Paramount World (May 1958 - July 1962)

Paramount World 27 TELEMETER BROUGHT MUCH GOOD NEWS TO PARAMOUNT STOCKHOLDERS AT CORPORATION'S ANNUAL MEETING ON JUNE 5TH *********** Reproduce^ below is that portion of President Barney Balaban's letter to the company's stockholders relating to Telemeter. This was incorporated in the annual Stockholders' Report, and wa3 enlarged upon by Mr. Balaban at the meeting in New York on June 5th. Some of the supDlementary remarks will be found elsewhere on this page. International Telemeter Company With regard to our International Telemeter Company Division and its pay television systems, I plan to report in more detail on recent developments at our Annual Meeting. A good deal of new information, resulting from the expanded programming in Toronto during the fall and winter months is now being compiled and analyzed. In addition, a leading firm of consultants has been engaged for the past couple of months in detailed cost analyses of the Telemeter system. Both efforts should contribute greatly to a better understanding of the economics of pay TV. At this time, there are a number of indications that encouraging progress has been made in various areas of this pioneering venture. All signs point to the emergence of pay television during the coming year as a subject of intense interest in the entertainment field. A recent court decision has affirmed the validity of the F.C.C.’s authorization of pay TV tests overthe-air. Also, our associates have recently won a victory in the Arkansas courts which, compelling the telephone company to provide wire service, advanced the advent of cldsed circuit pay TV. It seems that the day is approaching when the new medium' can operate in the American market. Telemeter has developed both over-theair and closed circuit system^ of pay television and is preparing for either eventuality or an integration of both. Because of the desirability of an adequate proving ground for technical and program evaluation, as well as general public acceptance of the medium, Paramount entered into new financial arrangements -with Famous Players Canadian Corporation last fall covering the Toronto operation. These arrangements provide for certain contributions by us during the testing period and are terminable by Paramount. Obviously, the experience and results being obtained in Toronto are important in the development of Telemeter. During the past year, additional subscriptions to the original stock of British Telemeter Home Viewing, Limited, Telemeter’s franchise holder in the United Kingdom, were received. Paramount has subscribed to a minority interest of about 15 percent in the British company. The other participants consist of leading entertainment, communications and financial interests in Great Britain. They include : British Lion Films Limited, The Financial Times, Granada Group Limited, The Manchester Guardian and Evening News Limited, N. M. Rothschild & Sons, Schlesinger Investments Limited (representing the Schlesinger interests of South Africa) and Welsh Telepay Limited (representing the Llewellyn interests in Wales) . Our British associates are now awaiting the report and recommendations of the Parliamentary Committee inquiring into all phases of television. Should the Government authorize pay TV, the prospects for its success in the United Kingdom appear to be particularly promising. WEDNESDAY, THURSDAY, FRIDAY & SATURDAY AT 6:35,9:30 l THE MOTION PICTURE l \ FOR EVERYONE! I OoOoOeo.o . © • O • O s Cedi RDeMille'S nw Sic wmt JAMES CHARLTON STEWART HESTON ' ft* rt rt ft ft ft ft ft ft ft ft ft ^ President Barney Balaban promised to report "in more detail'* at the Annual Meeting and he certainly did. As The Film Daily reported, Mr* Balaban stated that ”The results of a study made by 'a leading consulting firm* of the Telemeter operation in Toronto were hailed as a major break-through for the toll TV system. ” The president also reported that in the Toronto suburb of Mimic o, into which Telemeter had expanded from neighboring Etobicoke since the beginning of the year, the first results are still coming in, and they are encouraging. ’’Based on what we know now, I believe that a new industry has been born at Etobicoke, Canada,” Mr. Balaban stated. ’’There is no longer any doubt that people will pay for a pay television service and for programs of their choice.” Louis A. Novins, president of International Telemeter Company, told the stockholders that ”we now know that it is comparatively easy to sell Telemeter to the public,” He also stated that ”We definitely intend to cone into the United States at the first opportunity. ” A great deal of stockholder interest x*as manifested in the subject of Telemeter, and both Mr. Balaban and Mr. Novins had a number of pertinent and very thoughtful questions to answer. TT TTTT T T T T T ^ ip ^ T* T* T* T* T p p p T* H-1 p "BLUE HAWAII" was the big Telemeter attraction over Etobicoke's Channel 5A on June 7, 8, 9.