Television digest with electronic reports (Jan-Dec 1954)

14 Meteoric rise of tv as an advertising medium, as revealed in latest McCann-Erickson reports for Printers’ Ink (Vol. 10:33), has NBC’s exec. v.p. Robert W. Sarnoff adding his “guesstimates” of what’s ahead in the next few years. Whereas we figured “over $800,000,000” this year, and CBS pres. Frank Stanton has estimated “in the order of $1.25 billion by 1957 or 1958,” NBC Research got up these figures: In 1952, advertisers spent $7.15 billion on all media, TV getting $509,000,000, or 7%. In 1953, advertisers spent $7,809,200,000, TV getting $610,500,000, or 7.5%. In 1954, of an estimated $8.5 billion to be spent by advertisers, TV should get $930,000,000 or 11%. In 1955, out of $9.2 billion, TV should get $1.3 billion, or 14%. In 1956, out of $9.7 billion, TV’s share will be $1.9 billion, or nearly 20%. (TV figures include not only time but talent, production and all other charges paid by the advertiser.) On the basis of these figures, Sarnoff wrote for special edition of Variety last month: “Television, still at the breakaway point of the great color derby, already promises to outstrip radio at the crest of its power.” He then projected the estimates to 1956, which he said will be the “first full year of unfettered growth for color TV.” ■ Bryson bill (HR-1227), which would ban advertising of alcoholic beverages — including wine and beer — in interstate media (Vol. 10:21) failed to emerge fx’om House Interstate Commerce Committee, as predicted. But committee Chairman Wolverton (R-N. J.), in possible deference to large number of petitions from prohibitionists and others, issued report to House stating there was too much advertising of beer and wine on TV-radio and that industry’s “efforts at self -regulation have not been as successful as the committee might justifiably have expected.” Noting that hard liquor is not advertised on TV-radio, committee asked whether bi’oadcasters “should not also adopt specific policies with regard to the advertising of beer and wine products with a view to eliminating or curtailing such advertising.” In follow-up letters to NARTB, FCC and alcoholic beverage trade assns., committee asked for report by Jan. 1 on dollar volume of alcoholic beverage advertising; number, character and length of programs sponsored by wine and beer manufacturers; on-air time consumed by such ads. NARTB said it would comply with committee’s request, meanwhile had no comment. James G. Rogers, ex-Benton & Bowles, who helped found WWOR-TV, Worcester, has been elected pres, of new KFSD Inc., which is paying approximately $3,200,000 to purchase KFSD-TV, San Diego (Ch. 10), along with radio KFSD, from Tom Sharp and other owners (Vol. 10:31-32). Rogers is associated with Fox, Wells & Co., principals in deal, who also own about 28% of Olympic Radio. Fox, Wells principals are George A. Wells, ex-pres., American Optical Co.; Heywood Fox, also exAmerican Optical; R. Bowling Barnes, Stamford, Conn., recently American Optical research v.p. Also on board of new KFSD Inc. are Glen McDaniel, pres of RETMA, onetime RCA v.p., partner in N. Y. law firm of Lundgren, Lincoln, Peterson & McDaniel; and Wm. T. Lane, Syiacuse consultant, ex-gen. mgr. of WAGE, Syracuse, and WLTV, Atlanta (now WLWA). No major staff changes are planned, and stations will continue as NBC affiliates. FCC approved sale of WJBF, Augusta, Ga. (250 watts on 1230 kc, NBC) for $125,000 this week, per J. B. Fuqua’s plan to devote fulltime to his WJBF-TV (Vol. 10:31). Buyer is Media Inc., Tarboro, N. C., headed by V. E. Fountain Sr., operating other radio stations. ■ Mrs. C. E. Amey Jr., 53, wife of NARTB’s secy.treas., died Aug. 13 at Georgetovm Hospital, Washington, after long illness. Nothing new yet on FCC chairmanship, except that Idaho backers of acting chairman Rosel Hyde were again urging his reappointment as an assist to GOP Sen. Dworshak in lining up the Mormon vote in his campaign against ex-Sen. Taylor, Democratic nominee. Comr. Hyde is a Mormon from Idaho, where he’s currently vacationing. It’s clear now that the Republican national committee hierarchy, if not the White House, is hell-bent to get George C. McConnaughey, now chairman of the Renegotiation Board, on the Commission— but not necessarily as chairman. Neither Comr. Hyde nor Comr. Sterling has indicated any intention of resigning, though latter’s health may force him to quit before his term expires in 1957, which would open Republican vacancy necessary if McConnaughey is to get post. He’s 58, 1918 graduate of Denison U, World War I veteran, 1923 law graduate of Western Reserve U, former Cleveland lawyer, onetime chairman of Ohio Public Utilities Commission, past pres, of National Assn, of Railroad & Utilities Commissioners. With Hyde in Idaho, Sterling in Maine, other commissioners also vacationing. Commission is in virtual recess until Sept. 1. FCC has authorized Jack & Louis Bei-kman, who own 11.45% interest each in now silent WFPG-TV, Atlantic City (Ch. 46), to sell that interest, along with their equivalent interest in WFPG, to Richard & Helen Teitlebaum for $5000. Announced this week was sale of 20% interest in KTXL-TV, San Angelo, Tex. (Ch. 8), with KTXL, for $26,500 to Lowell Smith, banker, and Marshall Formby, holding interests in 4 small Texas radio stations. In another deal reported this week, radio W’FOX, Milwaukee, was sold to Business Management Inc., headed by Joseph A. Clark, so that former WFOX principals in Wisconsin Broadcasting System Inc. can exercise their option on 30% of stock in recently granted WTVW, Milwaukee (Ch. 12). Charles Skouras’ National Theatres Inc., Hollywood, this week cancelled orders with General Precision Equipment for 16 large theatre-TV screens, valued at $200,000, on which it had planned to carry Marciano-Charles fight Sept. 15 from N. Y. via Theatre Network TV in as many of its theatres. TNT’s requirement of 50% of boxoffice gross was said to be too high. This week, TNT reported it has 23 theatres signed thus far for its closed-circuit telecast. For Marciano-Charles fight last June 17, it had 61 theatres in 45 cities coast to coast, with only metropolitan N. Y. and New England blacked out. Honolulu newspapers reported actor John Wayne and a business associate. Bob Roos, negotiating for interest in KULA-TV (Ch. 4) and 10-kw AM affiliate — but pres. Herbert L. Pettey says he knows nothing about it. Gen. mgr. Jack Burnett owns 10%, with American Broadcasting Stations Inc. (Wm. B. Dolph) holding 41% and KJBS, San Francisco 33%. Novel service inaugurated by INS this week — transmission to TV stations of facsimile photos along with tape recording made by news figures whose picture is being sent. Vice President Nixon was first subject of new service which makes possible transmission of both sight & sound to stations in matter of minutes. KCCC-TV, Sacramento, Cal. (Ch. 40) now is owned equally by gen. mgr. Ashley L. Robison and pres. Harry McCart following recent FCC approval of deal by which they bought out stock interest of Frank E. Hurd for $45,000 and assumed nearly $40,000 in notes (Vol. 10:27). Stations interconnected by AT&T facilities this week: WABI-TV, Bangor, Me.; WGR-TV, Buffalo, N. Y.; WCHSTV, Charleston, W. Va.; KTAG-TV, Lake Charles, La. Due Aug. 28 is new CKLW-TV, Windsor, Ont. Some 25 more are scheduled in Sept.