Broadcasting Telecasting (Oct-Dec 1957)

ADVERTISERS & AGENCIES continued A&A SHORTS Warwick & Legler, N. Y., has moved its media department to 26th floor of Biltmore Hotel, Suite 2614. All telephone calls still will go through W&L switchboard at 230 Park Ave. Waldie & Briggs Inc., Chicago, announces acquisition of Robert Christopher Agency there, with head of latter firm joining Waldie & Briggs client contact staff as account group supervisor. Richard Crabb announces formation of Richard Crabb Assoc., new agency devoted to agricultural accounts, with headquarters at 20 N. Wacker Drive, Chicago. Mr. Crabb formerly was senior member of E. H. Brown Adv., same city, agricultural division. Potts-Ray Assoc. has moved to larger space at 971 North La Cienega Blvd., L. A. Allan J. Copeland Adv., Chicago, announces move of offices from 100 E. Ohio to 75 E. Wacker Dr. Telephone: Central 6-8586. Teawell & Shoemaker Inc., San Diego, has been formed by merger of William H. Teawell's and Lisle F. Shoemaker's San Diego agencies. Offices at 1357 Seventh Ave. AGENCY APPOINTMENTS Sturdy Dog Foods Inc., Burbank, Calif., names Dan B. Miner Co., L. A. A. D. Carpenter, Miner, vice president, is account manager. Coastal Foods Co. (Phillips and Gibbs canned goods), division of Consolidated Foods, appoints W. B. Doner & Co., Detroit. A. Magnano & Sons (Old Yankee brand food products), Seattle, Wash., appoints Frederick E. Baker & Assoc., same city. Comstock Foods Inc., Newark, N. J., appoints Gordon Best Co., Chicago, to handle advertising for its Pie Sliced apples and pie fillings. Victor J. Noerdlinger Inc. (importers-distributors of Tobler chocolates), L.A., appoints Cheshire Adv. Assoc., Hollywood. Transocean Airlines, southern California division, appoints George Patton Adv., Hollywood. American Export Lines, N. Y., appoints Doyle Dane Bernbach, same city, effective Nov. 1. Account, which uses spot radio on good music stations during tourist season, moves from Cunningham & Walsh, N. Y. Central National Insurance Companies of Omaha appoints Buchanan-Thomas Adv., Omaha, to handle its account in 41 states, D. C. and Alaska, effective Nov. 1. Fannie-May Candy Co., Chicago, appoints McCann-Erickson, same city. Eureka Williams Corp. (vacuum cleaners, heating equipment), Bloomington, 111., appoints Earle Ludgin & Co., Chicago. Seamprufe Inc. (Seamprufe lingerie), N. Y., has named Frances, Morris & Evans, New York, to handle all advertising. Page 32 • November 11, 1957 PROGRAM SERVICES RKO TELERADIO PLANS FOR TOLL TV MR. O'NEIL KHJ-AM-TV Los RKO Teleradio Pictures Inc. plans to enter the toll television business. A statement issued by Thomas F. O'Neil, president, said RKO Teleradio Pictures is filing today (Monday) for FCC authorization to participate in toll tv tests. The company, he added, already has begun negotiations with developers of subscription tv systems to use one or more of RKO's broadcasting and motion picture facilities for trial demonstrations of pay telecasting. The move by Mr. O'Neil is the first on record of a major broadcaster in the direction of toll tv. RKO Teleradio Pictures owns and operates WOR-AM-TV New York, WNAC•AM-TV Boston, Angeles, KFRC San Francisco, WHBQ-AM-TV Memphis, WGMS-AM-FM Washington, and the Don Lee and Yankee Networks. The company also owns the RKO Radio Pictures motion picture studio. Mr. O'Neil made it clear that his company plans to become active in pay television. He asserted: "Toll tv is already with us and RKO Teleradio proposes to waste no time or effort in attempting to stem the tide of the inevitable, especially since this would only serve to divert its rich flow to other communications streams, such as closed circuit. We propose to lend our efforts to the development of a compatible [over the air, as distinguished from wired tv] pay tv system, operating on the regular television broadcast band, which will produce a real opportunity for the viewer to choose among free and pay television programs. It is the broadcasters, along with the equipment manufacturers and advertisers, who have made American television the super-medium of communication and entertainment it is today. It would be economically and socially wasteful for broadcasters not to take their rightful place in the forefront of innovators who seek to broaden the base of television entertainment." Mr. O'Neil expressed the view that free television with advertising sponsorship can continue to thrive alongside "compatible" pay broadcasting, with the latter "promising to share the tremendous cost burden." He decried predictions by "the prophets of doom," pointing out that in the past they prophesied radio would doom the record business and television would doom radio, magazines, newspapers and motion pictures. Mr. O'Neil claimed "compatible" pay television presents a way to provide out-ofhome entertainment not normally found on free tv at a more economical cost to viewers, eliminating fringe costs for transportation, parking and baby-sitters. The savings in money and time, he said, will permit more leisure hours for free tv, radio and reading. The failure to permit pay television via the airwaves, Mr. O'Neil said, will result m a "direct burden" to the viewing public in two principal ways: "The higher cost of transmitting the program by closed circuit wired systems will result in a much higher price for the entertainment delivered. "Insofar as the control of the transmission of closed circuit wired television will give effective control of talent and events which are likely to be used for either pay or free television, the closed circuit wire system operators will soon have control of all of the program elements of telecasting, whether it be free or toll." Mr. O'Neil gave no indication of which toll tv system developers his company has approached. Mr. O'Neil is reported to be a stockholder in Skiatron Electronics & Television Corp., New York, developer of the "SubscriberVision" system of pay tv. Several years ago WOR-TV conducted a series of experiments in conjunction with Skiatron. Treyz Lines Up ABC With Anti-Toll Camp Oliver Treyz, vice president in charge of ABC-TV, last week put ABC in line with the other networks in a stand against pay tv. Mr. Treyz' words echoed those of his boss, AB-PT President Leonard H. Goldenson, who told an AB-PT stockholders meeting in 1955 that such a stand would be taken. [Lead Story, May 23, 1955]. At that time, Dr. Frank Stanton, president of CBS Inc., voiced that network's opposition to "hi-jacking the American public into paying for the privilege of looking at its own tv sets." [Lead Story, May 23, 1955]. In a speech at Pittsburgh last month, NBC President Robert Sarnoff stressed NBC's opposition [Lead Story, Oct. 28]. Speaking before the Minneapolis Ad Club Nov. 7, Mr. Treyz outlined the rise of ABC this year as a third competitive network. This competition could not exist if pay proposals go into effect, he stated. Mr. Treyz' reasoning: ABC could not bid against pay tv entrepreneurs for the programming which has put it into a competitive position. Citing ABC's $3 million expenditure this year for Maverick, he explained that the network would not have had the opportunity to buy the program at those figures in competition with a pay tv group which had signed up even a minimum of 5% of the people. "The suggested experiments in toll or pay tv will kill networ-k television as we know it." If a pay system should become a reality, however, Mr. Treyz intimated that the net Broadcasting MR. TREYZ