Television digest with electronics reports (Jan-Dec 1959)

VOL. 15: No. 27 3 THE OLD ORDER CHANGETH: Last week saw 3 major changes in long-established alliances & allegiances within the now-TV-dominated film industry. All have been brewing for many months, and though it's coincidence that they broke the same week, each in its own way points up tremendous importance of TV in Hollywood's new scheme of things: ( 1 ) Five-year-old Walt DisneyABC alliance began to crack up with Disney suit against the network to invalidate their contract. Agreement was front-page news in 1954 (Vol. 10:14), and, according to industry talk, was signed because ABC was only network willing to cooperate in ownership (and promotion) of now fabulously successful Disneyland Park. Disney obviously is anxious to place his shows on other networks and into syndication — prevented by exclusive ABC deal. He also would like to buy back ABC's share in Disneyland Park for 10 times what the network paid for it. It's understood that Disney — in addition to seeking wider variety of outlets for his TV shows — is somewhat irked by movie-oriented ABC's increasing chumminess with Warner Bros, and 20th Century-Fox. Thus one of the few exclusive movie producer-TV network deals seems destined to come to an end. (Details on p. 8.) (2) Ziv TV Programs Inc., one of very biggest TV film producers & syndicators — and certainly the biggest privately-owned TV film company — changed hands last week in $14 million deal with investment bankers F. Eberstadt & Co. and hazard Freres. Probability is that stock will be offered to public, but there's also talk that United Artists — now expanding broadly in TV — may buy in. Deal follows by 6 months the public sale of stock by another huge TV film entity, Desilu Productions. (Details on p. 17.) (3) Republic Pictures, first movie major to go all-out for TV, was sold, veteran pres. Herbert J. Yates stepping down as its leader and controlling stockholder. Object of stormy stockholder complaints, Yates' policies have been strongly TV-oriented — and before most majors were in TV at all. Republic was making more money from TV than theatrical films. Most controversial of Yates' actions had been release to TV of post-'48 features — which resulted in talent unions' barring Republic from film production. Republic's important activities now include its Consolidated Film Labs — largest processing labs in industry — its TV-film production lot and its TV feature film backlog. Under new management, company may be free to go back into production of TV and perhaps theatrical film. Thus Republic — by changing its ownership, management, and possibly its name — may have found neat formula for negating talent unions' blacklist. (Details on p. 17.) Note: TV's effects on network radio were felt again in another major shake-up last week when woebeset Mutual network filed voluntary bankruptcy petition with liabilities of $3,195,207 and assets of $579,607 and was taken over by another set of new owners in 4th management change in 2 years (see p. 7). ALLOCATIONS SOLUTIONS STILL ELUDE FCC; FCC's attempts to implement its proposed "interim" TV allocations plan (Vol. 15:17 et seq.) — addition of a third vhf channel to major markets by cutting mileage separations — continue to be unsuccessful. A meeting last week again came to no conclusion on how to do it. One important development, however, is a fairly strong agreement among Commissioners that a cut to as little as 130 miles, researched by staff, would produce so little that it wouldn't be worth the candle. Furthermore, it would require what is regarded as an unreasonable amount of channel shifting among operating stations, plus too many transmitter-site moves. Some Commissioners are becoming discouraged about the mileage-cut approach, and it's possible that FCC may have to decide that the concept just didn't prove out. Commission is due to give Senate Commerce Committee a progress report in testimony expected later this month. Commission continues negotiating with Office of Civil & Defense Mobilization, to determine whether more vhf channels can be obtained for TV — but there's nothing conclusive yet in that area either. An FCCOCDM progress report is still due about July 15, but it won't give any flat "yes" or "no" answers. FCC will continue the status quo for some time, therefore, continuing its truly painstaking study. "We'll have the facts," says one Commissioner, "something we've never really had before. Then, I believe, the answer will suggest itself quite obviously. It doesn't now." Commission has concluded its big 25-890-mc hearing (see p. 6), but it can be assumed that no major shakeups will be ordered among all the services using the space, pending resolution of the TV problem — because TV, particularly uhf, occupies a big chunk.