Weekly television digest (Jan-Dec 1960)

VOL. 16: No. 20 3 KRON-TV s petition to Court contained many of WBC's allegations. In addition, it repeated charges made in complaint to Justice Dept. (Vol. 16:17 p5): that NBC tried to buy KRON-TV cheaply (for $8 million) by threatening to buy KTVU and shift NBC-TV affiliation from KRON-TV; that when KRON-TV agreed to sell at "a fair price," NBC declined to hike its offer, then bought KTVU. It charged RCA & NBC with "conspiracy" and "restraint of trade" in violation of consent decree. Meanwhile, Philco is studying whether to try to intervene, too. Actually, of all legal maneuvers to date, Philco's application to compete with WRCV-TV's license renewal (Vol. 16:19 plO) is probably most productive of obstruction to NBC's plans. FCC must conduct a comparative hearing, which normally takes a year or more — and if Commission decides to include Philco's anti-trust allegations against RCA-NBC as issues in the hearing, the litigation could run for several years. It could even extend beyond the Dec. 31, 1962 deadline by which time consent decree says NBC must divest itself of the Philadelphia stations. NBC's answer to all the foregoing is this: Justice Dept, described consent decree as "fair & equitable to both sides." Justice has investigated Son Francisco purchase and offered no objection. No one else has legal right to get involved. NBC is "flattered" that WBC doesn't want to lose NBC affiliation. However, WBC & KRON-TV "are seeking to place their private interests above the public interests which the consent decree was designed to serve." Rep. Celler was most unhappy with Justice Dept., telling Bicks: "I am profoundly disturbed by your failure to object . . . Your failure up to now to interpose objection makes a nullity of the decree or demonstrates that the decree is worthless." It's assumed that imless yoUng (33) Bicks recants, old (72) Celler will fuss more, probably conduct hearings, try to get Senate to delay Bicks' confirmation. All this is fine business for lawyers — and the galaxy is luminous (for list, see p. 7). SUMMER AUDIENCE HAS GROWN: Summer viewing at home is up 8.3% since 1955, according to new A. C. Nielsen study for TvB issued as "It's the Some Faces in the Summer." "Virtually as many people view TV in summer months as in other times of the year," finds the svuvey. Highlights: (1) 94% of TV homes view nighttime TV in a typical March week vs. 91% in a typical August week. (2) Network TV billings for July-Sept. have increased 53% in the past 5 years. (3) Daily home hours of TV viewing are up 48.9% during this time. (4) During an average summer minute, viewing has jumped 49.1% since 1955, TvB reported. HIGH COSTS or PAY TV: Partial & conjectural answers to one big question which pay-TV promoters usually avoid — how much would it cost to get system going? — can be dug out of stipulation of facts signed April 28 by Skiatron Electronics & TV in its SEC stock-registration case (Vol. 16:18 p21). "Initial requirement" of about $13 million would be needed to set up wired pay-TV system projected for presumably fertile customer field — densely-populated area of 102,500, half of whom could be counted on to take service — according to SEC document. And stipulation stresses Skiatron's present inability to get that kind of money. "Imponderables" go into any such pay-TV calculations, stipulation warns. But Skiatron's licensee (Matty Fox of Skiatron of America) is quoted as authority for estimate that grid installation costs alone for servicing 102,500-population center — not counting programming, billing system, etc. — would reach $9,747,000 when 50% of potential subscribers take service. Arithmetic of estimates of required investment assumes that, as grid is built, half of homes passed by it would join system — 20,000 at start, increasing at 7,500-per-month rate. Operation would take "initial estimated disbursement of $2.9 million, increasing at the rate of $622,500 per month, or totaling $9,747,000 to service 102,500," stipulation says. But what if pay-TV acceptance is less than 50 %? In any event, how much will subscribers be willing to pay to help promoters recoup investment? "Market surveys of both these factors have been made, but the degree to which they will reflect the realities of the situation must naturally remain in the realm of opinion," stipulation concedes. "Given a lower rate of acceptance than the 50% assumed, costs would increase by the necessity for expanding the grid system," Fox is quoted. "At 25%, the initial cost is estimated at $3,157,000; and at 12V2%, $3,414,000. Expansion costs per month would similarly be proportionately increased." SEC stipulation adds this cautionary note: "However, an initial investment limited to 20,000 sub