Television digest and FM reports (Feb-Dec 1947)

NETWORK PROSPECTS HASTEN TV: You can expect some new TV applications during ensu ing weeks, if only because of promise of intercity TV links — both AT&T's coaxial and Western Union's microwave (Vol. 3, No. 24, 35). There weren't any this week, but we're informed that Hartford's WTIC (Travelers Insurance Co.) has reinstatementof its old application in the works, doubtless hastened by Empire Coil Co. application for same area last week (Vol. 3, No. 35). Also, our information is that St. Louis' KXOK (Star-Times) will reapply shortly. Hot after TV network carrier business. Western Union this week was revealed as having asked FCC for authority to construct microwave TV hookup between WCBS-TV, New York, and Philadelphia's WCAU (soon to be transferred to Bulletin, a CP holder for TV). Western Union and WCAU would each pay half of development and construction costs. Proviso Commission didn't like — and on which it turned scheme down — was that WCAU for 4 years would have first call on all TV programs emanating from New York end of link. FCC suggested WU go ahead on own as common carrier. Meanwhile, AT&T reports coaxial cable spreading apace — reported Wednesday that construction has started on New York-Albany link of coaxial to Buf f alo-Cleveland-Chicago . IS m SMALL BUSINESS? Now in hands of FCC, probably for early release, are results of its economics division's survey of postwar station costs and revenues. It will contain slim data on FM, inasmuch as only 5 FM stations have been licensed since the war (Supp. 53-C), hence are only ones with final cost figures. But AM figures may prove valuable, certainly will be interesting. All we can learn as yet is that they show radio is still a pretty nice business. Past experience has shown you usually can't place too much credence in government reports on radio's business side (witness the Blue Book) , even though they bear the authoritative imprimatur of Uncle Sam. We aren't passing judgment yet on FCC report, though some such in past haven't been much to brag about. But consider the roseate case for FM as small business published in the widely distributed, oftquoted Senate Small Business Committee Report of April 10, 1946 (Vol. 2, No. 15). Many an FM builder is literally appalled, toting up costs, wondering how he could have gone so cockeyed in early estimates. So he points accusing finger at report. As you reread it, you can't avoid conclusion it was guilty of a seriously misleading sin of omission; you almost go along with remark of one old radio hand, "The Committee ought to be investigated by the Federal Trade Commission." For example, in estimating construction costs, report gave figures only for major technical items. These costs have spiraled, and no one can blame committee for fog in that particular crystal ball. But hearken to these words of v/isdom in report: "Other items, such as real estate and construction, will be included in the cost of an FM station, but these figures make it abundantly clear that FM broadcasting is well within the reach of small-business enterprise." True, these "other items" are highly variable, but the Senators (who probably merely signed their names to unread stuff their bright researchers dug up) gave the ardent entrepreneur no hint that 9 times out of 10 the cost of "other items” made prices of "principal transmitting equipment" look like peanuts. For example, we know of one Class A whose tower alone cost §13,000; whereas median estimate on "major transmitting" equipment for this class of station (1 kw) was given as §14,758. Another broadcaster we know started to spend up to §50,000 for FM addition to his AM plant, ended up with §110,000 investment. And those FMers without existing AM plants, most particularly the low-budgeted little fellows (many of them veterans) who started out with so much zeal and ardor, soon found their estimates knocked even more cockeyed when they were impelled to file additionally for AM as a means of supporting FM until it could stand on its own fiscal legs. FARNSWORTH TY SETS NEXT: Next big-name TV set manufacturer breaking forth with sets is Farnsworth. Its table model (GV220) goes into New York, Philadelphia market in quantity next Monday, accompanied by advertising splurges. Its a TV-only set, 10-in. tube, selling for §349.50 plus §45 for installation and warranty, cheapest