Weekly television digest (Jan-Dec 1963)

2-TELEVISION DIGEST NOVEMBER 4, 1963 (5) Purchase of WBOY-TV Clarksburg, W. Va. by CATV operator there, Fortnightly Corp. , was set for oral argument Jan. 9 on policy question of such joint ownership. (6) Anxious to speed station sales action, Commission asked staff for ideas. In Sept. , 5 attorneys were added to processing group; it's expected several more will be detailed to task. Commission had the big agenda because Chmn. Henry was back from Europe but expected to return there Oct. 31. He didn't, so pressure eased. Now, he may not go back at aU, because space allocations discussions in Geneva seem to be going well. FTC CHECKS NIELSEN; NAB & RAB AGREE: Ratings hearings of last spring provided dramatic backdrop for major developments last week: (1) Nielsen agreed with FTC last week to open up its patents on metered devices to any applicant, to abandon alleged monopolistic practices which FTC charged had been going on since 1946. (2) NAB & RAB reached deal to partner radio methodology study aimed at finding technique that will adequately measure modern listening habits. Each will put up $75, 000 of needed $200, 000 for research to be conducted by Audits & Surveys Co.; RAB is to raise remainder. (3) Spectacular newspaper-wire service interest in new-season ratings, even for this time of year, has given Nielsen fretted brow. It's concerned over leaks to press in violation of contracts as well as repercussions in Washington. Sweepstakes atmosphere created by stories prompted this comment from Subcommittee source: "It doesn't look as though our hearings did any danm good." (4) WAME Miami, first station to sue as result of ratings hearings, withdrew its suit against Nielsen for $250, 000 compensatory damages & $1 million in punitive damages. Station is also withdrawing suit against Pulse. Practical effect of Nielsen consent order with FTC is considered negligible, according to observers we've checked, except to lend weight to legal battles Sindlinger & ARB had with Nielsen over . patent infringement. Suits were settled out of court, never decided on merits. * ' "The order is 12 years too late," said Albert E. Sindlinger, referring to 1950-52 legal suit over electrical Radox. ARB spokesman said order was at least 3 years too late, alluding to electronic Arbitron battle that lasted 3 years, cost estimated $250, 000, was settled as soon as CEIR acquired ARB. Under agreement, ARB has been paying annual royalty of $10,000 on Arbitron, which ARB developed and now uses only in N. Y. One effect of FTC order will be to stop royalty payment. It was also considered questionable whether Sindlinger, ARB or any other company would now make mad dash to get into mechanical device audience measurement, to battle with Nielsen's Audimeter. Sindlinger said one reason he finally settled out of court was his growing belief that a device with fixed panel of homes wouldn't measure listening adequately. He received $75,000 plus return of stock held by a Chicago group. He also commented that at time of suit. Justice Dept, was asked to intervene as friend of court but declined because it had no interest in ratings. ARB has been pressing for refinement of its diary technique, has all but abandoned plans for expanded use of Arbitron. One reason is its expense. Another is probably the one pointed to by most observers: As TV viewing gets more personal, meter device will lose many of its exclusive advantages. This happened in radio. Nielsen already had been using mostly diaries to measure local radio, until it abandoned that service recently. Nielsen's consent order is for "settlement purposes only and does not constitute an admission by respondent that the law has been violated as set forth in complaint," FTC stated. Commission charged that Nielsen had achieved monopoly of national TV & radio ratings, said that in 1961 rater's share was more than 90% of $4,532,000 spent. FTC alleged that Nielsen had entered into contr acts & combinations in restraint of trade, citing its 1950 deal with Hooper in which latter agreed to stay out of national TV & radio ratings. Company suppressed & restrained any device designed to compete with Audimeter & other Nielsen gadgets, FTC alleged, adding rater established monopoly of patents and discouraged— through harass ^ ment & coercion— development of other devices.