." The investment survey reported: "We believe that the present uptrend in box office receipts is not of a fleeting nature (especially since a substantially larger number of quality features will be forthcoming during the summer months) and reiterate our previous prediction that 1957 will be a prosperous year for the motion picture industry." Among the producers, Paramount Pictures and Twentieth Century-Fox were named specifically as most likely to show "wide advances in net operating earnings." Here is a rundown of the motion picture leaders in summary form: American Broadcasting-Paramount Theatres— Owner and operator of largest motion picture chain in U. S. and third largest radio and tv network. Earnings comparisons probably will "turn favorable again" in the second half of this year. ABC-TV has strengthened its format for the next season and has sold the "greater portion" of its time to advertisers. Movie attendance is likely to show a "persistent uptrend," boosting AB-PT's theatre receipts. Company's average annual revenues are projected to $300 million for 1960-62, based on a national disposable income of $345 billion. While not suitable for investment-grade portfolios, AB-PT represents an "interesting holding in diversified accounts for generous current income and prospect of longterm capital growth." Columbia Pictures — In addition to motion picture production and distribution, it has Screen Gems Inc., a subsidiary that produces films including commercials for tv and sells and distributes Columbia's film library to tv. About 45% of Columbia's revenues originate abroad. Columbia has trouble at its domestic box offices this year, but sales by foreign subsidiaries and Screen Gems have improved. Screen Gems' revenues may be more than ] 50% above last year's $11 million. Though j earnings are improving, they are not doing I so in proportion to the growth in sales. I This is because Screen Gems makes only! nominal income on original runs of tv films! it creates while principal profits are expected 1 from syndication and reruns (effect of the I latter "may be several years away"). Lease I income from film rental to tv is expected I to bring both growth and stability to future I earnings. Columbia's projected average an1 nual sales: $110 million in the 1960-62 I economy. Loew's Inc. — The last fully integrated I producer, distributor and exhibitor of mo I tion pictures, the company is divesting it I self of theatres this year. Theatres account I for about 40% of Loew's revenues, the re Page 40 • May 20, 1957 RROADr»STING • TELECASTING