Weekly television digest (Jan-Dec 1963)

2-TELEVISION DIGEST SEPTEMBER 2, 1963 Break up film "exclusivity. ” There's some sentiment for looking into legality or desirability of "territorial exclusivity" contracts made with stations by program syndicators. In discussing this pro< posed remedy, Comr. Lee told us that proponents of plan argue that, since wire services' territorial exclusivity pacts have been banned, there may be case for similar action in program syndication field. Increase multiple ownership. Lee continues to favor modification of group ownership rales to . perm.it single entity to own up to 5 v's & 5 u's. "It may help solve the program problem by attracting big money to uhf, " he said, but conceded "there's a case against this; if the large broadcasters havenot utilized their right to own 2 u's, they may not be interested in 5, either. But I believe that if the opportunity is big enough, it will attract the big dollar. " Pay-TV possibilities. There seems to be general belief that if pay TV succeeds it will help uhf, since there are vey few areas with a 4th vhf available for subscription programming. However, payTV projects to date (both wired and on-air tests) have suffered from same problem as uhf— scarcity of programs. William Putnam, WWLP Springfield, Mass., who heads CAB's pay-TV subcommittee, while agreeing that pay TV could provide additional program source, is anxious to avoid impression that uhf's future is tied exclusively to subscription TV. Attitudes toward CATV. Uhf'ers are extremely concerned about competition from CATV systems. CAB has asked FCC to forbid CATV systems within Grade A contours from carrying programs of distant vhf stations if they're also available on local uhf outlets. Raising financial requirements. To prevent stations from going on air without sufficient financing to pay for adequate programming and withstand early losses, there's been much discussion of increasing financial requirements for uhf station applicants. As Comr. Lee expressed it, an applicant in top 25-30 markets should be prepared for heavy losses first 2 years, anticipate turning profit corner in 3rd. (For Lee's views on manufacturer-dealer problems, see p. 7). CAB'S ratings subcommittee, headed by Adam Young, is looking to larger samples in mixed vhfuhf areas to reflect uhf viewing, as one possible source of helping to call uhf stations' potential to attention of advertisers & agencies. "Agencies are interested in one thing," says Managing Dir. Lawrence Webb of Station Representatives Assn., himself a onetime uhf station manager— "show them an audience." Problem was summed up by James O' Grady, Adam Young exec, vp and vice chmn. of CAB programming subcommittee: "Uhf broadcasters & salesmen are no longer concerned about technical considerations. It' s the programming that has to be developed. " LOEVINGER FORESHADOWS 'TOUGH' ROLE: FCC Comr. Loevinger's maiden speech was one to send chills racing up & down the spines of major broadcast interests. In opinion of many broadcasters, it labels him as the man to watch, from standpoint of regulatory toughness. Address by new commissioner didn't produce same national shockwaves as 1961' s earthquake in the vast wasteland, because it was aimed more directly at broadcasters— not general public. But it hit hard at 3 sensitive areas: Multiple ownership, concentration of media control, commercial limitation. Speaking before convention of Association for Education in Journalism at Lincoln, Neb., Loevinger revealed himself as literate, independent thinker, with original ideas. As well befits'forlner Justice Dept, anti-trust chief, he devoted good part of speech to "monopoly, " came out strongly for re-evaluation of multiple ownership, duopoly, and newspaper ownership yardsticks. He also made unique proposal that broadcasters be required to devote at least as much time to news as to commercials. He made no specific suggestion for change in multiple -owner ship requirements. He conceded, in fact, that "there are practical & legal difficulties with divestiture [of] present broadcast holdings, " but opposed "any significant increase in the concentration of control of the mass media. ” "Mass media, " in fact, is key phrase in Loevinger's view of ownership situation. He indicated hefavors virtual case-to-case consideration based on media control, as opposed to hard-&-fast limit of number of stations which could be owned. "In considering multiple ownerships, " he said, "the Commission should not count by arbitrary categories, but should consider all other interests & affiliations( in the communications field. It makes no sense to say that a man with 7 small AM stations cannot