Broadcasting Telecasting (Oct-Dec 1957)

subscription broadcasting by television stations, with a minimum of restricting conditions. Opponents, raising the spectre of a gravely impaired free television service, insist that the only proper course for the Commission is to forbid the service or to refer the question to Congress. "We believe the proper course for the Commission does not lie at either extreme. Having concluded that the Commission has jurisdiction in the matter, we can find little justification for either carte blanche authorization of the use of broadcast frequencies for an untried service of this kind or, on the other hand, for refusal by the Commission to afford a suitable opportunity for subscription television to demonstrate its capacity to render a useful service; for the public to appraise its desirability and register its reaction — favorable or otherwise — to what that service may have to offer; and for the Commission to determine what legislative recommendations it may be desirable to submit to Congress concerning the appropriate methods of regulating the service, in the event a trial indicates it should be permitted on a continuing basis. "We are taking action at this time because this Commission is responsible, under both the Communications Act and the Administrative Procedure Act, for acting on the proposals before us, and in our opinion further delay in reaching our decision would not be consistent with our duties. "Our review of the record and a painstaking study of the numerous issues it presents have led us to the conclusion that our responsibilities can best be discharged by opening the way to the consideration of applications by television station licensees for authorization to conduct subscription television operations within the limitations laid down herein. Our decision in each case will be governed by whether the specific operation proposed meets the stated requirements and in our judgment would serve the objectives set out in this Report." The Commission concluded: "In our belief, trial subscription television operations conducted within the framework of the foregoing conditions and requirements would afford much needed opportunity: "(a) to enable the public to register its own judgment with respect to the subscription television service offered. "(b) to obtain data and information which would assist the Commission to determine the probable competitive impact of a subscription television service upon the free system. The present record affords an inadequate basis for sound judgment as to whether the systems as presently proposed would provide stimulating competition with the present system which would be beneficial to the public, or whether subscription television could potentially impair the operation of the present system to such a degree that it could not continue to provide service of the present or foreseeable quantity or quality of free programming, and would oblige the public to pay eventually for the reception of numerous programs of the kind it now receives free of direct charge. "(c) to obtain information, based on oper ■""EVENT i OT OF YOUR N SET j RYAN SAYS IT'S WAR— VS. PAY TV Although there are many who can't decide which side of the fence to straddle when it comes to pay tv, there's no doubt at all in the mind of Harold M. Ryan, Michigan state senator. He's agin it. Sen. Ryan, who considers himself a long-time opponent of pay tv, launched his public campaign Oct. 11 in downtown Detroit. Battle headquarters is a 30-foot house trailer equipped with loudspeakers and decorated with banners urging public protest (see above). Volunteers hand out postcards to pedestrians; these are addressed to the FCC, c/o The White House. The cards read: "Please do not take away free tv programs. If present plans for pay tv are allowed, one or all of our existing free channels would be blacked out unless we pay to see the program. Please do not let this happen." Space is provided for signature and address. Mr. Ryan hopes his campaign will spread from Detroit throughout the state, since he feels the only way to win is through the expression of public sentiment. He's aiming for the support of various civic and business organizations, and states he is undertaking the campaign at his own expense to "urge the people into action." ating experience, concerning the possible need to standardize equipment and methods used in the technical operation of a subscription television service. "(d) to determine, on the basis of experience, whether and the extent to which any aspects of a subscription television would call for the imposition of additional controls, whether such controls require the adoption of amendments to the Communications Act, and if so, what recommendations should be made to Congress." Detailed Requirements Listed for Applicants It's a pretty detailed and comprehensive documentation applicants for toll tv operation must submit to the FCC. Here are the FCC's own words on what it expects from subscription tv applicants for test operation authority: Information to be Submitted by Applicants Applications for authorizations to conduct subscription television operations must contain the following information and be accompanied by executed contracts between the applicant and the persons designated below covering the matters indicated. Applications and documents submitted therewith must be filed in an original and fourteen copies. A. Complete, detailed description of the design and method of operation of any encoding and decoding or other equipment to be used in the proposed subscription television operation. If requested by the Commission, applicants must furnish to the Commission's laboratory at' Laurel,' Maryland, models of all decoding and other portable equipment to be used in the operation, and must make available for inspection by Commission representatives any non-portable equipment such as encoders proposed to be used. At the Commission's discretion, action may be withheld on applications until the Commission has had an opportunity to inspect models of the equipment proposed to be used and observe the operation of such equipment. B. Complete, detailed statement describing in all particulars the manner in which the proposed operation will be conducted, including: ( 1 ) The; methods ; for disseminating any decoding information needed by subscribers, and for billing . and collecting charges, including installation charges, monthly charges, charges per program or any other charges payable by subscribers. (2) A complete statement of the terms and conditions under which contracts Broadcasting October 21, 1957 • Page 83