Television digest with electronic reports (Jan-Dec 1957)

2 FCC didn’t discuss sub.lect this week, though Chairman McConnaughey was on hand after deferring planned vacation. Debate is expected to resume next week. Last pre-NARTB convention go-around gave impression majority was clearly leaning toward authorization of "tests" — or at least toward a short fact-gathering proceeding leading to test authorizations on some still-undefined basis. * * * * Theatre exhibitors are fretting & stewing more than ever, meanwhile, over whether to go for wired "home movie" systems, a la guinea-pig Bartlesville, Okla. experiment (Vol. 13:10). On one hand, they see highly successful chain operator Video Independent Theatres (150 theatres) calmly pushing the Bartlesville test; on other, they have dire warnings of potential disaster from their principal national spokesman, Ernest G. Stellings, pres, of Theatre Owners of America (Vol. 13:15). Exhibitors continue to buy "insurance." at any rate, in form of city franchises which would permit them to string cable — if & when. Most extravagant prediction to date came this week in St. Louis, where Pete Gloried, mgr. of theatres in Poplar Bluff, Mo., told meeting of Missouri-Illinois Theatre Owners that franchises may be sought in as many as 6000 communities; and that among the seekers will be well-heeled businessmen outside the exhibitor ranks. HANSEN PINPOINTS NETWORK ANTI-TRUST PRORES: Even as 5 more TV feature film distributors were being slapped with "block-booking" civil anti-trust suits. Gov't. 's chief trust-buster. Asst. Attorney General Hansen, told broadcasters Justice Dept, is stepping up its investigation of network practices — particularly as regards "must-buy" station lists and network control and sale of programs. Complaints against the feature film distributors were virtually identical to the one filed last month against Loew's Inc. (Vol. 13:13) and which is understood to be currently under negotiation for possible consent decree. All filed in N.Y. Federal Court, suits accuse distributors of requiring stations to buy features on a package basis, and seek to force distributors to sell on picture-by-picture basis, reopening negotiations on all features already sold. Defendants in this week's suits: C&C Super Corp. (distributor of RKO pic tures), Screen Gems Inc. (Columbia Pictures subsidiary). Associated Artists Productions (distributors of Warner Bros, backlog). National Telefilm Assoc, (distributors of 20th Century-Fox features) and United Artists (its own features). Block-booking charges were denied by officials of the companies in statements to press, some of the companies stating that they sold films on individual basis. * * * * "We are devoting a good deal of attention, manpower and a substantial part of our budgeted funds to a broad scale inquiry into the broadcasting industry — especially to TV, its newest and most powerful branch." So said Judge Hansen in April 18 speech to Federal Comunications Bar Assn. Noting that probe began "on small scale" in 1953, he said "about a year ago the scope and urgency of the problems convinced us to expand and accelerate our study." Indicating principal areas of investigation, he specifically mentioned "our investigation of alleged tie-ins between the sale of network time and programs" and "a broad inquiry into the networks' business practice known as the 'must buy' policy." He made no specific mention this time of other phases of inquiry he outlined at Celler hearings last September (Vol. 12:37) — option time, pricing of shows, discounts, production facilities, scenery & set production, talent contracts. If any action is taken against neworks. it probably won't come in immediate future — since Judge Hansen indicated that report of FCC network study group, due in July, will be "of great value" to Justice Dept. As to question of FCC vs. Justice Dept, jurisdiction, he said both agencies are determined not to "play Alphonse and Gaston in a matter of such great importance" and will let "no important aspect of broadcasting [fall] into the interstices between us." * ♦ * * That Hansen doesn't hesitate to move in any direction was made even clearer this week when FCC made public his comments on Commission's re-examination of use of