Broadcasting Telecasting (Oct-Dec 1957)

closed circuit AB-PT GROWING PAINS • AB-PT is still grappling with top level management problems to keep pace with its expanded broadcasting activities, notably in tv. Firm has invested estimated total $60 million in new programming in past four years, and board of directors is pondering sharper delineation between its broadcasting and motion picture exhibition and production operations, now headed in entirety by President Leonard H. Goldenson. Consideration is being given to creating overall head of both tv and radio operations, reporting to board of directors which Mr. Goldenson also heads. • Along with other corporations, and despite great strides it has made businesswise, AB-PT stock has suffered severe reverses during past few months. From 1957 high of 247/8 , stock reached low of ll7/s, and on Friday was quoted at HV2. Among other broadcast stocks, CBS (A) had 1957 high of 36'At and was quoted Friday at 24V2. Storer Broadcasting Co. had 1957 high of 29V4 and was at 19% Friday. • LONGER PULSE COUNT • New audience measurement technique has been tested by Pulse Inc., which expects eventually to use it in all its local reports. It's designed to eliminate inflationary effects of special events, big one-shot shows and special promotions. And it's relatively simple: measure for four weeks per month instead of one. Pulse is so pleased with results of first four-week run, done in Boston, that it was getting out letters over past weekend to stations in New York and Los Angeles — next targets — outlining plan and soliciting reactions. Though "modest" increase in charges will be sought later, cost to stations at outset will be same as for one-week reports. McCann-Erickson's Chicago office will announce structural realignment this week following departure of Robert Brewster, vice president in charge of radio-tv, to J. Walter Thompson Co. as senior group head. Plan is to bring timebuying, programming and other broadcast activities under supervision of media director (Howard A. Heller, vice president). COMMAND DECISION • When NARTB board (it will be NAB then) meets for its winter session in Phoenix, Jan. 22-24, it may be called upon to consider changes in trade association's top echelon. President and Board Chairman Harold E. Fellows, who has carried tre mendous burden during his six and half years at helm, has been ordered to slow down by his doctors [Closed Circuit, Nov. 18]. Mr. Fellows may recommend changes at executive level, possibly looking toward appointment of second-in-command as administrative vice president. 9 It's assumed that Mr. Fellows' recommendation will propose promotion from within. There has been no second-in-command since Robert K. Richards resigned as administrative vice president three years ago to enter private public relations practice. Holding co-equal status as association's vice presidents are Thad H. Brown Jr., in charge of television, and John F. Meagher, in charge of radio. SecretaryTreasurer Everett E. Revercomb is fiscal officer appointed by combined boards. • UHF TAX • Executive session of House Ways & Means Excise Tax Subcommittee today (Monday) will consider removal of 10% excise tax on all-channel tv receivers Committeemen reportedly are concerned over loss of revenue if tax is repealed. On plus side, proponents, including Sen. Warren Magnuson (D-Wash.) and Rep. Oren Harris (D-Ark.). chairman of two respective Commerce Committees, point out that taxes on increased sales of uhf sets with resultant increase in advertising and tv stations, will more than offset any loss from removal of tax. Four identical bills to eliminate tax are before Rep. Aime J. Forand's (D-R. I.) committee. • Portents of activity on copyright music controversy by Senate Commerce Committee seen in pilgrimages to New York by Nicholas Zapple, professional staff member of committee, during past few weeks. While Mr. Zapple has declined comment, it's understood he has visited ASCAP, BMl and networks. Songwriters Protective Assn., made up of ASCAP writers, last session petitioned Senate committee to investigate what it alleged to be broadcast performance monopoly through BML This followed now famed House Celler Committee onslaught against BMl. • ONE-TWO PUNCH • Despite intensive opposition of Zenith and others, AFL-CIO convention in Atlantic City last Thursday again unanimously adopted resolution opposing pay tv. Two years earlier, AFLCIO had adopted somewhat similar antipay tv resolution. New action, which had full support of such unions as IBEW, NABET, IATSE, AFTRA, AGVA and RTDG, said pay tv would "destroy free tv" and called upon AFL-CIO to notify Congress and FCC of organized labor's opposition. It "urges the defeat of the efforts of those private advocates of pay tv who seek to deprive the American public of its rights to unrestricted and free use of the public broadcasting privileges." • That cooperative cost-cutting venture that President Paul Roberts of Mutual proposed to ABN [Closed Circuit, Dec. 9] went lot further than first reports indicated. Among other things, Mr. Roberts offered to buy ABN. But President Leonard H. Goldenson of ABN's parent AB-PT has indicated total lack of interest in selling, saying there's "not a chance" he'll dispose of radio network. Mr. Roberts' proposal that MBS and ABN cut some financial corners by sharing AT&T lines also seems apt to fizzle. ABN officials reportedly aren't interested in that either. • NOTHING DRASTIC • Don't look for radical cut in number of program categories in station license renewal forms, which FCC has been studying past six months at request of broadcasters who feel present logging does not take operating practices into account. Commission met on subject again last Thursday and indications are that categories will be revised somewhat to show differences between radio and tv and between daytime and nighttime radio. Also settled, it was learned, was inclusion of provision to permit credit for educational broadcasting, even though program may not hew strictly to that classification. • While FCC was prepared to vote last Wednesday on proposed $3.5 million sale of eh. 13 WATV (TV) and its sister stations, W A ATAM-FM Newark-New York, to National Telefilm Associates (with favorable staff recommendation), it decided to delay consideration until it could do so in conjunction with proposal of Board of Regents of State of New York to transfer ch. 13 to educational, rather than commercial. This is departure from normal Commission procedures since heretofore transfer cases have never been held up to await rule-making. (See page 56). • MOBILE RADIO • Mutual blueprinting "cross-plug" promotional plan for its affiliates, directed at auto radio audiences. Tentative approval reportedly given by 50 eastern affiliates where plan will begin after Jan. 1. Plan will work like this: If auto radio is tuned to Philadelphia station, announcer there during traffic news show will ask listener to twist his dial— once Philadelphia signal fades— to other dial positions, depending on his direction, to pick up nearest Mutual affiliate. Broadcasting December 16, 1957 • Page 5