Independent Exhibitors Film Bulletin (1959)

COMMERCIAL TV DYING; PAY TV TO REPLACE IT-FORTUNE' Under the title, "TV: The Knight That Failed", FORTUNE Magazine predicted that program mediocrity and the medium's economics would bring about the eventual demise of commercial television, following are excerpts from the article by Richard Austin Smith. The staples of TV today are pap. By and large, the 1958-59 season is compounded of Bathos from Boor Hill, counterfeit cerebration via quiz shows, barbarism from the police blotter, inanity from outer space, monstriphilia from Hollywood's celluloid cemeteries * * *. First, the broadcasting side of the television industry is in a cost-price squeeze * * * Second, television has become a buyers' market, dimming whatever prospects has of increasing profits through increasing its rates * * * Third, the television audience'' is almost at the saturation point * * * Fourth, and perhaps more serious, the audience is getting choosier * * * Fifth, and finally, evidence is mounting that television is something less than all things to all advertisers. The classic instance was hilip Morris' dropping / Love Lit:}, the top show (1955), because it wasn't selling igarettes * * *. Whatever remained of radio's old willingness to risk new formats and get along on modest ratings has all but vanished from TV. The mounting pressure of costs on sponsors and networks alike has weakened the will to experiment. Television, to borrow the phrase of one of its most distinguished producers, Fred Coe (Playhouse 90), is now imprisoned in the "bland norm" of mediocrity. Yet as the medium loses •its capacity to excite, to create, and to lead, its audiences will inevitably shrink. And as audiences shrink, more pressure to stick to "successful" formats and eschew the unknown may well follow, resulting in the disastrous cycle of economic pressure making for shoddy programs, shoddy programs reducing the television audience, smaller audiences increasing the economic pressure ...***. The precipitating incident, however, was the departure of Sylvester L. (Pat) Weaver from the chairmanship of N. B. C. in 1956 * * * The important point is that one man wasn't just lopped off the payroll, an entire programing philosophy was abandoned. Play it small (and safe) replaced play it big, a modus operandi quite in keeping with the viewpoint R. C. A. Chairman David Sarnoff once expounded to critic (John) Crosby: "We're in the same position as a plumber laying a pipe. We're not responsible for what goes through the pipe" * * *. Since TV's appetite for material remains unchanged — it is still the most omnivorous of all media — more and more program must now be supplied by hacks and second-raters * * * The exodus has discouraged the influx of new talent. One after another, "outside" writers of merit have expressed their reluctance to work for the medium. Their reasons range from the censorship objections of Arthur Miller ("On TV you can't speak in an adult way without being censored") to dissatisfaction with television's meager rewards. "The theatre," Maxwell Anderson commented succinctly, "has a much higher reputation for good things and pays a lot more" * * *. Two potential influences hold out some hope. One, of course, is wider use of color TV * * * The other potential influence * * * the 1958-59 season will mark the commercial advent of videotape as a means of preserving programs for TV reproduction * * *. In the final analysis, however, it may be that television's economics :;: :;: * will continue to impose mediocre programming * * * In such an eventuality, what television has not been able to accomplish internally will likely be forced upon it from the outside. The curative force: Pay TV * * * the restraints imposed on television by its own commercial interests will simply result in the raising of a new empire, the competing one of Pay TV, and the crowning of a new set of kings. V-L Analyzes Film Companies Following are highlights of Value Line's analyses of the major film companies: COLUMBIA ". . . Management's efforts to cut costs have begun to show up in company financial statements . . . Present indications are that a major upsurge in profits will take place during the second half of the fiscal year (started July 1) . . . We look for an early resumption of dividend payments . . ." DECCA RECORDS (UNIVERSAL) ". . . In December of 1958, Universal disposed of its Hollywood real estate in a 'sale and leaseback' transaction. The sale price was $11.3 million . . . We believe Universale management will be able to put the money to good use . . . Universal stands a good chance of resuscitating its earnings in 1959 . . ." LOEWS, INC. ". . . Under the astute guidance of President Joseph Vogel, Loew's is staging a spectacular recovery . . . Management accomplished this remarkable turnabout through dual action: (1) ... It has trimmed the company's enormous overhead considerably. (2) ... It has significantly improved the quality of M-G-M film products . . ." PARAMOUNT ". . . Net operating earnings in 1958 probably fell short of the $2.80 a share mark attained the year before. Not many of the company's film releases were particularly successful last year . . . Paramount did realize considerable capital gains ($4.64 a share) in 1958 . . . With the proceeds generated from the transactions, Paramount has been reacquiring its own shares . . ." TWENTIETH CENTURY-FOX ". . . After having earned at an average quarterly rate of $1.15 a share during the first half of 1958, Twentieth Century-Fox reported net profits of only 59c a share for the third quarter. During the final months of last year, a number of the company's major releases proved to be disappointing . . . Common stock has recent!) been exceptionally strong and active. This can probably be attributed to widespread reports that the company is about to sell its real estate properties in Los Angeles . . ." WARNER BROS. Warner Bros.' annual report for the fiscal yeai ended Aug. 31 reveals an interesting paradox. On the one hand, it shows thai the company had a loss of 59c a share . . . On the other hand, (he annual report shows that the company earned 95c a share in the final fiscal quarter, the most ever for that period . . . Unless the company has an unusually large number of film disappointments, we believe Warner Bros, will be able to show satisfactory profits from hereon . . ." Film BULLETIN January 19. 195? Paqo »