Television digest with electronic reports (Jan-Dec 1959)

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NAB LIBRA IV' -'■■“"Television Digest MARCH 7, 1959 © 1959 TRIANGLE PUBLICATIONS. INC. VOL. 15: No. 10 The authoritative newsletter for executives of TV and associated radio and electronics arts & industries SUMMARYINDEX Networks FCC WEIGHS JUSTICE'S ANTI-OPTION TIME VIEWS. Is expected to reiterate its opinion that practice must be retained to sustain network program quality (pp. 1 & 5). MUTUAL NETWORK SOLD AGAIN, to N.Y. group headed by importer-record mfr. Malcolm Smith and including ex-MBS v.p. Adolf Hult. New owners take over, announce continuance of present format (PP 2 & 7). FCC FULBRIGHT: "LET FCC HANDLE BOOSTER PROBLEM." First anti-booster voice is raised in Congress, as FCC mulls to-be-ornot-to-be (p. 2). HELP ON EQUAL TIME DILEMMA is held out to broadcasters in Congress, following FCC's ruling that newscasts constitute political pitches (p. 6). Film & Tape RCA ENTERS TV TAPE RECORDER BATTLE. Will show first production model at NAB show, opening its sales drive. Ampex to have large exhibit space, 3 units in operation (pp. 4 & 12). Manuiactuxing & Distribution DECADE OF GROWTH FOR TV predicted by Sylvania's research director Mansfield. He forecasts 78,250,000 set sales; 80,890,000 sets-in-use by 1968 (p. 14). OF WEEK'S NEWS Stations NSRC GETS 17 STEREO-SYSTEM PROPOSALS as panel holds first meeting. RCA finalizes on new AM system after "sneak preview" test. Westinghouse shows similar method (pp. 4 & 9). NEW & UPCOMING STATIONS include start of the 39th educational— ^KUAT, Tucson. St. Louis' KPLR-TV is due for early April debut as on independent (p. 8). COURT BLOCKS SALE OF WJAR-TV. PROVIDENCE, to Zeckendorf & Mullins. Preliminary injunction holds that trustees had "conflict of interest," failed to seek better offer (p. 9). Congress OCDM SPECTRUM PLAN HEADS TOWARD SHELF in Congress. Bills setting up White House commission for study are filed, but aren't expected to get anywhere (p. 3). ANTI-PAY-TV LOBBY is organized by movie exhibitors. Will back Harris resolution with $100,000 kitty for legal, engineering & publicity expenses, (p. 5). Advertising WHO'S SO EXPENSIVE NOW? New NBC study shows TV cost increases have matched circulation increases while print media costs have risen far beyond circulation gains (p. 3). ADVERTISING & ETV: J. Walter Thompson pres. Norman Strouse thinks ad industry should explore developing ETV. Heads of other big agencies decline comment (p. 17). FCC WEIGHS JUSTICE'S ANTI-OPTION TIME VIEWS: The whole question of option time is now finally & completely before the FCC, with Justice Dept.'s submission of its formal opinion this week — that option time is a violation of anti-trust laws. Commission also released its "findings" on the subject. There was no surprise in either document. Justice Dept, hasn't kept its views secret (Vol. 15:2), and FCC's 4-3 vote holding that option time is "reasonably necessary" to network operation has been known for some time (Vol. 15:3). What next? FCC will study Justice's opinion, for weeks if not months, then produce a final opinion on fate of option time. Commission has many alternatives, but it's a good guess that the 4-man majority (Doerfer, Lee, Craven, Cross) will insist that option time is in the public interest. If it does, it's then up to Justice Dept, and/or private litigants to bring action against networks in the courts. FCC's major alternatives ore these: (1) Hold that option time is in the public interest— period. (2) Agree with Justice Dept, and abolish option time. (3) Modify its option time rules to the point that Justice will agree they're no longer illegal. (4) Agree that option time is illegal, but insist that it's necessary — and ask Congress to grant "immunity" for the practice.