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I would like to state that the consen-us agreement, in my opinion, 1.tally a legend. It was pushed down the throat of the cable tele Unutinduery, in my opinion, by the White House. If you like, I can PU!!. on that.

Mr. KATY WER. I'm sorry, did you say that you were present at the time!

Mr. Bevas. I was present at the NOTA board meeting.
Mr. Ris) VYHR. For a diferent corporation!

Mr. Beansin. Jo: I was with Teleprompter. But Toleprompter's puntoon #3 wing determined by the then Teleprompter manageinent. I but junt jo.ned the company whortly before then by virtue of the merger of my company into Teleprompter.

Mr. Karin. And you said it was "hosed down the throat" of the cable people. How about the other partire, might they als) haip been somewhat unwilling, or unenthusiastic about the comprom the recredi

Mr. Brian. I doubt that they had too little to be unenthusiastic alont, -r. At the time that that happened, the cable telosion industry haillean frozen formelt oli tos var n we were in a very deep frume for about 31 from 1W-logh 1971.

Ipping the winner of 1971 the FCC 11:ed propwal new rules why would lift the fronte on the telesnon, and then started to bewok porty ground for all to let yn01. after a londry -*!1.

1'e in litla of 1971 tetten ('larman of the FiTwtta breter of 1184 to Congram, potplantilla therules that the Common propotopit. Shortly thereftet.what of the bootting Profistiklit, althole to los el peli-t1.0-4 were invited to a Wulan I. ***!!!!!!!rnet trilt of t. ut *tig won that this listede 2011-trilised at the clark Twer toll!! 1:0)

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V: RALLBACK. Which year was that?
M. Bassan. 1974.
M: RAILSBACK. Well, in 1974 Telecommunications had contri
terard that 17.2 percent of the 15 companies.

U: Brassar. Yes.
M: RALLABACK. I think that is all I have.
M: KASTEN MEIER. The gentleman from California, Mr. Dan
M: DANIELOS. Thank you, Mr. Chairman.
After this consent agreement which I think we all have hear
bost recently, do you know whether the cable industry had an
2 miting it, preparing it! That is the Consensus Agreement.
Y: Brisxas. I don't know, sir.

Mr. Danielson. You are not saying that the cable industry per anate in the preparation, you are saying you don't know

tid.
M: Bressan. I am saying I don't know.

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Well, this committee is not party to such a bargain, but I supfuse we might take note of it.

Mr. BRESNAN. The rules that we were hoping to get out of the Fu we did not get. And I recall such powerful words--I think they were attributed to Peter Flanigan-"There will be a blood bath for calva television."

Mr. KASTEN MEIER. Well, that has not happened either, has it!
Mr. BRESNAN. We seem to have gotten everything.

Mr. KASTENMEIER. The Chair yields to the gentleman from L.
Mr. Railsback.
Mr. RAILSBACK. The blood bath was earlier, wasn't it? (

LS Do you think we could have a copy of your annual report a referred to in your earlier testimony, would that be possible!

Mr. BRESNAN. Yes, sir.
[The material referred to is in the files of the subuhitta.

Mr. RAILSBACK. Do you recall the reason for what apprar to tre extraordinary loss to your company in 1973 !

Mr. BRESNAN. Yes. Teleprompter (orp. was expanding into saler of the top markets. Teleprompter, I guess, was probably atten.se to do more to prosecute the intention of the FCC rules than any ol.az company. It was not getting subscribers as fast as it was bunday plant. It stopped construction in a number of systems, and Swed down construction in others. It changed its whole mode of ourat: if you will, from that of a construction company to that of an ofura! ing company.

There were significant operating costs and losses, and there was some write down of a sets due to this change.

Mr. RAILSBACK. So, it really was, or could be characteriad as a extraordinary loss, or a nonrecurring loss.

Mr. Bressan. Well, of part of it you could say that. However, is 1974 the industry also had a loss.

Mr. RAIL BACK. You went from $20 million down to about $7 ml lion!

Mr. BRE SAN. Yes. And the interesting thing, Mr. Railshack, w picked up a bit of information this morning from a very well-rempetre? Cable analist, and he tells us that of the 15 publicly held compan which represent 4.2 million of the 10 million cable suliensit! those gystems combined showed a net loss in 1974 of $1 million.

Now, we don't know how much profit or loss privately held panies would have because we don't have acions to that informatie But we putimate that the entire industry last year did not operate at a profit.

Mr. RATTACK. Let me just mention, the Wibit attached to rour testimony reflects that the nine largrut public CATV companies, then

1977 lors of $16.3 million; but 17.) prent of that total figure Was Televommunications; and in the year 1973 there was a lom, a net income loss of $279. There is a figure that you had that vear, and this is part of the total figure, that your company had a 97. Two com panies have a rather were impart on the total figure in both year, Four Tolecommunications and Teleprompter.

Mr. BRAV. No question about that, sir. Ilowever, the fart me mains that in 1971. at which time Teleprompter did not have a real large loss, as we had in 1973, the top 13 publicly held companiew ferred to just a moment ago, had a net risult of a 8.31 mullion loma

M: DANIELSON. Do you know of anybody who does know?

M:. Bassan. We believe it was drafted by OTP. There wer s nadiend, where the participants included representat ***NCTA and the broadcasting industry, and I believe the aistry

. I don't know whether they were actual drafting sessi

odont.
Mr. DANTILOON. But your opinion is that, at least subseq
tonee meetings, the agreement was drafted by, in your opinioi

BRESSAN. Yes, sir.
V Danielson. Which is Office of Telecommunications

T W. Pressan. That's correct. M• Devirison. Were you present at the meeting where y on magst this or rou get nothing! Wo Bupakan. The meeting with Mr. Flanigan? 11. Dirty . Well, you referred to a meetingM. Piperak. I was present at a meeting of the NCTA boar is arka of the meeting with Mr. Flanigan were reporte

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Distais. In other words, someone reported to you
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W Pasaris. That is correct.
V-Tmnik. Who reported that to you?

V Boxsan. The person I remember specifically who gav
one or moreirg at that time was Gary Christensen, who at

im! mins to NCTA.
V. TAK. And he made that report to a group of
for Telefann A-sociation people, which included yoursel
4. Peranan That is correct.

W DN171603. Do you know whether there were any chan
oma Wory lined consensus agreement after that time, befo

V. Ponssex. I can't reall, sir.
• Destroy, You recall no changes, but you do not
*** Pion charges, also; is that correct?
Yo Rosmar. That is correct.

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Mr. RALLSBACK. Which year was that!
Mr. BRESNAN. 1974.

Mr. RAILSBACK. Well, in 1974 Telecommunications had contributed toward that 17.2 percent of the 13 companies.

Mr. BRENNAN. Yes.
Mr. RAILRACK. I think that is all I have.
Mr. KASTEN METER. The gentleman froin California, Mr. Danielson.
Mr. DANIELSON. Thank you, Mr. Chairman.

After this consent agreement which I think we all have heard a lot about mcently, do you know whether the cable industry had any part in drafting it, preparing it! That is the consensus Agreement.

Mr. Brisxax. I don't know, sir.

Mr. DANIELSON. You are not saying that the cable industry did not participate in the preparation, you are saying you don't know whether they did.

Mr. BRES NAX. I am saying I don't know.
Mr. DANIEL FOX. Do you know of anybody who does know!

Mr. Bressan. We believe it was drafted by OTP. There were meetinga conducted, where the participants include representatives of the NCTA and the broadeusting industry, and I believe the copyright industry. I don't know whether they were actual drafting Pasions. We could find out.

Mr. DANIFIKON. But your opinion is that, at least sulpuent to three meeting, the agreement was drafted by, in your opinion, OTP,

Mr. BarexAX. Ypsir.

Mr. Danirison. Which is Office of Teleommunications policy, I believe

Mr. BRYSTAV. That's correct.

Mr. DAVITION. Were you present at the merting where you wem told, yon got this or jou prit nothird!

Mr. Baratav. T!, meting with Vr. Flanigan!
Mr DANTIMOY. Well, you referred to a minering

Mr Bretar I was present at a meeting of the WTA lariwhere the rumiarks of the meeting with Mr. Flanigin were troported to the ward

Mr Devir. In other worile, someone rreported to you tha huit forti si

Mr Bris That is corrit
VE TANITIMIS 10 Protect it to you!

Mr BRY***, Tor permain I remesluit ***!! #logit quite a bit of reporting at that time walinry ("},risfat), !o at that time **** (**) Tal conto WTI.

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Mr HryssAN T* cornet

Mr Danman Tho vou know wlett. op koeransel andis mula in the wallee ronensus agtermert after it at tv, bw.fore it Hijmeel!

*' . Mr DANNINY. You all nor!!!" button tot in all that there were nord ar{**** also); intal corrett

Mr H***** T) atinou

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Y-DACTA. Thank you. M: Dilson. Anyway, does your work include the contrar Lo Barnasong through television stations by the clients of 14."agency! Va lista. Vot directly, sir. I advise our buyers and play l. Enda available to them to buy. I am not directly inv.

Nax. But that includes advice as to television audie V DA Cieta, Yes, that is my area of expertise, I am ch 1" "marxarch at Ted Bates.

Hl: D'AMITIN N. The Ted Bates Co., I'm pretty ignorant ir ham tiny a pretty well-established firm? VIATA. Ven they are the fifth largest agency in the cour

M: DAXILLON. Do they handle major clients, major indu

Mr. DANIELSON. You do not recall any changes, but you also do 14 know if there were no changes.

Mr. BRESNAN. That is correct.

Mr. DANIELSON. Were you an officer of Teleprompter at the time agreement was signed?

Mr. BRESNAN. Yes, I was.

Mr. DANIELSON. Were you at a policymaking level at Telepromp at that time?

Mr. BRESNAX. No, sir.

Mr. DANIELSON. Do you have any knowledge as to whether or Teleprompter would have agreed to the so-called consent agterne: but for the threat that you reported, that you would get this, or would get nothing?

Mr. BRESNAN. To my knowledge neither Teleprompter nor ar..* else at XCTA would have accepted that agreement, were it out furie threat; that was the feeling I got.

Mr. DANIELSON. Were you at the meeting of the NCTA people wxT it was reported !

Mr. BRESNAN. Yes, I was.

Mr. DANIELSON. And can you tell me whether your feeling, wil am going to describe as a negative feeling for point of referente; ca: you tell me whether that was shared, as far as you can tell, by others'

Mr. BRESNAN. As far as I can tell, sir, it was. It was a very, very gloomy meeting at which we were told we would have to acope thing which we all knew was bad for our industry.

Mr. DANIELSON. Directing your attention, now, to the two charta the side wall which your colleague pointed out a while ago. I nutet at the upper one depicts what I am going to call New England, Pei.is vania, New Jersey, New York, and up through to Maine. Purt: the map are in a dark gray, and portions in white.

It is my understanding that in the white area, the area tl.at ::::: cumscribed by a heavy dark, black line, is the primary 1. wing arra of the New York ('ity television broadcasting stations; am Irati that!

Mr. BRESNAN. Yes, sir.

Mr. DANIELSON. And beyond that heary line there continue to live, : irregular formation, other white areas, reaching from uppmr Neuli back all the way, I guess, to the St. Lawrence River to ('anava: does through New York, one leg going out to a lake I can't name it.

Mr. Pattison. Atlantic. (Laughter.)

Mr. DANIELSON. Another leg going down to the Pennsylvania ern end, again western boundary. Do I understand your tout mori? Bons that those white areas are included within the potential views audience of the New York City television stations, in conjuntjof, with their advertising rate sihedule. Am I right, or wrong on that!

Mr. BREXIX. You are right.

Mr. DANILOV. I would like to ask a question, anu a think it's real's for Mis Da Cota. I under-tand Min Da Costa is a professonai ai vertising any pron:am I correct?

Vin Da Crmni yanir.
Mr. PASTILOY. How long have you been so emplovel!
Mi Di Comra. More than I care to admit, about 317 318!",
Mr. DANIILaon. Well, you started as a child, then. (Laug'.r.]

Y-CRTA. Yes, sir, many of them. M DANILION. Not Joe's Used Car Lot. V slinta. All of our clients are national accounts. M: DANIEL S. I like Joe's l’sed Car Lot-[Laughter.] Tapexpertise in big ones. Viets. All of our accounts are national accounts. H. Diflux. Then, the statement which I mademI was 5! I arrestand you correctly. Do you know of your ov

Towns that in computing the advertising rates wh "To national accounts by the TV stations for their

the audience encompassed in these white areas in the V. Yes,sir.

Dl. I don't suppose you handle the California a
Vinta. No sir.
V. DS. There is a similar chart there, maybe the

in. Were did you obtain these charts, what is the

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! W Bixxas. The Association of Independent Television S W IM VLAN. And can you tell me what that is?

W Borakis. A group of broadcasting companies that are n per Work companies. MD) ins. And someone has simply copied these ma

V Pilvis. We have brochures that this Association of
2.0, pit ont.

ili vs. And they are blowups, are they?
Wix. Exaitly.
Vu l'AY!04. I'm not going to ask you whether you copi

18:*ampyright problem. (Laughter.]
1. !at's truly what they represent,
en psik. Ya, sir.
Vu lwn. I ste that California and the Southwes

Nothie game analogies of white areas and

rogram, as in New York!
H. Dinas. As a matter of fact, I would like to

..M: Simon, would you find that line!

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M44 Da Costa. Thank you.

Mr. DasirLOx. Anyway, loes your work include the contracting for advertising through television stations by the clients of your advertising agency!

M1- Da Cola. Not directly, sir. I advise our buyers and planners of all media available to them to buy. I am not directly involved in buying

Mr. DANIEL. But that includes aulvice as to television audiences?

M. Di (ra. Yes, that is my area of expertise, I am charged with media rerhat Ted Bates

Mr. DANIH-08. The Ted Bates Co., I'm pretty ignorant in that field; aru they a pretty well established firm?

Mi Da Costa lis, they are the fifth largent agency in the country.

Mr. DANILLON. Do they handle major clients, major industries, bine!

M.41), GATA. Yes, sir, many of them.
Mr. DANILOV. Not Joe'd (ar Lot,
M: D. Corn. All of our clients are national accounts.
Mr. DANIM. Ilke Joe's (ar Lot (Laughter.]
You have experts in big ones.
MDA (min. All of our contare national accounts

Mr. DANILO. Then, the statement which I made I wasn't too kire if I understand you cornily. Do you know of your oun per. wef.al knowledge that in computing the midsertising rate which are Tharaid to the national accouhly the TV nations for their silver ti! In the alillent encollips in thesp white areas in the charts

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