Broadcasting Telecasting (Oct-Dec 1957)

closed circuit' INSTANT RATINGS • Secret of breakthrough in long hunt for instant audience rating system is invention by American Research Bureau of tiny electronic gadget that cuts cost of collecting data to oneeighth that of past experiments (story page 34). Network and advertising executives, who have had confidential look at ARB system, have gone overboard in their enthusiasm. Instant ratings show audience measurements within seconds on electronic board that can be installed in offices of clients. ARB can extend service to several major cities in short time, justifying national ratings. Service may be too expensive for medium, markets except on occasional basis as supplement to diary ratings. • One advantage seen in ARB's fast service is elimination of padding during "rating week," when intensive promotion and programming affect station rating points. Also, it's figured, instant ratings will answer charge that diary reports are unbalanced because they may be made out after school by children in diary homes. After more than year of development work, ARB will unveil system in actual operation at Thursday news session in New York. • RATINGS RATES • After approximately year of negotiations, A. C. Nielsen Co. has notified tv networks they'll have to sign new contracts if they want to continue receiving its tv ratings service after first of year. New prices — which are reason negotiations have been drawn out — reported to be 70 to 90% higher than those under current Nielsen contracts. Networks reportedly haven't made up minds on new contract, and Nielsen is said to have indicated it'll grant few weeks grace beyond Jan. 1 deadline. Meanwhile, as they ponder new contract, networks presumably also have one eye cocked on ARB's new but still officially hush-hush automatic and almost instantaneous ratings plan, now that word of plan is beginning to circulate (see above and page 34). Terry Clyne, vice president in charge of radio and tv department of McCann-Erickson, New York, slated to be upped to higher position in agency, which is No. 1 in radio-tv billings this year. He will continue to supervise Bulova watch and Liggett & Myers accounts. Reportedly Mr. Clyne will take over duties formerly handled by Emerson Foote, executive vice president who left McCann-Erickson and is now with Geyer Adv. • SLEUTHING SPEED-UP • Vigorous efforts being made by Moulder Committee investigators to button up cases of purported improprieties — or worse — by members and staff of FCC and by successful tv applicants in controversial cases. Presumably because of approach of new session of Congress, redoubled efforts to persuade disgruntled "broadcasters to "inform" are being made by Bernard Schwartz, chief counsel and staff head of committee, and by Baron J. Shacklette, committee's ace chief investigator. On staff agenda for study reportedly are television station cases in Fresno, Miami, Indianapolis, Minneapolis, Boston, Albany, St. Louis and Seattle. • Armed with FCC expense account records and microfilm recordings of all incoming and outgoing telephone calls at FCC, along with expense records of NARTB covering FCC personnel attending conventions and regional meetings, Moulder investigators are comparing accounts for duplication, checking purpose of phone calls and seeking supporting statements. Mr. Shacklette and Joseph P. O'Hara Jr., son of Republican congressman from Minnesota, were seen entering CBS headquarters in New York Thursday afternoon. Mr. Shacklette has been to West Coast and Mr. Schwartz, has been contacting broadcasters by telephone during past week. e ABN-MBS TALKS • Unique sort of working arrangement between American Broadcasting Network and Mutual may result if negotiations now in developmental stage pan out. Mutual President Paul Roberts called on Leonard H. Goldenson, president of ABN's parent AB-PT, last week to broach plan for reducing operational costs via joint effort. More efficient use of AT&T lines through ABN-MBS cooperation presumably is one feature of plan, now being explored at other levels but expected to be pursued further by Messrs. Roberts and Goldenson when more spadework has been done. • Despite earlier avowal that American Broadcasting Network would not sell time in units smaller than five-minute segments, President Robert E. Eastman reportedly has decided that to "meet the competition" ABN must enter small-unit field. It's understood that new policy envisions offering of both 10-second and 30-second participations. • SUBLIMINAL REGULATION • Subliminal perception continues to have FCC in quandary. There appears to be no doubt that FCC can regulate it, but there is some question whether FCC can ban "subconscious impression" advertising outright. One staff suggestion is that before SP is used, text of message must be read to audience. And after SP transmission, closing announcement using text likewise would be required. Another staff proposal is that texts of all contracts with advertising agencies placing SP business be filed in advance with FCC just as Commission proposes to require of subscription tv contracts. • Charles W . Tennant Jr., advertising manager at Miles Labs, Elkhart, Ind., heavy broadcast advertiser, is resigning to join J. Walter Thompson Co.'s Chicago office around Jan. 1. Among accounts he will handle is Phar ma-Craft Co. (Coldene cough syrup, deodorants, nasal spray), which currently is spending about $4 million in broadcast media (chiefly network radio-tv and spot radio). Mr. Tennant, who functioned at Miles under Perry Shupert, vice president in charge of advertising-sales, was previously with Geoffrey Wade Adv., Chicago, as creative director. • HIGHJACKING PROBE • FCC. or at least certain members of it, are going to take closer look henceforth at "drop-outs" in competitive cases for broadcast facilities, wherein surviving applicant is given grant after competitive applicants are paid what is called "out-of-pocket" expenses. In instances where payments go beyond mere reimbursement of expenses (and there have been cases involving hundreds of thousands) certain commissioners are expected to insist upon proceedings. One member, in recent FCC discussion, described practice as "highjacking" and observed it has become so commonplace that participants feel it's perfectly proper course which has FCC's blessing. • Robert Maxwell, producer of Lassie on CBS-TV, expected to sign "exclusive" contract with Television Programs of America shortly. Mr. Maxwell presumably will be taking advantage of offer Milton Gordon, head of TP A, announced when he bought out firm from his partner, Ed Small, several months ago: that TPA would offer "capital gains and stock deal" to outstanding producers and stars for exclusive activity. • EDITORIAL PAYOFF • Editorializing on both radio and tv stations is proving effective in audience-building. WTVJ (TV) Miami reports its new 2Vi minute daily editorial on its 6:30 p.m. Ralph Renick newscast shows five-point rating increase since it began last September. Editorials are restricted to local-state issues. Several radio stations have reported excellent audience acceptance of editorials. With increase in editorializing, some station operators are talking up expansion to national and international subjects, but are wary of proceeding without benefit of editorial background service now available to newspapers. Broadcasting December 9, 1957 • Page 5