Firm May Offer Free Films : ‘The End’ in Sight for Cable Dispute?

Manhattan Beach officials gave the city’s cable television service some static when the company increased rates in March without giving 30 days’ notice, as required in its contract.

So to make up for the short notice, the company is likely to give 14,000 subscribers in Manhattan Beach and Hermosa Beach a month’s worth of free movies, ranging from “White Knights” to “Reform School Girls.”

The company, M. L. Media, raised the price of basic, 12-channel service to $12.95 a month from $9.92. The company contends that the 30-day notification provision is illegal under federal law, said Dick Waterman, vice president and general manager of M. L. Media. But the company and Manhattan Beach have reached a tentative agreement that will give subscribers in the two cities a month of free Cinemax movies beginning Sept. 21.

Cinemax, which normally costs $11.50 a month, will be on Channel 12 for the free, monthlong period only, Waterman said. Among other selections to be aired during that period will be “Shanghai Surprise,” “Max Headroom,” “Back to School,” “To Live and Die in L. A.” and “Murphy’s Romance.”

The 30 or so people who now subscribe to Cinemax, which has been offered in the two beach cities only since July 1, will not receive the month of free service, Waterman said, because they got a $1-a-month introduction rate in July.

Waterman said that M. L. Media also tentatively agreed to pay part of the city’s legal fees in the dispute and to provide more extensive coverage of the general plan hearings being held by the City Council.

The company also will voluntarily comply with the 30-day notification clause if rates are raised in the future, Waterman said.

Tom Parker, Manhattan Beach’s assistant administrative services director, said the city is satisfied with the tentative agreement. Although subscribers in both cities have been complaining more frequently about their cable service since M. L. Media took over the operation from Storer Cable in January, Parker said he is confident that the company is working on a long-term plan to improve service.