Broadcasting Telecasting (Oct-Dec 1957)

operating; the others are grantees whose stations are not on the air. Mr. Loewi, WITV's president, was once general manager of the DuMont Television Network. Mr. Compton's telegraphic reply was the most extensive in this group. He said: "We expect to apply for subscription tv test. We are the only operating radio station with a Philadelphia tv construction permit except the three networks. We are in communication with several well-known pay tv systems manufacturing proponents and also theatre operating interests with the view of using our ch. 17 with equipment already bought and delivered. We have made no definite commitments to date but are following the matter actively. We expect to finalize plans in ample time to meet the FCC deadline for applications." Mr. Compton apparently overlooked the fact that Storer Broadcasting Co. owns independent WVUE (TV) Wilmington, Del., and WIBG-AM-FM in Philadelphia. Mr. Corwin declared that he has had discussions with different toll tv systems "but have not formulated arrangements definitely." Among those who answered with a straight and categorical "no" were: Oliver Treyz, ABC-TV; Robert G. Magee, WHUMTV Reading, Pa.; Bernard Goodwin, DuMont Broadcasting Corp.; Craig Lawrence, CBS-TV; John S. Hayes, WTOP-TV Washington, D. C; Roger W. Clipp, Triangle Stations; Stanley E. Hubbard, KSTP-TV St. Paul, Minn.; Al Larson, Meredith Publishing Co. stations; Amon Carter Jr., WBAP-TV Fort Worth, Tex.; Harold Thomas, WATRTV Waterbury, Conn.; C. Howard Lane, KOIN-TV Portland, Ore.; N. Keats, RKO Teleradio Pictures Inc. Broadcasting queried 75 individual stations and 13 group owners involving 37 stations. The wires were directed to all operating stations and grantees in the 20 cities which, according to the FCC notice two weeks ago, were eligible to apply for pay tv test authorization. Eligibility depended, according to the Commission, on a community receiving at least four Grade A tv signals. WHAT PROPONENTS THINK OF FCC'S TEST PROPOSALS Pay tv proponents last week expressed a cautious type of satisfaction, following the issuance of the FCC's "First Report" on tests for toll tv. The gist of their statements follows: Zenith — The FCC's toll tv order eliminates any necessity for Congressional action, Zenith's E. F. McDonald Jr. maintains. The Zenith president took that position in a formal statement issued after the FCC released its "First Report" [Government, Oct. 21]. "The Commission's carefully planned program eliminates any possible need there may have been for Congressional action," Comdr. McDonald stated. "I do not see how any member of Congress could question the right of his constituents to decide what entertainment they want in their home, or how they pay for it . . ." Zenith announced that it will begin preparation immediately for initial Phonevision operation, but it did not signify where these tests will be. Mr. McDonald declared that the Commission's order means toll tv will become operative in the reasonably near future. He reported that Zenith has "numerous" applications on file for pay tv franchises from tv stations and operators in different markets. No identifications were made, however. Comdr. McDonald characterized the FCC report as "reasonable and thoughtful." He added: "The public will very quickly tell the FCC and the world if subscription tv is in the public interest" by either buying or refusing to buy its features. If the public fails to buy, Comdr. McDonald said, toll tv "will die a natural death." Skiatron — Arthur Levey, president of Skiatron Electronics & Television Corp., noted that "for more than seven years we have been testing SubscriberVision, with the approval of the FCC, in cooperation with WOR-TV New York. We hope that our experience in this city, in addition to our 10-year pioneer development work on Subscriber-Vision, will give us the opportunity to serve the millions of set owners in the metropolitan area who want a chance to see high-quality programs of their choice." Mr. Levey hailed the FCC toll tv report as a "giant step forward to give millions of set owners the freedom to choose the programs they want to see." Bi-Tran — Isaac Blonder, president of Blonder-Tongue Labs Inc., Newark, N. J., was pleased FCC will allow a toll-tv test since this "is the most democratic thing to do if this is a democratic country." BlonderTongue proposes a "compatible" pay tv system (Bi-Tran) which transmitts two programs simultaneously, one the conventional free program and the second the pay tv show. The technique involves reversing rapidly the modulation polarity of the signals on the same carrier. It is not fully developed, but Mr. Blonder said he hopes to give a demonstration in the near future. He felt some "compatible" technique will win out eventually. He said if such a method had been set forth in the Commission's test rules the test would not have to be limited to 20 markets but could be tested anywhere since regular programming would not be affected. TeleGlobe — Solomon Sagall, president of TeleGlobe Pay Tv System Inc., said: "The announcement by the FCC of the ground rules is a cautious step in the right direction. Several years of public debate have given ample proof of the desire of wide segments of American tv viewers for better and higher quality television than is obtainable today. America is marching inexorably towards pay tv. This process cannot be halted any longer. "Of course, the FCC has left the door open for Congress, when it reconvenes, to take legislative measures, if it so desires, against pay tv. Pay tv will not kill free tv. The public simply will not stand for it. Pay tv will offer a challenge and healthy competition to free tv and thus ultimately bring about an overall improvement of the quality of tv programs." TeleGlobe proposes to broadcast an un scrambled video signal over the air, but to feed the audio portion of the picture over telephone lines. HARRIS SAYS SUBSCRIPTION TV NEEDS CONGRESSIONAL REVIEW At the NARTB regional conference in Memphis Friday, Rep. Oren Harris (D-Ark.) said that pay tv "is another example of needed congressional review." Rep. Harris, chairman of the House Commerce Committee, has been an outspoken critic of the FCC's pay tv stand and announced his committee would hold January hearings the same week the Commission said it would accept subscription tv applications [At Deadline, Sept. 23]. Even though the Communications Act is silent on the question of whether a broad caster "may charge a fee to listeners or viewers for programs . . . nevertheless, the Commission has held that the present act gives the authority to authorize subscription television," he said. "It is interesting to note . . . that the Commission gave its reasons as to REP. HARRIS why it thought that it had authority to authorize subscription television only after our committee insisted that the Commission set forth the legal basis for its decision. "As in the case of network broadcasting [see full report on Rep. Harris' speech at Memphis, page 66], legislative oversight requires an examination on the part of Congress whether the general provisions of the Communications Act of 1934 — which, I repeat, is silent on the subject of subscription television — are adequate to deal in the public interest with this new development in the field of broadcasting. ". .. . The Commission, of course, is trying to assure the American people that any authorization of subscription television will be circumscribed in such a way that it will not jeopardize existing free broadcasting. On the other hand, subscription television offers an outstanding opportunity for further concentration of power in the field of broadcasting and hindsight shows that the Commission's efforts to cope with the concentration of power in the hands of the television networks and other multiple station owners have proven unsuccessful. "If this was not so, the Congress would not be called upon now to consider strengthening the federal Communications Act in order to counteract the concentration of power which has developed and which is thought contrary to the public interests," Rep. Harris stated. This, at least, seems to be the conclusion of the Barrow report and other studies and reports which have preceded it, he said. FOR NEWS ABOUT WIRED SUBSCRIPTION TV SEE PAGE 100 Broadcasting October 28, 1957 • Page 33