Independent Exhibitors Film Bulletin (1963)

O'NEIL Pay TV Pot Boils From Coast to Coast The Pay-TV pot has been boiling on east and west coasts in the past week. Subscription Television, Inc., the new west coast venture that aims to wire Los Angeles and San Francisco within the next year, announced that it had named Slyvester L. (Pat) Weaver, Jr. as its president. Weaver, a former stalwart of commercial television, is leaving the McCann-Erickson advertising agency to assume the post. STV also revealed that Tom Galery, NBC sports director, will become vice president of programs of the new Pay-TV outfit. Weaver reportedly will receive $85,000 a year as a base salary, in addition to a percentage of the net profits, while Gallery will be paid $62,500. Both executives are receiving options to buy STV stock. Subscription Television is awaiting SEC approval to offer 1.9 million shares of its $1 par value common stock to the public at $12 per share. STV bases its hope principally on deals with the L. A. Dodgers and San Francisco Giants. Also, in California tire mogul Thomas F. O'Neil, whose RKO General is collaborating with Zenith Radio Corp. in the Hartford over-the-air Pay-TV tests, told the press that he feels the pay system is a long way removed from profitable operation, although it has "a great chance" for ultimate success. "Everybody", he said, "has oversold Pay-TV." Admitting that the three year Hartford experiment will cost an estimated $4 million, O'Neil said, "Only 25% of the homes use the service enough to help defray our costs," but on a projection of potential revenue, he expressed the view that feevee eventually will draw revenue three time as great as commercial television on a perhome basis. This, he claimed, would mean $75 per year per home against the $25 per home free TV is supposed to draw in advertising dollars. The Hartford test, O'Neil said, has not revealed enough to label it either a success or a failure, but, he added, "we didn't expect much." CAST & CREDITS ■ Report on the Industry's PEOPLE and EVENTS In New York last week Philip F. Harling, chairman of the Joint Committee Against Toll TV, urged theatremen to be on the alert to combat moves for wired feevee franchises. Since licences for over-the-air transmission of Pay-TV cannot readily be obtained from the Federal Communications Commission, Harling said that feevee promoters will seek to obtain favorable action on petitions to wire local communities. He advised exhibitors to "unite your community against any attempt to usurp municipal and state property", and to "organize local opposition to Pay-TV." California exhibitors rose to meet the threat in their area with a "Crusade for Free TV." A. C. Childhouse, treasurer of United California Theatres, was named chairman, and the combined northern and southern California theatremen planned to raise a large fund to fight the Pay-TV threat in the state. Every legal effort, on constitutional grounds, will be made to halt the use of public utility lines for subscription television transmissions. If this fails, the next move will be to have the issue put on the ballot for a voters' referendum in November. HARLING Exhibitors Get Voice In 'Lawrence7 Push Columbia, not a distributor to let something good lag for want of promotional push, is readying an all-out, locallevel campaign to keep its roadshow blockbuster, "Lawrence of Arabia" rolling through general release engage FERGUSON ments. And exhibitors are being asked to give their own ideas on how the Sam Spiegel-David Lean spectacle should be sold. Robert S. Ferguson, vice president in charge of promotion, told a meeting of leading eastern Pennsylvania exhibitors in Philadelphia last week that his company "is prepared to invest whatever time, talent and money is necessary to give individualized promotional support to 'Lawrence'." The Sam SpiegelDavid Lean production will go into general release on Oct. 9. Ferguson, assisted by Bill Blowitz, representing Spiegel; John Skouras, "Lawrence" coordinator, and Milt Young, eastern Penna. field representative, laid out a broad campaign for the spectacle's "break", and asked the exhibitors to offer their own recommendations to implement it. Several suggestions presented by the theatremen were added to the promotion program, and Ferguson won praise for giving exhibitors a voice in the campaign. Speaking of People... William J. Heinemann was unanimously elected president of Motion Picture Pioneers and of the Foundation of Motion Picture Pioneers, succeeding the late Herman Robbins . . . Burton E. Robbins, president of National Screen Service, named chief executive officer of the company. Norman Robbins, general manager of operations, was elected a v.p. and named to the NSS board . . . Harry Brandt reelected president of the I.T.O. of New York . . . William Goldman announced plans to construct another new 2000-seat key-run house in greater northeast section of Philadelphia . . . Ben Berger, fiery North Central Allied leader, blasted film companies in organization bulletin for inordinate film rentals "that are tightening the noose around our necks" . . . Robert W. Selig, National General v.p. in charge of theatre operations, speaking at opening of new NG house in Northridge, Cal., said population explosion in certain areas has created "a tremendous need and opportunity for new theatres." Page 8 Film BULLETIN September 14, 1963