Weekly television digest (Jan-Dec 1963)

4-TELEVISION DIGEST OCTOBER 7, 1963 ’There is nothing wrong with the pursuit of certainty,” he said. "But an illusory certainty can be fraught with danger. During our hearings, the idea was expressed several times that some figures, however inaccurate, are better than no figures at all. In view of the amounts of money spent each year on broadcast advertising, I would urge a searching reconsideration of that notion." Alluding to Securities Act, Howze said "single dominant obligation" of stock issuers was "disclosure" of information to protect investors, conceding that Act doesn’t pretend to protect those who would rather rely on "hot tip." He also expressed hope that FTC would take "increased interest" in ratings week "hypoing" by broadcasters, said agencies & advertisers should be willing to pay more for improved research. He stated that under FCC rules, broadcasters can’t solely program by numbers, urged ad community to "voluntarily assume responsibilities to the American people commensurate with those required of broadcasters." Regarding plans for methodology research, ARF' s Brown noted that group is consulting with RAB on its study, is "supervising" ARB studies on non-cooperation of diary keepers and possible bias in using sample drawn only from "listed" telephone numbers. He said specific costs for technique research would have to be underwritten by agencies, advertisers and/or media. Cummings called on ARF members to donate money to special fund to investigate audience measurement practices. TvB Pres. Norman (Pete) Cash came out officially for reporting ratings in ranges— "as the needed red flag." He added, however, that research experts say that "traditional range of error statistics cannot be applied to our audience measurement techniques." This in no way reduces our need for such figures, he said, urging that proper techniques be developed. Sindlinger & Co. held Washington demonstration last week, displaying method to show statistical range, using IBM 1401 computer. Company says range can be reported for every radio & TV rating produced for its national & local reports. Effective immediately, Sindlinger said, each rating will show low, middle & high points. At Chicago RAB Management conference last week, Robert E. L. Richardson, former Harris Subcommittee ratings investigator, defended himself against critics of his Dallas speech few weeks ago (Vol. 3:38 p3)^ He said he’s not seeking more broadcast clients as ratings consultant (he’ d J already signed Gordon McLendon), repeated his intention to run for Congress next year. He also j disputed charges that his ratings validation plan is impractical. He said ARB & Hooper both told him they'd be willing to have all their work checked. Richardson’s proposed plan would have ratings re-checked from interviewing to tabulating, was criticized for placing too heavy a burden on rating companies. We were also told by govt, source that not even FCC would require such checking by licensees. RKO-CATV GIANT WITH 100, 000 CUSTOMERS: Far -& -away biggest CATV operator— grossing per 1 haps more than $4 million annually from some 100,000 subscribers— will be RKO General, under deal *whereby it will acquire control of H & B American Corp. For pay-TV enthusiast RKO, which is test J, ing over-the-air toll TV in Hartford, deal gives it very respectable -sized nucleus for cable-TV pay I . system whenever it chooses to move that way. Deal is subject to vote of H & B stockholders in Dec. , presumably no problem. It puts together RKO’s 27 systems with 30,000 subscribers and H & B’s 24 systems serving 70,000. H & B is also i building 4 more, has franchises for additional 3. Agreement is rather complex: RKO subsidiary Video Independent Theatres will acquire 1, 550, OOOt H & B shares in exchange for all stock of VIT subsidiaries Vumore Co. & Mesa Microwave. VIT also! agrees to lend up to $2 million to H & B. VIT, which had previously bought substantial H & B stock om open market, will end up with about 56% of the 4, 626, 000 H & B shares which will be outstanding. H & B earned about $1.4 million, before depreciation, on sales of $4.45 million in fiscal year ended July 31, has tax credit of $3 million from previous losses. In same year, Vumore & Mesa had net operating profit, before taxes & depreciation, of about $1. 16 million on $2. 2 million sales. a.' t CATV & broadcasting industry continue to churn, meanwhile, with reports & rumors of system acquisition by more & more telecasting entities. Even networks are reported getting hot.