Weekly television digest (Jan-Dec 1960)

VOL. 16: No-. 50 15 I • • • • MANUFACTURING, DISTRIBUTION, FINANCE TV'S DOLLARS-PER-SALE RISES: The decline in TV luiit sales during past few months is only part of the story. What doesn't show up at first glance in statistics is this: Although there have been no general price increases, public is paying more per set than it paid last year. In past few months they haven't been buying as many sets as last year, but they're buying more consoles, more combinations, more big-screen sets — and this year they're continuing & furthering the 3-year trend toward higher unit price per set. Analyzing the month of September, we find average price of TV set sold by factory was $151.41 in 1960, compared with $147.01 in Sept. 1959. This $4.40 difference at the factory would translate to perhaps an $8 differential at retail. There's no question that constant campaign to upgrade TV set purchases is paying off. Despite a 9.4% drop in total retail TV sales from Sept. 1959 to Sept. 1960, the public bought 8.7% more consoles & 15.5% more combinations in Sept. 1960 than in Sept. 1959. In Sept. 1960, retail sales broke down as follows: 52% table models & portables, 43.5% consoles, 4.5% combinations. Just one year earlier, breakdown was 60% table models & portables, 36.5% consoles, 3.5% combinations. Picture-tube size shows similar upgrading — aided sharply by public acceptance of new 19 & 23-in. sizes. In Sept. 1960, consoles sold at retail were divided 53.5% 23-in. & larger, 46.5% 21-in. & smaller, while the division a year earlier had been 19.1% & 80.9%. Among table models. Sept. 1960 saw retail sales divided 59.5% 19-in. & larger, 39.5% 17-in., 1% smaller sizes. In Sept. 1959, 34.8% had been 19-in. & larger, 62.5% 17-in., 2.7% smaller sizes. These figures for a typical fall 1960 month show that while there are fewer unit sales (and total dollar sales have also declined), there are more dollars — and presumably more profits — per sale. Note: With official release of ElA production-sales figures for October — showing TV sales down about 13% from Oct. 1959 — it's a good guess that total 1960 TV retail sales will come to just about 5,785,000. This is a shade higher than last year's 5,749,000 — but distributor sales & production will be lower than last year. For 10-month TV-radio production <S sales tables, see p. 17. CORNING'S ALL-OUT BONDED-TUBE DRIVE: Picture-tube safety-glass issue is shaping up as one of hottest intra-industry battles of 1961. Quietly confident of victory — but not in the least complacent— is world's biggest TV-tube bulb maker. Corning Glass Works, whose laminated-glass process is being challenged from several new directions (Vol. 16:48 pl4). Neither dealers nor public realize all the advantages. Corning has found, of the Corning-type tube (to which a wrap-around implosion plate is bonded, requiring no external safety glass). Recent survey made for Corning by Psychological Corp. showed that only 54% of dealers were aware of laminated tube's advantages and fewer used it as selling point. As to TV set owners, only 15% had any awareness at all of terms "bonded shield" or "laminated tube." All-out TV promotion campaign — "Operation Snowball" — to which Corning will contribute about $500,000, with kickoff next month at Chicago winter market, will attempt to correct this situation. In cooperation with manufacturers, distributors & dealers of sets using laminated tubes, it will be aimed at promoting TV itself — with emphasis on what Corning has re-christened the "Eye-Saver Tube" and calls "the greatest advance in TV-viewing enjoyment in the past 10 years." Campaign will be elaborate, will use all media.