Broadcasting Telecasting (Oct-Dec 1957)

PROGRAM SERVICES CONTINUED NETWORKS what programs, if any, it would pay to see. Numerous other witnesses, including representatives of labor groups whose approval or rejection of the toll tv idea was pretty much of a standoff, appeared at the council meeting. The meeting ran into the afternoon well past the normal adjournment time, with most of the council members expressing their views before the vote was taken. A motion to postpone action until March 31, 1958, was defeated by the same eight-to-six vote that, a moment or two later, approved the ordinances. Hays Quits as Manager Of Telemovie Project Is the nation's first pay tv operation in trouble? The resignation of Phil Hays, manager of the Bartlesville, Okla., theatres owned by Video Independent Theatres Inc., and of Video's telemovie project because of "policy differences" may be one straw in the wind, according to some observers. Bartlesville is where Video Independent established Telemovies — a method of piping motion pictures to home tv receivers via wire lines. Subscribers are charged $9.50 per month, and receive a choice of first run and re-run movies on two vacant channels on their tv sets. "Mr. Hays' resignation had nothing at all to do with the Telemovies project," Henry Griffing, president of Video Independent, said last week. "His leaving was due to personal reasons and other circumstances," the head of the southwest theatre chain added. There are more than 550 TM connections in Bartlesville, Mr. Griffing said, "and although this doesn't sound too exciting, it is more than we projected for this fourth month of operation." TM began Sept. 2. But more outspoken was Kenneth Blackledge, Video division manager in the Bartlesville area: "Frankly, we're disappointed," he said, "but we're not giving up." Mr. Hays, a 25-year-veteran of the motion picture business, was manager of Video's Bartlesville theatres (two conventional and one drive-in) and also of its TM project. He refused to discuss the reasons for his resignation, except to iterate that it was caused by policy differences. Mr. Griffing insisted that he is not discouraged by the showing of the TM project in Bartlesville. He repeated that Video intends to continue the wired movie operation through 1958 to determine completely whether this is or is not a means of recapturing the motion picture audience. Video has said that 2,000 connections would ensure the success of Telemovies. Bartlesville has about 8,500 tv sets. In the four months TM has been in existence, Mr. Griffing pointed out, Video's Bartlesville movie gross revenues have increased by one-third. Mr Griffing declared this is based on other cities in which Video has theatres. "This has not increased our profits," the Video president emphasized, "but it does show that TM has increased our income." He pointed out that movie attendance is down severely throughout the nation and that Bartlesville is no exception. Temporarily replacing Mr. Hays in Bartlesville is Wayne Wallace, an advertising and promotion expert. He also will handle a stepped up TM promotion campaign, it was announced. Video said a permanent successor to Mr. Hays will be named after the first of the year. Cowley Succeeds Houghton As Muzak Corp. President Election of Charles C. Cowley as president of Muzak Corp., New York, was announced last week by Board Chairman Jack D. Wrather. Mr. Cowley formerly was executive vice president in charge of franchise operations for Muzak, which records and programs background music for offices, plants and public places in more than 5,000 cities and towns in the U. S., Canada and abroad. He succeeds Harry E. Houghton, who recently sold his interest in Muzak. Mr. Cowley joined Muzak in 1945 as field service director and under his direction the firm pioneered the development of an automatic music transmission system controlled by pre-recording magnetic tape. Muzak franchises grew from 14 in 1945 to more than 150 today. Estey Forms Tel National Inc. Don Estey, formerly executive vice president of Song Ads Inc., has announced the formation of Tel National Inc., to provide a new type of transcription library service to radio stations. Tel National is located at 5880 Hollywood Blvd., Hollywood, Calif. The new library, Mr. Estey said, will be constructed "so that the local station sales manager can submit to a local retailer a complete advertising campaign customized specifically for him." PROGRAM SERVICE SHORT Association Films Inc. is offering quarterhour public service film produced by American Institute of Certified Public Accountants in cooperation with Internal Revenue Service titled, "Helping the Taxpayer." Gains From Tv Partially Offset AB-PT Decline in Theatres Though fourth-quarter earnings of American Broadcasting-Paramount Theatres Inc. will be lower this year than last, tv earnings for AB-PT's ABC division are ahead for the current quarter, the company's president, Leonard H. Goldenson, informed stockholders last week. "As we reported to you in October," Mr. Goldenson wrote in the dividend statement, "our nine months operating earnings were 91 cents a share compared with $1.31 in 1956." Dividends of 25 cents a share were payable Friday to holders of record Nov. 29. Discussing ABC-TV's growth, Mr. Goldenson noted that "the efforts that have been applied during this past year in the television area are now being reflected by the improved competitive position that ABC is attaining. Indicative of the improved calibre of programming and the addition of new affiliated stations, ABC is registering the most impressive television network gain in audience growth — a 56% increase in circulation over last year as documented by the A. C. Nielsen Co." ABC-TV took a full-page ad in The New York Times Thursday to claim that 56% more homes watch ABC-TV than a year ago per average evening minute, that ABCTV was one of the two networks — out of three — that grew in 1957, and reasoned that this was due to the addition of new affiliates and "better programs." Yet, said Mr. Goldenson, "this improvement ... is not enough to offset the decline in theatre business, primarily as a result of a lack of box office pictures in the fourth quarter and the effect of the flu epidemic on theatre attendance, and the costs necessarily incurred during this quarter in creating a new program structure for the ABC radio network." Mutual Reports Rising Demand For Affiliations With Network Four-month status report on Mutual's affiliation activities since the new management group assumed control of the network was released last week and showed that four stations have signed with MBS and 22 other outlets have requested affiliation applications. Mutual affiliates now number 461. Charles King, station relations director for MBS, said 49 stations applied for affiliation since last Aug. 8, but 23 were rejected because they are in the primary coverage area of other Mutual stations. Affiliation contracts, he said, have been sent to 22 stations which are eligible. New affiliates, already signed, KLMS, Lincoln, WTOD Toledo, WFVG Fuquay Springs, N. C, and WCGC Belmont, N. C. Mr. King cited the network's new affiliation contract formula and its news broadcasting activities as two of the major reasons independent outlets are seeking association with Mutual. The network-station contract calls for a minimum in option hours and expanded use of barter-type clearances for personality, dramatic, sports and special Page 70 • December 23, 1957 Broadcasting