Broadcasting Telecasting (Jan-Mar 1960)

CBS VIEWS CATV Local duplication draws network fire A tv network has taken a firm position on community antenna systems: it is against catv where the cable company duplicates the programming of the local on-the-air tv station. It also emphasized that it has property rights in its programs and has never granted permission for its programs to be picked up by a community tv system. The stand was taken earlier this month by Richard S. Salant, CBS vice president, in a March 7 letter to the mayor of Scottsbluff, Neb. The communication resulted from a request by William C. Grove, general manager of Frontier Broadcasting Co., which operates CBS-affiliated ch. 10 KSTF (TV) in Scottsbluff. Mr. Grove said that an application for a catv franchise in Scottsbluff was anticipated. No application had been filed as of week's end. Mr. Salant made the property rights point at the outset: "First, I would like to emphasize that the CBS Television Network has certain property rights in the network programs which it transmits. We do not believe that a community antenna system can legally pick off the signals which comprise a CBS Television Network program without permission of CBS. And CBS has never yet granted such permission." Widest Choice • CBS believes, Mr. Salant said, that the best system of television is the one which gives the widest possible choice of programs "without the audience having to pay any sums in addition to what they paid for their television sets and for the maintenance of those sets." Catv operations achieve some of these objectives, but defeat others, Mr. Salant said. In a community where there is only one local tv station, he observed, the community antenna system does permit a choice by bringing in multiple signals. But the catv system may actually cut down the choice of programs to the people, the CBS vice president stressed. This would occur, he said, when the catv operation duplicates the programs being carried by the lone local station. This endangers the survival of the local tv outlet, he pointed out, because advertisers will find no need to buy the local station if their messages are being carried on the cable from another out-of-town station. He continued: "Thus, there is a tendency for community antenna systems which duplicate at least some of the programs carried by the local television station to deprive that local station not only of important programming but also of the economic revenues which are necessary to permit it to survive. And if the television station cannot survive because of these circumstances, it will follow that all the people in the area served by the station who cannot afford to subscribe to the community antenna system or who are geographically beyond its reach will lose all tv service. "Further, of course, if a community antenna system drives out the local over-the-air television station, the area served by that station will be deprived of all local programs dealing with news, local public affairs and other means of local television expression." The communication was considered by the Scottsbluff council but, since there was no application pending, it was filed. First Public Stand • The CBS position was believed to be the first official public stand taken by a network on the matter of catv operations. NBC, it is understood, some years past told catv systems they could not have permission to use programs, but nothing was ever done about this. In 1954, KOA-TV, the NBC affiliate in Denver, attempted to arrange "affiliation" agreements with three cable companies, in Casper and Laramie, Wyo., and in Sterling, Colo. The station asked the catv operators to sign an agreement providing that its signals be used without deletion of commercials. It also asked that a minimum of 25 hours weekly be used, with at least 14 hours after 6 p.m. No payment was to be required. The catv systems refused to sign this agreement. The chairman said that although the FTC had made advertising agencies as parties to a complaint where it appeared that they were either wholly or partly responsible for false advertising claims, the commission has not yet so named the "publishing" medium. However, he warned, "there is no express statutory exemption for media." There are no laws which give media "general immunity from FTC jurisdiction." The public and moral responsibility of advertisers, Chairman Kintner said, must be shared by the media. "Whether this sharing of public and moral responsibility also should involve a sharing of legal responsibility to the extent that media are cited as parties respondents ... is another matter," he said. Special tv network to cover conventions Plans for special independent tv network coverage of the Democratic and Republican nominating conventions are underway involving WGNTV Chicago, United Press International, Canadian Broadcasting Corp. KJEO-TV Central California's # 1 Prime Time Station with proof from the viewers themselves:* Channel *ALL f DAYS A WEEK DELIVERS MORE VIEWER HOMES FROM 6 to 10 P.M.! (Source: Current ARB with 34.8 Rating) Yet KJEO-TV rates are right with the lowest in the area. See your H-R Representative early for your best prime time buys. J channel Fresno, California J.E. O'Neill — President Joe Drilling — Vice President and General Manager W.O. Edholm — Commercial Manager See your H-R representative fj'R-^^ BROADCASTING, March 28, 1960 131