Broadcasting Telecasting (Apr-Jun 1958)

closed circuit BIG YEAR FOR FILM • Recession, depression or whatever it is, major tv film syndicators are turning in neat sales gains. They're talking now in terms of $100 million-plus gross in U. S. this year from syndicated films alone (excluding hot-selling feature films), as against $80-some million in 1957. Coincidentally, CBS-TV Film Sales, for one, reportedly enjoyed first-quarter gross 75% ahead of same 1957 period, is estimating 1958 gross may exceed $15 million compared to less than $10 million last year. Trouble is, despite booming business, syndicators look for relatively little net gain owing to increased union and other costs. • National Telefilm Assoc. is mulling even greater diversification. On top of present interests, which include station ownership, film production, theatrical films, etc., in addition to NTA Film Network and tv film syndication, it's considering getting into records field either through formation of own company or buying into existing firm. • RESPITE o it won't be FCC on firing line when House Legislative Oversight Subcommittee resumes its hearings within next month. According to Chairman Oren Harris (D-Ark.) Committee next will tackle Securities & Exchange Commission and Federal Power Commission. Meanwhile, committee investigators are still checking FCC files, preparing for possible resumption of inquiries into comparative tv cases. Among other cases and highest on committee's priority list for extensive investigation and hearings, are grants of ch. 5 Boston (to Herald-Traveler-WHDU) , ch. 13 Indianapolis (to Crosley Broadcasting Co.), ch. 4 Pittsburgh (to Television City Inc.) and possibly St. Louis ch. 1 1 to CBS. • FCC commissioners shy from commenting publicly on Harris Oversight Report [Lead Story, April 7] but one and all freely admit privately that they are relieved and grateful that no names were mentioned. When asked for comments on report, all shake their heads and with slight smirk murmur "no comment." • SMALL CHANCE • While FCC Chairman John C. Doerfer is determined to get early action in 13-year-old clear channel case at meeting today (Mon.) it's doubted whether decision can be reached, even to proceed with rule-making (story page 52). Staff proposal was to duplicate half of existing 24 1-A (fully clear stations) on coasts and in Chicago, reducing them to 1-B status, with remaining dozen, largely in interior and independently owned, allowed to increase power from 50 kw to minimum of 500 kw and maximum of 750 kw. There's no assurance now thai FCC will follow staff recommendations on clear channels. There's disposition to approve reduction in number of 1-A's but to withhold action on power in excess of 50 kw. In any event, no final action can be taken, and at most, FCC might ask for proposed rule-making, thus inviting comments. Clear Channel Broadcasting Service will buck any proposals to reduce number of 1-A's. • PLOWED BACK • Wall St. sentiment is that profits from sale of Paramount Pictures Corp. pre-1948 backlog to tv ($50 million sale to Music Corp. of America) will be used for financing expanded production of theatrical features. Cash resources will be conserved, according to investment advisors, until additional proceeds are received from library sale (payments are on long-time basis). • Film is not only industry receiving hypo from broadcast revenues, say these investment experts. Such companies as Time Inc. and Meredith are cited as entities in publishing which are offsetting declining space advertising revenues with profits gained from diversification into radio-tv station ownership, and predict "handsome profits" from this source over long-range period. NO YMCA FOR FCC • Commissioners planning to attend NAB convention in Los Angeles April 27-May 1 are breathing easier — financially, that is. They have opinion from Associate General Counsel Edgar W. Holtz that special authority to spend up to $25 a day on itemized basis in "exceptional circumstances" applies to NAB attendance. Reasoning is that commissioners have to stay at convention hotels, that cheapest rates are $12 daily, and that commissioners should not be forced to dip into own pockets for other expenses. Government normally pays transportation plus $12 per diem on unitemized basis. It was feared trip would cost each commissioner about $150 outof-pocket. Problems of small market tv stations, notably those involving microwave relays and network interconnection, will be discussed at special meeting to be held April 30 in Los Angeles in conjunction with NAB convention. Harry C. Butcher, owner of KIVA (TV) Yuma and KIST Santa Barbara, as chairman of Small Markets Committee of CBS-TV Affiliates Assn., has called meeting. At CBS-TV Affiliates Assn. meeting in Washington last January, resolution was adopted citing "wide latitude of charges and quotations of charges" by A T& T and its subsidiaries for services of a nearly identical nature. MADE THEIR POINT • While "opposition" is yet to testify, consensus is that witnesses heard so far by FCC on Barrow Network Report have established beyond reasonable doubt necessity for retention of option time (contrary to staff recommendation). Best overall impression for option time need, according to observers both within and outside FCC, was made by NBC in its depth presentation. • FCC has pretty well washed out implications of collusion between networks and stations on option time clearances, national spot rates and other purported violations of existing rules covered in Barrow Report. FCC has renewed several licenses, has held "no case" in questions involving other stations not yet up for renewal. • DETROIT'S DILEMMA • From agency viewpoint automobile manufacturers are more perplexed than ever in deciding in advance how to budget for 1959 models for network television. To complicate economic indecision is fact that tv planning now comes earlier in year. Facing Detroit is uncertainty over (1) U. S. economy, (2) possible auto union trouble and (3) first quarter sales slump for most '58 models. Add to this factor of foreign auto sales in U. S. and fact that Detroit works on theory of basing budget on expected unit car sales. • Among new gimmicks at NAB convention exhibits in Los Angeles will be "Blue Box," said to crowd 150% of program content into 100% of time. Developed by Electronic Appliances Inc., box can compress 30-second tape program into 20 seconds with minimum change in tone quality, according to makers. • RIVAL FOR BBC? • British radio, which has been state controlled and non-commercial from start, operating under auspices of BBC, is bound to have commercial competition along lines of that being provided in television by Independent Television Authority. Authority: Sir Robert Fraser, director-general of ITA. He ascribes reason for delay as being present preoccupation with commercial tv. • Schedule dates for NCAA national football telecasts this fall may pose problem for NBC -TV in sale of sponsor rights. At least one prospective advertiser is balking because block of four regional dates is concentrated within five-week span in NCAA schedule, which would disrupt sponsorship continuity during traditionally heavy selling season. Some agencies contend schedule is not up to last year's standard in client appeal. Regional tv dates are Oct. 18 and 25 and Nov. 8 and 15. Broadcasting April 14, 1958 • Page 5