Broadcasting Telecasting (Oct-Dec 1957)

closed circuit: NEW ROLE • Frank Sinatra reportedly is going into broadcast station ownership with acquisition of KJR Seattle (950 kc, 5 kw), KXL Portland, Ore. (750 kc, 10 kw), and KNEW Spokane, Wash, (790 kc, 5 kw), for between $1.5 million and $2 million. Stations are owned by Mt. Rainier Radio & Television Broadcasting Corp. of which Lester M. Smith and Lincoln Dellar own 50% each. Mr. Smith is said to be continuing in active management of properties. If deal goes through, Mr. Sinatra will be following pattern of another star singer and friend, Bing Crosby, now identified with multi-station ownerships. • Another Hollywood celebrity, Jimmy Stewart, is involved in proposed station acquisition in Fort Worth, Tex. He, along with Paul Taft, general manager and part owner of ch. 11 KGUL-TV GalvestonHouston, and four other Texans, reportedly have closed for KJIM (formerly KCNC) for $139,000. William D. Schueler, commercial manager of WBRZ Freeport, Tex., is one of principals and would become station manager upon approval of transfer by FCC. STORZ UPGRADING • Mid-Continent Broadcasting Co., headed by enterprising Todd Storz, is in final stage of negotiating to buy existing full-time regional in New Orleans to replace its 250 w WTIX, operating on 1450 kc. Upon consummation of transaction, on which there has been preliminary agreement, Mr. Storz is expected to dispose of his present station. Other Storz stations are: WHB Kansas City, Mo.; WDGY Minneapolis-St. Paul, and WQAM Miami. • Revenue of ABC-TV network (excluding owned and operated stations) for six months from October 1957 through March 1958 will be more than double that of corresponding period of 1956-57. And this condition should improve with business already under contract for succeeding six months, it's learned. While ABN, sister radio network, has suffered revenue losses during its transition to new format, ABPT top brass expects this trend to be reversed in 1958 with anticipated acceptance of re-programmed operation. • BARROW BRIEFING • After two days of intensive briefing on Network Study Staff (Barrow) Report last Monday and Tuesday, FCC still has some distance to go before completing indoctrination on far-reaching two-year staff study. Final briefs now are scheduled for Jan. 6-7, but FCC will send interim report to Chairman Magnuson of Senate Commerce Committee by Jan. 3 (90 days after release of Barrow Report, as requested) and is expected to say that FCC will seek comments from licensees, networks and others or institute proposed rule-making before final action looking toward possible changes in rules or regulatory standards. Thus far, it's understood, full Commission has covered only few of eight general classifications set up for Barrow briefing, which could not possibly cover all 1,485 pages of report. Reviewed so far were staff proposals that option time be eliminated, that affiliation agreements be drastically modified, including so-called network control of affiliate rates, and general business and contractual arrangements between networks and affiliates. In broad outline, subjects on which FCC wants briefing, in addition to those mentioned, include mustbuys, multiple ownership and antitrust aspects. • 1957 RINGS OUT • FCC concluded its regular agenda for 1957 at its meeting last Wednesday and will not convene again for regular meeting until Jan. 3. Most members of Commission, however, will be in Washington, and emergency matters will be handled subject to later ratification. Such matters as radio clear channel case, revision of license renewal applications, final briefings on Barrow Report on networks and other controversial proceedings will not be handled as 1957 business but automatically go over to next year. e Thomas J. Dougherty, attorney in law firm of Dow, Lohnes & Albertson, effective Dec. 28, joins FCC Comr. Robert E. Lee as his legal assistant. He succeeds David C. Williams, who has been transferred to FCC's Conelrad section. Mr. Dougherty has been with Dow firm for five years and received his law degree from George Washington U. in 1953. • BIG MARKET PUSH • Brown & Williamson Tobacco Corp., Louisville, reported to be implementing new tv market strategy beginning in 1958, concentrating spot tv efforts in larger cities, where larger smoking populations offer more sales potential. Company reportedly is set to cut drastically number of tv markets in which spots have been carried for Viceroy and Kool cigarettes — which have totaled about 200 — and reallocate budget from secondary to larger markets. Company claims total spot tv budget not being cut, however. Agency for B & W is Ted Bates & Co., New York. Fortune magazine is in process of researching independent radio station operations preparatory to publication of depth article in early 1958. Individually owned independent stations, as well as certain multiple owned outlets, are being covered in upcoming piece. o OLD AND NEW • Interesting phenomenon has turned up in Bartlesville Telemovies operation. Subscribers to the wired cable theatre seemingly make no distinction between first run movies and re-runs. Nonplussed theatremen, to whom playing dates are prime business headache, can only surmise that until people see movie it's still "first run" as far as they're concerned. Telemovies offers first runs on ch. 3, re-runs on ch. 5. • There's no intention of sweetening Telemovies pot with music, news or any other service, Henry Griffing, Video Independent Theatres president, says, until principle of Bartlesville project is proven or disproven. And that is, will people buy "admissions" for movies in home? Video also has number of community antenna systems in its southwestern territory. • DAY OF ARREST • Next to become embroiled in Blue Law enforcement drive, which has Pennsylvania businessmen wondering if they will have to write off Sunday as economic blank, will be populous Allegheny County and Pittsburgh (See page 56). County law enforcement authorities are poised to start clamping down on stores that sell non-necessary goods or services on Sunday. They await final word from state attorney general's office, which has promised it will put power of courts behind drive to keep store doors shut under terms of ancient 1794 criminal law. Backing county drive will be Mayor David Lawrence, of Pittsburgh, along with department stores, powerful Golden Triangle Assn., labor unions and church interests. Arrests have already been made elsewhere in state. • Tone of congressional reaction about drive to take away some of fm band to alleviate non-broadcast services' need for spectrum space has begun to boomerang. This comes, it is understood, following FCC's explanation that there is no proposal now, and none under consideration, to cause fm'ers such alarm (see page 10). Congressmen have been flooded with alarmist letters that Commisson plans to take portion of fm band away. These stem from comments submitted Nov. 25 on present and prospective use of 25-890 mc area. Broadcasting December 23, 1957 • Page 5