WEEKLY e.. eV1S1011Digest 1 F;Í '''!9 MARCH 6, 1961 .© 1961 TRIANGLr ITIOI3STAIE; -" VOL. 17: No, 10 n ` . The authoritative service for executives in all branches of the television arts & industries SUMMARY -INDEX OF WEEK'S NEWS Congress Consumer Electronics MILITARY HOGS THE SPECTRUM, charges Sen. Magnuson, taunt- NEW IN TUBES & SETS: No -reflection screen from Corning; ing FCC with timidity at 'federal -aid -to -ETV hearings. Ford Sylvania may resume color tube output this year; du Pont & Pitts- (p. 17). stumps for vhf -uhf sets (pp. 1 & 9). burgh implosion shields evaluated; revival of 17 -in. sets OVERSIGHTERS AT WORK AGAIN in new Subcommittee on Reg- NEW FRONTIERS for consumer electronics foreshadowed in 3 ulatory Agencies set up by House Commerce Committee Chmn. developments: First commercial electronic refrigerator, air-condi- Harris (D -Ark.) He'll head unit(p. 9). tioned garment, molecular radio (p. 18). Networks DISTRIBUTION OVERHAUL by GE may result from new planning COURT BACKS FCC NETWORK -REP DECISION, unanimously operation headed by Riegelman (p. 19). GE IN' FERMENT: On heels of company's anti-trust indictment, holding conclusions to be reasonable (p. 2). Ralph Cordiner resigns 1960 NETWORK :BILLINGS ROSE 8.8% to $682.4 million, reports Pres. Robert Paxton retires and Chmn. of Council (p. 19). TvB. December business increased 3.4% to $63.4 million (p. 6). chairmanship Business Advisory FCC Film Tape DICKERS DESILU. negotiations MINOW SWORN. Assumes FCC leadership as Justice Douglas WESTINGHOUSE FOR Hush-hush reminisces about the time he thought he would be Commission for the telefilm studio held in Hollywood (p. 3). Chmn. (p. 2). Stations AN "A" REPORT CARD ON SEC. 315 Presidential -campaign SPOT GAINED 6.3% in 4th quarter to $163 million, pushed 1960 behavior by broadcasters is filed with Congress by FCC (p. 11): gross -time billings to a preliminary $616.7 million total (p. 13). Programming Advertising TV VIEWING GOES UP. In Jan. 1961, it hit a near -record level MORE SUCCESS STORIES in local -level TV, this time for food of 6 hours per home per day, aided by snowy winter (p. 2). products, beverages and restaurants (p. 14). Auxiliary Services Finance McGEE BOOSTS BOOSTERS, reporting on problems found in. PHILCO AND RCA PROFITS FELL in 1960 (pp. 23 & 24). Western hearings, calling for FCC & Congressional action (p. 8). Other Departments H&B BUYS 3 CATV SYSTEMS. Approximately $1.3 million is paid FOREIGN (p. 12). TECHNOLOGY (p. 15). PROGRAMMING (p. 16). for properties in Montana & Arizona (p. 8). PERSONALS (p. 16). MILITARY HOGS THE SPECTRUM, SAYS MAGNUSON: Long -dormant issues of broad- casting -vs. -military use of scarce vhf channels were suddenly revived last week by Senate Commerce Com- mittee Chmn. Magnuson (D -Wash.). Military services are hogging the spectrum without known justification, and FCC has been too timid in challenging the armed forces to surrender some space to crowded telecasters, Magnuson said. He taunted the Commission for its acceptance-without further argument-of OCDM's decision last August that "national defense & security" require the armed forces to keep what they have taken (Vol. 16:34 p2). "What does the military do with all these 'y' channels?" Magnuson asked FCC Comr. Ford, who had been testifying on educational TV allocation problems at the Committee's hearings on Magnuson's fed- eral -aid -to -ETV proposals (see p. 9). Magnuson didn't press for answers, remarking that even if he knew, Ford couldn't tell. Military just stamps "secret" or "classified" on any answers to such questions-and inquiries about actual military uses of vhf always seem to stop there, Magnuson complained. "Experiments" also are cited as the excuse for not yielding unutilized channels for civilian use, Magnuson went on. "Sure, they'll tell you they're experimenting. And if they aren't, they'll think one up." Magnuson promised he'd try to get some answers this session. He issued no summons to OCDM or Defense Dept. and scheduled no hearings on spectrum. But problems of TV allocations are high up on the Commerce Committee's investigations agenda for 1961 (Vol. 17:8 p9). www.americanradiohistory.com 2 MARCH 6, 1961 COURT BACKS FCC NETWORK -REP DECISION: FCC's spot-rep decision forbidding networks to rep stations other than their o&o's (Vol. 15:41 pl et seq.) was sustained by Court of Appeals last week, to few observers' surprise. Unanimous decision by Judges Bazelon, Phillips & Washington, written by Bazelon, was mere 3 pages. It rejected out of hand the arguments of NBC and 4 repped stations. (CBS didn't appeal; ABC isn't in the business.) First, Court said, FCC has adequate legal power to make the decision, and "we cannot say that these conclusions, based upon findings, supported by substantial evidence, were erroneous." Second: "Nor can we agree that the regulation in dispute is'unwarranted on the basis of petitioners' claim that its promulgation is rested merely on a potential evil of restraint upon the independent responsibilities of licensees affiliated with the network and, not upon a violation of the antitrust laws. We need not decide whether the evil may fairly be characterized as 'potential.' For it is settled that practices which present realistic dangers of competitive restraint are a proper consideration for the Commission in determining the 'public interest, convenience & necessity.' And the elimination of this danger is consistent with the Commission's duty under the Act to 'encourage the larger and more effective use of radio in the public interest.'" Finally, Court rejected appellants' claim that FCC's action was "unduly harsh" and that less drastic remedies were available. "Since the Commission considered the alternatives presented," Court said, "and since we cannot say that the basis for their rejection is unreasonable, its action must stand." Repped stations joining NBC in appeal were KOA-TV Denver, WAVE -TV Louisville, KSD-TV St. Louis, WRGB Schenectady. Station Representatives Assn. backed FCC, and its counsel Harry M. Plotkin last week said: "We're gratified. Complete vindication." NBC Washington counsel Howard Monderer commented: "We're studying the decision, haven't decided whether to go to the, Supreme Court." MINOW SWORN, ASSUMES FCC LEADERSHIP: Newton N. Minow' is now on the job as FCC Chmn., sworn in March 2 in the most "public" ceremony on record-with more audience, photographers & reporters on hand than at any similar Commission occasion. Ceremonies were distinguished more by outgoing Chmn. Fred Ford's graciousness than anything else. He made certain that every FCC employe was invited-first time in history-and he held Bible as Minow repeated the oath administered by Supreme Court Justice Douglas. Among guests were Reps. Harris (D -Ark.) & Mack (D -I11.). Minow and his attractive young wife remained for some time to accept con- gratulations from the Commission staff and other guests. Before swearing Minow in, Justice Douglas noted that, 22 years ago, "I had expected to become Chair- man of the FCC"-something not generally known. Douglas inscribed the Bible as follows: "For Newton N. Minow, in the great day of March 2, 1961, with all good wishes and affectionate regards." Earlier in week, in Commission's regular meeting, Ford expressed thanks to colleagues for co-opera- tion, lauded Minow. Comr. Bartley, on behalf of other members, presented Ford with gavel made from the "Washington elm" --a tree reputedly planted by George Washington on grounds of Capitol. TV iJ S A O E AT NEAR -RECORD LEVEL: And now a message to those who say the public is sick & tired of TV programming: According to Nielsen, the average U.S. home TV set was viewed 6 hours a day in January-a near record. Figure is substantially higher than that of previous month, Dec. 1960, when the average TV home watched for 5 hrs., 41 mins. daily. Researchers we talked to were of the opinion that the upsurge, in part, was due to the blizzardy January weather throughout much of northern. U.S., which kept many families at their nighttime hearthsides-and TV sets In any event it's highest level in 3 years. Last big TV surge beyond the 6 -hours -daily level (which itself represents something akin to a 4 -minute -mile) occurred in Dec. 1957, when usage also hit 6 hours exactly, and in Jan. & Feb. 1958 when it hit 6 hrs., 6 mins. twice in a row. Jan. 1961 score is also up nicely from the Nov. 1960 score of 5 hrs., 47 mins. (Vol. 17:4 p7) when viewing was boosted by election, TV coverage. Because the TV base keeps growing, it's also a new peak in terms of homes. At night (7-11 p.m. all week), 62.2% of U.S. TV homes were watching TV at any average minute in Jan. 1961. Although the 62.2% figure is a bit lower than the 64.0% scored in Jan. 1960, when measured against the total U.S. TV homes, it produces the whopping average of 29,172,000 American families watching the medium. www.americanradiohistory.com VOL. 17: No. 10 3 TELEMETER STARTS A 'HOPE CHEST': Feature movies aren't enough to sustain program effort in a pay -TV system-you've got to produce your own TV shows as well. This was the tacit admission of Paramount -owned Telemeter in N.Y. last week with announcement by Pres. Louis A. Novins that the pay- TV system was starting a stockpile of taped TV specials. Telemeter has already ventured into the production realm in its Toronto pilot operation with live, and later, tape -repeat telecasts of "An Evening with Bob Newhart" (Vol. 17:2 p9).