Television digest with AM-FM reports (Jan 1951-Jan 1952)

2 TV's phenomenal growth to $105,800,000 in 1950 from $34,300,000 in 1949 (Vol. 7:13). ■ Few would acknowledge good economic reasons for CBS move at this time, though everybody accepts CBS story that Lever, Procter & Gamble, other major sponsors had given rate-cut ultimatiuns. CBS station relations v.p. Herb Akerberg spent some uncomfortable hours with affiliates at Chicago. NARTB chairman Justin Miller took cognizance of sponsor rate demands in his speech: "Far more dangerous to radio than competition from TV," said he, "is ratecutting boycott recently engineered by a combination of national advertisers. Although radio will be the immediate sufferer, it may be only a question of time until similar, monopolistic, conspiratorial coercion will be used to break down TV rates also." He thought anti-trust actions were possible. >Vhat rubbed CBS affiliates mostly was fact all they got was bare telegram telling them of July 1 cuts — no prior warning or discussion. They griped most bitterly that President Stanton had assured them at recent regional CBS meetings that there would be no cuts ; that CBS had been in fore with surveys showing "radio as best buy" ; that when NBC sought to cut rates in TV markets only last December (Vol. 6:51, 7:1), they had urged their local NBC brethren to buck such move — at behest of CBS executives, they said; and that some had stayed out of TV when channels were plentiful — on advice of CBS. * * * * During all-affiliates meeting, one heard such expressions as "survival of radio," "beginning of the end," "dog eat dog," and Chairman Morency asked if high price of talent (referring to CBS raids) wasn't real cause. At BAB meeting, chairman Edgar Kobak, ex-MBS president, remarked: "Broadcasters are to blame for fact they failed to raise rates in recent years. Rate structure, not rates, is out of date. Buyers think rates should be lower, and sellers have been making deals which indicate they think rates are too high, that they are losing confidence in their product." Kobak urged complete separation of TV and radio, if under same ownership. "These powerful media are in competition," he said. He quoted letter from ex-CBS executive v.p. Paul Kesten, member of BAB board: "Let TV fend for itself. While BAB's slugging need not be aimed primarily at TV, it must be considered a fair target. All doublej ointed radio-and-TV interests supporting BAB ought to agree to this in advance." Kesten suggested survey "to pit radio and TV against each other in parallel markets and measure the payoff." ♦ ♦ ♦ ♦ From Judge Miller's speech, some could take heart when he denied TV can "completely destroy and supplant aural radio." He said: "The walls have not yet crumbled on radio because of the impact of TV — and never will." On other hand, there was news — discounted by some because of its TV interest — that Detroit News' pioneer WWJ had cut Class A night hourly rate from $800 to $640 an hour, retroactive to April 1. Manager Harry Bannister explained WWJ had raised its rates in recent years, now faced TV cut into audience, felt it must "play square" with advertisers. He said radio would have to find its own level, but for next few years faces rugged going. Bannister's attitude exemplifies position of big broadcaster who also is big telecaster, recalls 1949 warning by Crosley's James Shouse (Vol. 5:42) and action of WFIL's Roger Clipp in readjusting that Philadelphia station's rates just prior to last year's NAB convention (Vol. 6:16). TAKE WRAPS OFF TV — NARTB KEYNOTE: Exasperation over long freeze and educational channel reservations (see TV Allocation Report) was obvious among NARTB conventioneers. But also v/orth noting was this growing attitude: "What the hell — let's quit fussing around, let's get going, let's build some stations." Greater optimism about uhf, stemming from excellent technical progress (see page 4 and Vol. 7:15), also contributed to "let's get going" feeling. Additional pressure was supplied by WHEC's able chief engineer Bernard C. O'Brien, who almost sold FCC on 150-mile vhf cc-channel separation and who contrib