dissenting.
I dissent. “Manufacturing”, as noted by the majority, consists of the application of labor or skill to raw materials such that the materials undergo a “substantial transformation in form, qualities and adaptability in use . . . .” and are changed thereby into a new and different article. Commonwealth v. Deitch, 449 Pa. 88, 93, 295 A.2d 834, 837 (1972). However, the majority has misapprehended the nature of appellants’ broadcasting activities and has, therefore, incorrectly concluded that appellants are not manufacturers.
The Chancellor made the following findings:
“The extensive record in this case provides ample support for the proposition that plaintiffs are engaged in manufacturing as that term has been construed by courts. In the broadcast of a TV program, optical information is changed into an electrical signal which is modified in many ways by the application of extremely complex tech*536nology. That electrical signal is eventually encoded and placed on the broadcaster’s carrier and sent out to be received by a receiving set, decoded and put into such a state as to be viewed by the ultimate consumer. That which occurs in the television studio before the cameras may be viewed only by those who are in actual visual contact within the television studio, and nothing is available for the benefit of the consuming public until the highly technical process of transforming optical information into an electrical signal and back has been completed by the application of skill and labor, which results in a new, different and useful product. The same thing may be said of the radio broadcasting activities of plaintiffs. There, accoustical energy is changed to an electrical signal and made into a useful product.
What has been here said concerning the manufacturing character of the operations of plaintiffs is true whether the material is produced originally in the broadcasting studio or comes to it by network feed. ... In each case, however, a manufacturing process occurs. Network feeds must be picked up when transmitted, monitored, taped and prepared for rebroadcast at the particular time that they are to be carried on the air. Each such network feed goes through the process of transformation which occurs when live programing occurs. No matter which form of news or entertainment or feature or sports is being broadcast, the chancellor is convinced that a manufacturing process occurs. One need only read the testimony of the witnesses to establish the highly technical nature of the transformation which must occur between the origination of the material and its consumption by the viewing or listening consumer even if his technical education is insufficient to establish a full understanding of the scientific nuances of the process.” 74 D. & C.2d 156, 162, 165-66 (1976) (emphasis added).
My review of the record confirms that, no matter what the source of the broadcast (i. e., whether live studio broad*537casts, videotape, film or network feed), a substantial transformation of materials does occur. The record establishes that light or sound energy from the various sources are transformed by the use of labor, skill and complex machinery into electricity in the form of electrical signals, which are then amplified, shaped, modulated and further transformed through various processes into electromagnetic waves. These electromagnetic waves are then impressed upon, and combined with, a “carrier wave” so that they can be transmitted in a new and useful form, namely television or radio waves. A substantial metamorphosis occurs in both the form and quality of the materials used in the broadcasting operation — indeed, the transformation must occur before the materials can be of any use to the viewer or listener. Under the Deitch definition, therefore, appellants’ broadcasting activities are “manufacturing” for purposes of the Local Tax Enabling Act.
Further, a proper application of the appropriate standard of appellate review compels the conclusion that appellants are manufacturers. Since the Local Tax Enabling Act imposes a limitation on the authority of the City to tax “manufacturing”, any doubts concerning the status of appellants’ activity must be resolved in favor of appellants. Fischer v. Pittsburgh, 383 Pa. 138, 142, 118 A.2d 157, 159 (1955). Apparently, the majority has no doubts. In my opinion, however, the evidence produced in the case is more than sufficient to raise doubt regarding appellants’ status as a manufacturer.1 Fischer requires us to resolve that doubt by finding appellants’ activities to be manufacturing. Therefore, the City is without authority to tax appellants’ revenues.
Finally, it is important to remember that the limitation placed by the legislature on the City’s authority to tax is intended to encourage the growth of manufacturing in this *538Commonwealth. The courts, in their development of standards for determining whether or not a particular enterprise is engaged in manufacturing, should be concerned with achieving that legislative objective. To that end, the standards must be flexible and the courts must be willing to adapt the standards to comport with rapid technological and scientific progress. As research and development in countless areas produces techniques and processes that may have been hitherto unheard of, we must not rigidly bind ourselves to outmoded concepts. That we cannot physically grasp or feel the product of the broadcaster’s manufacturing process does not mean manufacturing has not taken place. As the “Star Trek” era is ushered into our lives, this Court must be prepared to keep its perspectives progressive and its definitions flexible, or else this Commonwealth will fail to acquire modern, technological manufacturing operations.
MANDERINO, J., joins in this dissenting opinion.. This opinion was also shared by the Chancellor and by Judges Rogers and Crumlish dissenting in the Commonwealth Court’s decision.