Industries itself. In 1979, the company moved its headquarters from Crystal Lake, Illinois, to the new planned community of Rancho Bernardo, California, to be closer to the entertainment industry. Meanwhile, KBSC-TV changed its commercial program format to Spanish-language shows in 1980, airing 74 hours a week of commercial shows in Spanish and giving the market a second choice for Spanish-language viewing. Most of its Spanish-language shows, including news from Mexico, were sourced from Mexico's Canal 13. ON TV grew nationally, with Oak and Chartwell developing operations separately, though the two remained partners in the Los Angeles operation. This arrangement, however, came into doubt in March 1981. The two sides disagreed over Perenchio's appointment of William M. Siegel, the chief executive of Chartwell, as the general manager of National Subscription Television—Los Angeles. Oak refused to consent to the appointment and claimed that Chartwell and Perenchio had "surreptitiously" placed Siegel on the payroll; it was reported that Oak had no dispute with Siegel but wanted to affirm its authority as 51 percent owner of the venture. Oak chairman Carter was surprised to learn that Siegel made more money than he did. Further, Perenchio drew Oak's ire when the Chartwell ON TV operation in Detroit ordered new decoder boxes from one of Oak's competitors. Oak and Chartwell settled that September; the suit was dropped, and Oak bought out Chartwell's 49 percent share of National Subscription Television for $55 million. By May 1982, ON TV in southern California had reached its zenith—400,000 subscribers, representing two-thirds of Oak's base of some 600,000 paying customers in its five ON TV markets, not counting Detroit, Cincinnati, or Portland. After the FCC repealed a rule in late 1982 that required television stations offering a subscription service to broadcast at least 20 hours a week of unencrypted programming, KBSC began running ON TV 24 hours a day and displaced its existing Spanish-language daytime programming. However, the STV industry took a national nosedive moving into 1983. A national recession and the increased penetration of multichannel cable television created new and immediate financial headwinds for Oak and ON TV. In March 1984, the company announced that it was being investigated by the Securities and Exchange Commission (SEC), and it posted a loss of $166.1 million for 1983. One of the company's auditors, Arthur Andersen, qualified its statement, fearing that Oak could not fully realize its $134 million investment in subscription television.