Motion Picture Herald (1954)

TRADE MAPS STRATEGY FOR FIGHT ON TOLL TV Plans a Four -Point Attack Designed to Halt Zenith Efforts to Rush FCC Subscription television was the subject of conversations in at least two meeting rooms in New York last week. The meetings, both on Thursday, were something less than one city block apart, geographically. However, one or two worlds separated the general sentiments expressed. The first meeting, in the Theatre Owners of America headquarters, was a press conference called by the exhibitors’ joint emergency committee on toll TV. Presiding was Trueman Rembusch, co-chairman with Alfred Starr of the joint committee, with Herman Levy, TOA general counsel, sitting in for the absent Mr. Starr, and Wilbur Snaper, William Namenson and Phillip Harling also attending. Zenith Holds Seminar On Phonevision Case The other affair was a Zenith Radio Corporation seminar on Phonevision held at Sardi’s Restaurant at the invitation of the National Theatre Arts Council. Presenting the Phonevision case were Pieter Van Beek, executive assistant to the president of Zenith ; Ted Leitzell, public relations director of the company, and Dr. Millard Faught, economic consultant to Zenith. The press conference in the TOA headquarters climaxed two days of meetings of the joint emergency committee, during which, according to Mr. Rembusch, exhibition’s anti-toll TV campaign was mapped. This canipaign is to proceed along four lines : A petition to the Federal Communications Commission asking that Zenith’s petition for the immediate approval of Phonevision be denied and asking that in the scheduling of hearings on Phonevision exhibition be given enough time to prepare its arguments in the case; An “educational” program to the public, designed to correct “misleading” claims made by toll TV promoters; The raising of funds to finance the joint committee’s work, perhaps on a system of exhibitor contributions or assessments raised through regional exhibitor organizations; and The enlisting of the aid of allied industry groups, such as advertising agencies, and other groups at the local level, such as merchants and retailers. Although subscription television recently has received the endorsement of some prominent theatrical groups, notably from Ralph Bellamy, president of Actors Equity, the seminar at Sardi’s (over luncheon) revealed that many stage producers and owners of legitimate houses are quite skeptical about Phonevision’s ability to help the theatre instead of stealing its manpower, audiences and monetary returns. (Mr. Bellamy’s endorsement, incidentally, appeared in several trade publications last week as two-page ads, paid for by Zenith.) Shubert Questions Value To Any Theatre Owner At the Sardi seminar, John Shubert, well known legitimate theatre owner, questioned the “one night stand” performance on subscription television and its value to a house owner. In answer he was told that once the system gets under way, there will be enough product, both films and live “legitimate,” so that owners would not have to worry. Otlt,ers expressed concern on the censorship problem, with which Broadway producers would have to contend once their offerings begin going over the air waves. Zenith representatives revealed that “the cost of a Phonevision code descrambler should equal the cost of a small radio now being sold. Zenith, once permission is granted by the FCC, hopes to mass-produce these decoders so that some 500,000 U. S. homes are equipped within a year.” Mr. Rembusch opened the press conference at the TOA headquarters with a discussion of what he described as some of “the erroneous claims” made in the current Zenith petition to the FCC. In the first place, he said, Zenith is basing its request on the success of the Phonevision test in Chicago. It is neither here nor there that the “success” of that test is open to question, said Mr. Rembusch. The important thing is that Zenith now has discarded the Phonevision system (a telephone line system) it used in the test and has proposed instead three new “untried and unproven” systems. No Objection if on Same Basis as Theatre TV The joint committee, continued Mr. Rembusch, has no objection to toll TV if it competes on the same basis with theatre TV, that is, if it uses the same coaxial cable facilities as theatre TV uses. The committee objects most strongly, he said, to Zenith’s request to use the “free air waves,” and thus to obtain “a preferred economic position” using the free air waves while at the same time putting theatres in an economically unsound position. Mr. Namenson, representing the Independent Theatre Owners Association, said that “toll TV is against the interests of the public because it will foist on the public a charge for entertainment over the air waves which they were assured they would enjoy upon the purchase of a television set. Also, once one TV broadcasting company gets the right to charge for a program it then becomes a matter of time before all programs will be subject to charge.” Mr. Snaper said that exhibition’s opposition to toll TV would be just as adamant even if the question of theatrical films for toll TV were not a consideration. It’s the principle of the thing, he indicated, and Mr. Rembusch added that the joint committee would base its attack solely on damage to the public which loss of free TV would mean. “The FCC,” he said, “is not interested in how many theatres stay open or close.” Mr. Levy said the exhibitors’ joint committee would meet again early in the new year to draw up plans to implement the projected four-point campaign. Currently, the Washington law firm of Marks and Cohn has been retained to prepare exhibition’s petition in answer to the Zenith petition, Mr. Levy said, indicating it would be filed shortly. Zenith Phonevision Rights Licensed for Australia Subscription television, utilizing the Phonevision systems of Zenith Radio Corporation, will be introduced to Australia and New Zealand under terms of a contract which has been signed between Zenith and the Rola Company, Melbourne, Australia. Commander Eugene F. McDonald, Jr., president of Zenith, and A. Leonard C. Webb, managing director of Rola, jointly announced that they will seek to introduce Phonevision there immediately. The new company to be formed will try for government and industry support of the Phonevision system. Balaban Says "Xmas" Was Top Grosser for 1954 In a letter mailed this week to the stockholders of Paramount Pictures, Barney Balaban, company president, said that “White Christmas” now “appears certain to be 1954’s highest grossing picture of the industry. We are confident that more people will pay to see it than have seen any other motion picture for several years.” The letter also listed 20 productions with details on each of them. Mr. Balaban also expressed optimism for the new year based on completed product scheduled for release in 1955, “most of which we have seen.” He added, “We are now producing all our pictures in high-fidelity’ VistaVision.” The letter also reports the likelihood of “an acceleration in public interest and discussion about pay-as-you-see television in 1955” and that Paramount feels that the practical advantages of its International Telemeter system “makes it outstanding in the field.” MOTION PICTURE HERALD, DECEMBER 18, 1954 13