Broadcasting Telecasting (Oct-Dec 1957)

PROGRAM SERVICES continued TRADE ASSNS. of pay-tv as a direct threat to their existence. "The theatre owners have got their heads in the sand. . . . They just don't seem to realize that the past seven or eight years have witnessed a great social upheaval in American entertainment." He said that Skiatron would not try to "beat out" any exhibitor in the showing of motion picture film, that Skiatron would enter into the bidding with the theatre owners for theatrical first run films and that, "both of us could show the same picture at the same time . . . but of course we would probably show it cheaper." Nor will Skiatron try to put its competitors in pay-tv out of business. "As a matter of fact," Mr. Fox declared, "we will even lease our product to rival firms." Asked to comment on charges that when Skiatron becomes fully grown it will "go commercial," Mr. Fox "promised" that "so long as I have something to do with this company, Skiatron will not show commercials. We don't subscribe to asking for double payment." Mr. Fox also touched upon his recent contract with Rediffusion Ltd., London, whose terms call for the use of Rediffusion's "technical know-how" in developing the Skiatron system in the Western Hemisphere. The 21 -year agreement is "in no way conflicting" with the work of Skiatron Electronics, parent firm of Skiatron Tv, and has met with "the complete endorsement" of Skiatron President Arthur Levey. Rediffusion, a toll tv pioneer, already has established pay-tv operations "profitably" in 35 cities throughout the world and "with their technical operations coordinated with our own engineers," Mr. Fox asserted, "Skiatron is now free to establish franchises with local operators for joint development of subscribers in their specific areas and concentrate on the acquisition and development of programming." Asked to detail some of the programs he and Mr. Hurok already have prepared, Mr. Fox demurred, saying, "Why should we make them public now? It would just tip off the networks who would rush out, sign the talent and air it, then say, 'See, we're giving it to you for free.' " UP Offers Tv Review Column The United Press began feeding its first tv review column on its wire last week. UP's reviewer is William Ewald, who will be writing for afternoon newspapers Monday through Friday. Mr. Ewald has been writing a special tv-radio news column for UP for the past two and a half years. UP also will continue to carry personality features about tv performers six days weekly for afternoon papers, four to be written by Vernon Scott who is in Hollywood and two by Fred Danzig in New York. Phoenix Outlets Oppose Pay Tv A hearing was held Thursday before Maricopa County Board of Supervisors, Phoenix, Ariz., on the application of Direct Wire Service for a wired television franchise in the county. The firm recently was granted a certificate by the Arizona Corporation Commission to operate a toll television sys tem as a public utility in Maricopa County. Metropolitan Phoenix Broadcasters Assn. is considering ways of meeting this potential competition. Tom Chauncey, KOOLTV, said the city's broadcasters held a meeting Dec. 5 to consider plans. C & C TV Offered Option To Buy Skiatron Tv Control An offer to C & C Television Corp., New York, of an option to acquire 87 Vz % of the capital stock of Skiatron Tv Inc. and Skiatron International Corp. has been made by Matthew Fox, president of and a substantial stockholder in C & C Television and the Skiatron companies. The latter organizations hold world-wide rights to a subscription tv system as perpetual licensees of Skiatron Electronics & Television Corp., New York. The terms upon which the option may be exercised will be submitted to C & C Tv stockholders at the company's annual meeting next spring. If the option arrangement is approved by stockholders, it would last until 1961. L. A. Council May Approve Wired Pay Tv This Week The Los Angeles City Council this week may take the final step necessary to authorize the installation of closed circuit toll tv within the city. Or it may not. In October, after months of deliberation, the council granted franchises to three applicants for toll tv systems [Program Services, Oct. 21]. In November, the city attorney's office accepted bonds of $100,000 each from two of the applicants — Skiatron Tv Inc., and (jointly) Fox West Coast Theatres and International Telemeter Corp. [Program Services, Dec. 2]. On Dec. 3, the council heard the first reading of a city ordinance that would put these two franchises into effect [Program Services, Dec. 91 Last Tuesday the ordinance was to have been read for the second time. Instead, the council voted to postpone the reading for three months. This would have meant that no installation could be started before midMarch at the earliest — far too late to provide even token service by the opening of the 1958 baseball season in April. Jerome Doff, vice president of Skiatron, which reportedly has an agreement for exclusive telecasting rights to the games of the Los Angeles Dodgers for the 1958 season, appeared before the council on Wednesday and assured members that toll tv would provide new programming and would not deprive citizens of programs now seen on free tv without payment by set owners. The council then voted to shorten the delay from three months to one week and to schedule the final reading of the ordinance for this Wednesday. Capitol Records Buys Angel Capitol Records Inc. has purchased Angel Records from Electric and Musical Industries Ltd. of England for an undisclosed sum. The transaction was announced by Glenn E. Wallichs, Capitol president. Angel Records is the American subsidiary of the British recording firm. TVB TELLS 1 ,700 OF TV'S MERITS • 'Vision of Television' lauded • N. Y. official sees 'Tv City7 An estimated 1,700 advertiser, agency and television people watched and applauded Television Bureau of Advertising's "Vision of Television" presentation at a breakfast meeting at New York's WaldorfAstoria Hotel last Tuesday. They also heard a New York City official promise that New York "will remain the television capital of the world and we in city government stand ready to work with you to maintain this end." Welcoming the New York group, William R. Peer, executive secretary to Mayor Robert F. Wagner, scoffed at oft-circulated talk that tv production is moving from New York to Hollywood. "They may have one of our baseball teams," he said, "but they don't and won't have tv. . . . We in New York plan to keep the title, the business and the heart of television right here." He continued: "The truth is that New York has every intention of maintaining its leadership in this great industry. . . . We want you here and we firmly believe that you want to stay. To this end we shall do everything in our power to meet your desire. . . . Television production and sales have centered here, increased in recent years, reaching an alltime high last year. I don't think that it is too far-fetched, to keep this spiral turning upwards, to envision one all-inclusive television city. A city within the greatest city, large enough to house all needed facilities for now and the future — the city within New York that television built." TvB's cellomatic presentation, updated since its showing in Chicago late last month [Trade Assns., Nov. 25], was to be displayed for Philadelphia advertising and tv executives last Friday. It makes the point not only that television provides greater coverage at less cost than print media, but also that people who spend the most time with television also spend more for advertisers' goods and services. Research, the presentation notes, has shown repeatedly that "the homes that view the most, buy the most . . . drive their cars the most . . . smoke the most cigarettes . . . drink the most frozen juices . . . drink the most beer . . . plan to buy the most electrical appliances. . . ." Comparing tv commercials with newspaper ads, TvB President Norman E. Cash — who with TvB salesman John Sheehan conducted the presentation — said, "We estimate that the average 20-second television spot gives you four full television pages. The average minute commercial gives you up to 10 television pages. Thus, when the average full-page newspaper ad requires only five or six television pages to show the same thing, you have other space, extra space, on television . . . with sound on top of picture." Mr. Cash answered the complaint that "tv's fine, but I need color." Color is indeed Page 84 • December 16, 1957 Broadcasting