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Only 3 of the 21 UHF stations could alone make the top 100 market ranking. Most of the others wouldn't be within hailing distance.

In 4 of the 17 markets, the UHF stations predated the VHF stations in the market. However, none today surpass the VHF circulation.

In these four markets TV set owners had to have all-channel sets or UHF converters on their sets in order to receive any television at all. In all 17 markets, set owners needed all-channel sets or converters to be able to see the 3 national networks.

In summary, 17 of the 21 UHF stations in these markets have been on the air since 1953-and their average share of the market audience is only 40 percent. There are no comparable studies that can be made with respect to independent UHF station development in intermixed markets. ARB data are available for only 5 of 12 such markets. Two of the stations-with very small ARB rankingsappeal to specialized audiences. One station has been on the air for a year, and another for 2 years-in Detroit and Chicago respectively.

However, the one other market-Milwaukee, Wis.deserves some attention. The independent UHF, competing in an otherwise VHF market-number 23 in ARB ranking has been on the air for nearly 7 years. Yet, its ARB ranking is only 19.3 percent of the total market ARB circulation.

The experience of the network-affiliated UHF television stations in intermixed UHF-VHF markets, and the experience of the Milwaukee independent UHF station, points to the major obstacle to UHF development: the limiting factor of the restricted distance covered by a UHF broadcast signal-unless a station can get network affiliation, and even this makes for marginal operations in some

areas.

Certainly, if even UHF network-affiliated stations in major market areas historically served by UHF television can't compete in terms of audience with VHF stations, then the independent UHF station is going to have a much less share of the audience.

The only way an independent UHF television station is going to receive a fair share of the public's attention in the market it serves, is to give it access to the market *** to allow it to compete for a just portion of that market. The distance limiting nature of the UHF signal can't do the job alone. But, given an opportunity to be received on CATV systems within the top 100 markets, the prospective independent UHF stations have a chance to go on and stay on the air. What are the odds for UHF survival in a CATV-developed market? Could a UHF operate successfully with a CATV system colocated in the same community? As mentioned earlier, there are now or soon-to-be 109 operating UHF commercial stations, representing 70 television station markets.

The 36 markets within the top 100 have already been examined here. As to the remaining 34 markets, these markets represent 34 separate cities and adjacent areas served by the stations within these single cities.

In 16 of these 34 cities there are colocated a CATV system and one or more television stations. In other words, in 47 percent of the principal cities in the 34 markets with UHF stations which are outside of the top 100 markets, a CATV system and one or more TV stations coexist side by side. In 9 of these 16 city markets the CATV system was in operation before the UHF station went on the air.

CATV can hardly be called an adverse factor in UHF development in these markets.

And what about the future for UHF in markets outside the top 100?

There are today construction permits outstanding for UHF television stations in 14 markets below the top 100. In 9 of these markets there is already an operating CATV system in the city of assignment-9 out of 14 communities-64 percent.

Additionally, there are applications pending for UHF assignments in 22 other communities not within the top 100 markets. In 11 of these communities there is already an operating CATV system, 11 of 22-50 percent.

Of the 100 UHF television stations that have gone off the air, 62-62 percent— were located in the top 100 markets. Six were in all-UHF markets. Others were in intermixed markets.

Most certainly something other than CATV in these markets caused those stations to cease operations. Whatever the reasons-and CATV was not one

they couldn't make a go of it.

In fact, two tried and failed in the market offering the best chance for success: the Scranton-Wilkes-Barre market, a historically all-UHF market, ranked No. 70 by the American Research Bureau. One stayed on for 2 years; the other held on for 5 years before merging with one of the network-affiliated stations.

And this all-UHF market has a greater circulation than 165 other television station markets in the United States, and the individual station's audiences are considerably higher than many other stations in much higher ranked markets. Regardless of the evidence submitted here, should the rule be applied, there are presented below data to illustrate the enormous complexities with which the Commission will be faced, the burdens that will be placed not only upon the CATV operator but the broadcasters and the already overburdened FCC staff as well, the waste of private moneys and Government funds, and the denial to the public of their right to access to a variety of television programs for their cultural and entertainment needs.

According to records on file at NCTA, there are about 460 of the 1,600 currently operating CATV systems within one or more grade A contours of television stations in the top 100 markets. There are 119 of 282 systems now under construction which also fall within these contours.

In addition, of 716 other communities which have granted CATV permits, approximately 500 are within the FCC-defined top 100 market contours."

And, finally, of 1,500 communities wherein CATV applications are pending before local governments, we estimate that 80 percent-or 1,200-are within the grade A contours of the top 100 market television stations. Using 1965 CATV activity as a guide, we can expect that 600 or more of these 1,200 communities will grant permits within the current year.

Considering only those systems under construction or which have been authorized by local governments to begin construction, there are at this moment at least 619 parties which must seek FČC approval before they begin to serve potential subscribers.

Add to these cases the 600 additional cases that will insure this year because of communities which will grant CATV permits before the year is out, and you now have a total of 1,219 separate cases that will come before the FCC this year.

And this total does not include the 460 operating systems, many of which are converting from low band-up to five channels of service to high band systems, offering up to 12 channels. If, with their added capacity, they seek to bring in new additional so-called distant signals they, too, must seek approval of the Commission. And some of these systems, now bringing in distant signals or proposing to add distant signals, are also desirous of geographically extending their present systems. In such situations, any interested party can petition the FCC to call a halt to such territorial expansion. These, too, would turn into hearing cases. Consider, too, that wherever there is a CATV system in operation-approximately 1,600 localities or where CATV systems are under construction-282 localities or where permits have been granted-716 communities-that broadcast stations may also request more protection than offered by the rules, and that CATV operators may seek waivers of the rules.

It is significant also to consider that already in 75 of the top 100 markets and in 111 of the 145 principal cities in those markets-wherein the television stations are located-there is currently some sort of CATV activity.

There are CATV systems in operation in 17 of these cities; systems are under construction in 4 others. Twenty communities have already granted permits. Thus in 41 of the 145 cities the public is receiving CATV service or a system has been authorized to come into being. The public in these communities have been told they will get CATV service. Many thousands have already expressed a desire to become subscribers.

And in 70 other communities CATV applications are pending before city governments. Through newspaper reports, the public in these communities are becoming aware of potential CATV service; certainly many are expectantly looking forward to the service.

For a more graphic understanding of the figures referred to immediately above, there are appended to this study maps of six States showing the vast extent of the geographical coverage of grade A contours of the top 100 market stations which serve the States in whole or in part:

(1) The map of the State of Pennsylvania (fig. 16), on which there is superimposed the grade A television contours of top 100 market TV stations which serve the State in whole or in part. These contours were taken from the 1965 edition of Television Factbook, a recognized television industry sourcebook. The contours, therefore, are not precise, but certainly more than adequate for the purpose here. These grade A contours consume approximately 70 percent of the total land area of Pennsylvania. They embrace every major center of population. This State ranks No. 3 in terms of population, with 11,300,000 inhabitants, according to 1960 census figures.

All communities within these contours could conceivably become involved in hearing cases before the FCC.

Television markets are not cut-and-dried entities separate from each other. Grade A contours of stations of one market frequently overlap grade A contours of stations from another market, as illustrated by the light-shaded areas between the contours etched in by the broken lines. The number superimposed on the light-shaded areas indicates the number of markets at that location which have overlapping grade A contours. The dark-shaded areas define those portions of

the State which lie beyond grade A contours of top 100 market stations. indications apply for all the maps to follow.

These (2) Illinois (fig. 17): Grade A contours from television stations within the top 100 markets extend over 50 percent of the land area. They cover practically every major center of population. Illinois ranks No. 4 in population, with 10,100,000 people within its borders.

One market in Illinois-the Champaign-Decatur-Springfield market, including the city of Danville-extends more than 150 miles east to west. One of the principal cities, Champaign, is well beyond the grade B contour of one station in the market; and although the Danville station is included in the market, it is beyond the B contours of three of the five stations in the market. The Springfield station is also beyond the contours of two of the stations.

Here is a paradox, wherein no CATV within the grade A signals of the Springfield station, the Danville station, and the Champaign stations would be permitted to offer service until it obtained FCC approval. Yet the only way all of these market areas could receive all the stations in the market would be if CATV's were operating within the total market area.

There are two other top 100 markets wherein similar situations exist.

In fact, in 14 of the top 100 markets, there are areas served by the grade A signal of one station but which are beyond the B grade signal of one or more of the stations in the market.

Yet, under the FCC's carriage rules, CATV systems located in these areas would not be obliged to carry all the market signals, inasmuch as these locations would be beyond the B contours.

The only way all portions of these markets could be served by all stations in the market would be through CATV system service.

(3) North Carolina (fig. 18): No. 12 in population, with 4,500,000 inhabitants. About 60 percent of the land area is within the confines of grade A contours of TV stations in the top 100 markets, and practically every sizable population center.

(4) New York (fig. 19): No. 1 in population. Within the grade A contours of top 100 market television stations is approximately 56 percent of the land area, and every major center of population.

(5) Massachusetts (fig. 20): For all practical purposes, the entire State (99 percent of the land area) is within grade A contours of TV stations in the top 100 markets. This applies also to the neighboring States of Rhode Island and Connecticut, in which 99 percent of the land area is within grade A contours of top 100 market TV stations. Massachusetts is ranked No. 9 in terms of population, with 5,100,000 residents.

(6) The State of New Hampshire (fig. 21), which, except for one small isolated area, lies completely within grade A contours of TV stations located in the top 100 TV markets.

Finally, one further area of comment as regards the effect of CATV on potential UHF growth:

In 1964 the National Association of Broadcasters retained an economist-Dr. Franklin M. Fisher of the Massachusetts Institute of Technology-to undertake a study of the economic impact of CATV on television stations. This was an extensive study, reported widely as costing in excess of $50,000.

In his findings, Dr. Fisher concluded that if a new television station came into being in an area already served off the air by four television stations, the new station would not experience any drop in audience or loss of revenue from CATV service in its coverage area even if the CATV system did not carry the fifth TV

station.

There are 61 of the top 100 markets in which today 4 or more TV signals are available to television homes within the best ranked viewing areas in the market-i.e., those areas where the ARB measurement is 50 percent or more of television homes receiving the local station or stations.

On that basis alone, 61 of the top 100 markets should be exempt from the Commission's rule.

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