Television digest with electronic reports (Jan-Dec 1957)

14 WIRED ‘HOME MOVIE’ concept received its first resounding whack from a major theatre spokesman this week when Ernest G. Stellings, pres, of Theatre Owners of America, issued statement warning exhibitors that such systems may be “a one-way ticket to business suicide.” His emphatic words came as surprising note in rising tide of enthusiasm among theatremen waiting for start of first experiment in Bartlesville, Okla. (Vol. 13:9-10). Most of Stellings’ statement was in form of questions: Will viewers pay the sums proponents think they will? What’s to stop viewers from calling in their neighbors? Can cities grant exclusive franchises ? What will prevent non-exhibitors from muscling in ? “Can you imagine what vicious competition there would be among the competing cable theatre systems ? What is there to prevent pirating of pictures via concealed cable to the house next door?” Where will exhibitors get enough “tight” money to finance systems ? Stellings also chided exhibitors for blasting telecast toll-TV on one hand while welcoming wired systems on other. This, he said, is “tantamount to saying ‘it is all right if we control it, but it is all wrong if anybody else uses it.’” He wound up by urging exhibitors to watch Bartlesville operation “very carefully.” ^ Countering Stellings’ arguments, Milton J. Shapp, pres, of Jerrold Electronics Corp., which is supplying Bartlesville equipment, told April 12 N. Y. news conference he agrees that first tests should be evaluated carefully before any broad installation of systems is considered. However, he said, system proponents are quite satisfied that operation will be technically sound and that “the economics make sense.” Shapp insisted cable system is basically different from telecast toll TV in that former “lends itself to local ownership by exhibitors” whereas latter “would be handled on franchise basis controlled by one group.” He reported that initial equipment is on its way to Bartlesville; that Video Independent Theatres will begin installation within 2 weeks; that surveys of town indicate some 60% of families are seriously interested in taking service. RCA-NBC answer to anti-trust suit filed by Justice Dept, against it in connection with swap of its old WNBK & WTAM in Cleveland (now KYW-TV & KYW) for Westinghouse’s WPTZ & KYW in Philadelphia (now WRCV-TV & WRCV) makes point that Justice lacked authority in case and consequently the court lacks jurisdiction to rule on it. In answer filed in Philadelphia Federal Court April 10, RCA-NBC stated: “At no time did the anti-trust division intervene in the proceedings before the [FCC]. Nor did the anti-trust division protest the action of the Commission or request a rehearing. The anti-trust division failed to avail itself of the procedures made mandatory by the Congress to obtain modification of the Commission’s action. That action has become final and is not subject to attack.” It said NBC and Westinghouse entered into exchange agreement in good faith and neither the agreement nor its consummation violated Sherman anti-trust act, as charged. Postwar economic sourcebook Your Target (64 pp.), covering market, marketing & media changes, including charts on rise of TV and spread of radio set use, is published by BBDO, copies available from agency, 383 Madison Ave., N. Y. Subscription-TV tests got another editorial endorsement, April 8 Scripps-Howard’s Washivgton Daily News stating: “If ‘pay-as-you-see’ TV is a sound proposition, the public will do the deciding.” Similar view was expressed recently by N. Y. Herald Tribune (Vol. 13:12). Watchdog subcommittee of House Commeice Committee (Vol. 13:10) was given $250,000 April 11 for 18month probe of 17 regulatory agencies, including FCC. Aim is to see whether they are carrying out intent of Congi’ess in setting them up or are subservient to industries they supervise. Rumors that FCC would be particular target were denied by committee sources who insisted no agency had been singled out for attack. Subcommittee headed by Rep. Moulder (D-Mo.) will have 7 staff experts & 5 assistants (none selected), probably directed by Dr. Andrew Stevenson of full committee’s professional staff. Extra money, added to $100,000 already set for general investigative program of full Committee, was voted 225-143 by House despite warning by Minority Leader Martin (R-Mass.) that it was “devastating blow to the economy drive” in Congress. Chief advocate of $250,000 appropriation was Speaker Rayburn (D-Tex.). “Distinguished Advertising” citations in 5th annual Saturday Review awards were given this week to following programs (sponsors in parentheses) : Omnibus, ABCTV (Aluminum Ltd., Union Carbide & Carbon) ; Metropolitan Opera ABC Radio (Texas Co.) ; Disneyland, ABCTV (Aluminium Ltd., Union Carbide & Carbon) ; MetroFoods) ; See It Now, CBS-TV (Shulton, Pan-American World Airways) ; Kraft Theatre, NBC-TV (Kraft Foods) ; Playhouse 90, CBS-TV (Bristol-Myers, Ronson, Singer Sewing Machine) ; Hallmark Hall of Fame, NBC-TV (Hallmark Greeting Cards) ; NBC Opera, NBC-TV (NBC); “At Year’s End,” CBS-TV (CBS). Special citation went to Jack Gould of N. Y. Times “for critical journalism of the highest order.” BBC’s Third Program of “egghead” radio was cut April 8 from 5 to 3 hours daily because of rising costs — now $3,000,000 a year — and drop in listeners to estimated 40,000 against 12,000,000 for top TV shows. Sir Ian Jacob, BBC director general, said 2 hours saved will be given to new radio “Network Three” for special-interest programs not available regularly on radio or TV. Curtailment was ordered despite protests by Third Program Defense Society, organized by schoolmaster Peter Needs who thinks TV is “idiot’s lantern,” and a motion of resentment in Parliament signed by 130 members. UHF Success Story: How WW’LP, Springfield, Mass. (Ch. 22), on air since March 1953 and managed by dynamic young gen. mgr. Wm. L. Putnam, earned 1956 profit of $133,444 on income of $849,246 (including $344,547 from national, $291,434 local, $134,451 from NBC, $26,181 from ABC), is detailed in April 8 Broadcasting -Telecasting. There was profit in 1955, too — but only $16,306 on income of $513,124, and in 1954 loss was $101,882 on $389,793. Originally capitalized at $400,000, capital deficit was reduced to $167,931 by end of 1956. Theatrical Interests Plan Inc., which started out as N. Y. investment management group to “angel” stage enterprises (Vol. 12:44), asked SEC April 11 to cancel its registration. Application said TIP hasn’t engaged in any business activities to date, that 23 stockholders voted to change nature of firm into production & management of plays, movies, TV & radio programs, etc. Principal organizers of TIP were Theodoie J. Ritter, TV film producer; John Gerstad, TV script editor; Dennis K. McDonald of Billboard. SEC statement lists total TIP capital of $113,147 including paid-in surplus of $111,440. Canadian TV applications to be considered by CBC Board of Governors at April 30 meeting in Ottawa : radio CJDC (W. P. Michaud, pres.), Dawson Ci'eek, B.C. for Ch. 5 there; CFCL-TV, Timmins, Ont. (Ch. 6) for satellites in Kapuskasing, Ont. (Ch. 3) and Kirkland Lake, Ont. (Ch. 9) ; CKSO-TV, Sudbury, Ont. (Ch. 5) for satellite in Elliot Lake, Ont. (Ch. 3) ; CHCH-TV, Hamilton, Ont. (Ch. 11) for power increase from 100-kw to 150-kw.