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The list could go on and on. But rather than belabor the point, I'll simply submit these brochures themselves to the Committee.

What do the extra viewers that cable adds to the audience of these stations mean to the relationship between station and advertiser? It means that the station time is more valuable and so the advertiser pays more. Listen to what Jins Da Costa, who is in charge of all media related research at Ted Bates, the nation's fifth largest advertising agency, says:

"Viewing occurring on CATV systems has been included in surveys for quite some time in the total audience reported for individual stations. The industry has generally used these total audience figures to establish rates and corresponding cost efficiencies. This practice compensates stations for all viewing including that which takes place within CATV homes (both inside and outside the range of the station's off-air reception)."

To go back to our example, we see that the copyright owner whose creation is broadcast by the New York City station and imported, by cable, to viewers in Oswego, has not been deprived of the chance to earn money by showing his production in Oswego. For the advertising revenues to be derived from showing the program to the cable subscribers in Oswego have already been derived by the New York ('ity station. And, as a result, the New York City station will pay the copyright owner more than if the station were unable to reach the Oswego audience.

To allow the copyright holder to be compensated again-this time directly by the Oswego cable system-would be giving him the windfall of an undeserved second payment. This is a windfall that neither the cable television industry nor the 15% of the American households which are cable television subscribers can afford.

Thank you.

(Whereupon, at 2:55 p.m., the subcommittee adjourned, to reconvene at 9:30 a.m., Thursday, June 12, 1975.)

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