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JUNE 27, 1960
p. 12). But there was big obstacle to swift action on floor itself — demands by Rep. Bennett (R-Mich.) for controversial amendment putting networks under FCC regulation. Debate started June 23 but was interrupted by other House business. |
New Harris Committee bill banning ex-parte contacts with FCC & other agencies wasn't expected to get much further this session, although Harris said he'd try "for all progress we can." His Committee turned it out in assembly-line fashion, putting together sections of 1959 measure (HR-4800) drafted by Harris himself and a supplementary bill (HR-6774) prepared by American Bar Assn. Applied to FCC & rest of "big 6" agencies, it would; (1) Forbid off-record approaches to influence case decisions. (2) Set up $10,000 fines & oneyear jail terms for infractions. (3) Subject members of Congress to same rules as everybody else, but allow them to make inquiries about status of cases. (4) Permit President to fire agency members for neglect of duty or malfeasance.
Note: Still hanging in Senate was another piece of important broadcasting business — resolution (S. J.
Res. 207) suspending equal-time requirements for TV & radio appearances by nominees for President & Vice President this year (Vol. 16:25 p5).
HARTFORD PAY-TV TEST APPLICATION FILED: Zenith & RKO General, which have
been talking up pay-TV plans since March (Vol. 16:14 et seq.), finally made them official last week. They submitted formal application to FCC for 3-year test of Phonevision system, using WHCT (Ch. 18) Hartford.
Operation can't get rmder way before 1961, however — even if all goes well for Zenith & RKO at Commission, where application will get careful going-over. RKO's Hartford Phonevision, whose $900,000 purchase of WHCT already had FCC's approval (Vol. 16:23 pl4), said start would be made when 2,000 decoders have been installed — which "could be 6 months after the FCC authorization is obtained."
But pay-TV promoters professed themselves ready for big adventure in first on-air subscription project proposed to FCC since it issued third report on test requirements in March 1959 (Vol. 15:13 pi). Zenith & RKO already had indicated they were prepared to put up $10 million in capital investment to prove pay TV will work. Joined in application by Hartford Phonevision & Teco Inc., Zenith's Phonevision licensing subsidiary, they now spelled out plans in 3/ 4-in.-thick prospectus, much of it devoted to technical explanations of how decoding system works.
Among details in application: (1) About 300,000 homes in WHCT area are potential subscribers. (2)
In phasing Hartford operation, 10,000 families are counted on as signed up by end of first year. (3) Installation charge of $7.50-$10 will be made. (4) Subscribers may be assessed 75^ per week for "maintenance <& depreciation" of decoders. (5) Individual program charges will range from 25^ for "some features" to $3.50 for heavyweight championship fights. (6) First-run movies will be chief fare, supplemented by plays, opera, ballet, symphony concerts. (7) In line with FCC test rules, WHCT will be operated as regular commercial station most of day, no commercials will be shown on pay shows.
• • • •
Less glowing were present prospects for supplying subscribers with promised programs. Almost as afterthought. Zenith & RKO General listed some difficulties in final 2V2 pages of application:
(1) "Our proposals have inherent irremovable uncertainties xmtil the requisite govt, authorization is obtained."
(2) "In view of the uncertainties, and until they have been cured, an agreement to furnish specific product on specific dates under specific conditions cannot be made sufficiently definite & precise to constitute a firm commitment."
(3) "Arrangements between the distributors & producers & their respective independent contractors & joint venturers that may be prerequisites to commitments to the applicant are not feasible to undertake until the present vmcertainties have been removed."
(4) "There seems to be a natural unwillingness to upset or confuse existing business relationships so long as the public decision or position with respect to the tests could be postponed."
Zenith & RKO also "are aware of strong opposition from some motion picture exhibitors," application ( added. On this front. Conn, theater owners were mobilizing to stop Hartford experiment before it starts. They planned to hire lawyer to argue anti-pay-TV case before FCC, wage public-relations campaign.