Television digest with electronics reports (Jan-Dec 1959)

— 3 — The FCC If lore about ACTION ON PAY-TV FRONT: After many fits & starts, the FCC and House Commerce Committee got together this week to resolve the hot pay-TV issue. They joined in challenging subscription-system proponents with, in effect: Okay, go ahead & demonstrate what you’ve got. But you’d better have lots of money and you’d better behave if you don’t want to lose it. In consultation with arch-pay-TV enemy Chairman Harris (D-Ark.) of the House Committee (Vol. 15:12), the FCC promulgated its 3rd report on the subject. The 12-page single-spaced document (Docket No. 11279, to be available from the Govt. Printing Office) supersedes the FCC’s first report of Oct. 1957 inviting toll-system applications (Vol. 13:42) and 2nd report of Feb. 1958 holding off approval of tests pending congressional action (Vol. 14:9). Main points of the 3rd report, bringing FCC policies in line with stipulations wanted by Harris to ward off quick establishment of any pay-TV system: (1) Applications for pay-TV tests limited to one market per system and one I system per market will be accepted. (2) No pay-TV pro. gi’am may be broadcast simultaneously over more than one station. (3) Viewers of test pi'ograms must not be required I to buy any special equipment which they don’t need for free TV. (4) Trial operations will be permitted for 3 years ( only. (5) Test authorizations will be confined now to 20 j markets with 4 or more commercial TV stations. In spelling out its test terms, the FCC noted at the I outset: “It is our belief that the action herein proposed 1 would be consonant with current congressional considera) tion of the subject.” The Commerce Committee promptly met in executive ( session, voted 11-10 for a committee resolution proposed by I Harris, concurring with the 3rd report. It said test results : “could be helpful to the Congress in determining whether I or not legislation should be adopted to authorize subI scription TV on some extended or permanent basis.” * ♦ * * Put on the shelf by Harris — but not formally withdrawn by him — was his sweeping resolution (H.J. Res. 130) against all forms of pay TV (Vol. 15:3). As drafted, it was aimed at wired systems (which weren’t covered in the third report) as well as broadcast subscription transmissions. But it did permit rigidly restricted tests to see how the systems work. After the close vote on his Committee resolution, Harris pointed out: “The vote here today shows that some individuals [on the Committee] are opposed to the system to the extent that they don’t even want to permit any tests.” The implication was that regular pay-TV operations were still far away, tests or no tests. On the House floor later, Harris expressed his satisfaction with the way things were working out. He said “it would seem unwise to prevent the conduct of test operations of any new development,” adding: “Under the limitations of the 3rd report, the financial risk is placed where it belongs — namely, on the promoters of subscription TV — 'and these promoters are on notice that there is no assurance that at the end of the test period of 3 years they will be granted authority for continued operation.” Harris said that the earlier FCC policies on the issue were “so broad” that thex’e was “grave risk” permanent pay TV might have been imposed on the country before it knew what was happening. There was no immediate leaping for joy over the 3rd report by pay-TV promoters — and no rush whatever to apply for test authorizations. Principal proponents told us, however, they were proseeding with plans — without stating specifics. Zenith public relations dir. Ted Leitzell: “It will require study, and we again have no comment on w’hat we are going to do. But we have plans.” Teco pres. S. I. Marks: “We’re working on our plans now. We aren’t ready with a definite program, however, and there’s nothing we can disclose now.” Teco is Zenithsponsored. International Telemeter pres. Louis A. Novins: “I’ve just read the text of the FCC order. We’re prepared either way — closed-circuit or on the air. We certainly intend to move ahead.” Spokesman for Skiatron Electronics & TV pres. Arthur Levey: “We have plans ready, but they can’t be disclosed now. The decision on specifics is being studied very strongly now. The details as to specific time & place will come from Matty Fox.” Skiatron TV’s pres. Matthew Fox, who holds U.S. rights to promote & market the Skiatron system, couldn’t be reached for comment. Neither could senior v.p. Basil Estrich. Their N.Y. offices said they didn’t know where either could be found this week. Teleglobe issued the only formal statement on the new situation. Pres. Solomon Sagall said he “welcomes the decision,” that Teleglobe “is ready to participate in such tests and will announce its detailed plans shortly.” He elaborated for us: “We still have a long row to hoe, but this is the opening wedge. Maybe the public won’t go for it. Maybe it will be a complete flop. But we’ll find out.” Spokesman for CP-holder WSES (Ch. 29) Philadelphia, the only “applicant” for pay-TV test authorization under the FCC’s previous policy (whose filing was regarded as incomplete by the Commission) : “We’re playing the same game of watchful waiting. We certainly aren’t abandoning our application.” Meanwhile there was a West Coast echo to the Washington pay-TV controversy, A public utilities subcommittee of the Cal. state assembly drafted a law forbidding the charging of TV fees for any program available free “in any part of the state or in any other state.” Note: Jack Gould of the N.Y. Times summed up the situation as “another installment in the continuing situation comedy of pay-as-you-see TV.” He wrote that “a new type of reward for adventurous free enterprise” was being offered by the FCC to pay-TV promoters. They “are invited to invest all sorts of millions of dollars” without knowing whether they’ll ever get on the air regularly. ■ Spectrum study to be conducted by the House Commerce Committee (Vol. 15:12) still has no staff chief, but one man being considered for the job is Dr. Irvin Stewart, FCC member 1934-1937 and retired as pres, of U of W.Va. He served recently as a member of the 5-man Presidential Special Advisory Committee on Telecommunications (Vol. 15:6). Meanwhile, militai’y spectrum experts inform us they’re working on their analysis of FCC’s allocations proposals, as indicated at the NAB convention last week by Lt. Gen. Ai-thur G. Trudeau, Army chief of research & development (Vol. 15:12), and they expect to be through in a month or 2 — after which their comments must go through the Dept, of Defense and OCDM.