Weekly television digest (Jan-Dec 1963)

8— TELEVISION DIGEST JANUABY 28. 1963 • • • • MANDFACnraiNG, DISTRIBUTION, FINANCE U«S« TINYVISION— BY ADMIRAL £ GE? Trade is buzzing about tiny TVs. Most U.S. monxifacturers hove tentatively rejected the concept — as they did the 16-in. last year — but will be ready to enter field if pioneers make a go of it. ^ We reported last week that 2 set makers have firmed up plans for sets smaller than 16-in. (Vol. 3:3 ! p8). GE has made no secret of fact that it's interested in tinyvision market. In all probability, the other manufacturer is Admiral — although company officials say no such introduction is planned at spring showings or earlier, and won't concede they will have such a set at all. Despite some conjecture that GE will soon introduce lO-tn. transistorized battery-operated portable, best guess is that company's first entry into wee TV will be regular 110volt line cord model, with new 11-in. square comer tube reported here last month (Vol. 2:52 p7). Set may be priced competitively with small-screen I Japanese imports; i.e., less than $100. ' Those manufacturers considering tiny-screen sets are doing so in expectation of accelerated trend to i personal viewing and fragmentation of TV audience. These new small sets could be forerunners of whole new tinyvision lines, with step-ups and special-purpose sets, eventually including transistorized battery mod 1 els at top of line. I Industry is sharply divided about merits of tinyvision. RCA group exec, vp W. Walter Watts was * asked whether RCA planned "Sony-type compact set" lost week at meeting of N.Y. Society of Security An ; lysts (see p. 12). "We brought out one several years ago and could find no market for it," he replied. i "Originally we priced it at $139.95, then dropped it to $100 and finally liquidated it at $60. The Sony set at ' $229 isn't selling in any volume. We are going to make very sure there is a market for it before we do it again." i, PRIVATE-LABEL TV BUSINESS BOOMING: Mushrooming demand for private-label TVs has business « booming in the "you-name-it" set industry. Private brands accounted for some 10-12% of total 1962 TV sales, i according to best estimates, and will be even more important factor in 1963. This is a sure bet in view of (1) private-labelers' plans to get into color TV in big way and (2) mounting interest in private brands among new categories of customers. "We are being deluged with inquiries from large and small companies," we were told by WellsGardner Pres. Grant Gardner. "We can't afford to take on all the business that's being offered us." WellsGardner, 100% private label, had record 1962, he told us, and "certainly expects to do as well or better in 1963. We know there's plenty of business around." What has triggered upsurge in private-brand demand? Gardner gives credit to discoimters. "They've cut the price and profits of national TV brands to the point where conventional retailers find it difficult to compete. They're turning to private brands because it's a way to control price and profit." Mimtz TV, which private-labels 10% of its TV output, also notes rise of interest in house brands but credits different reason. "It's the general profit squeeze in national brands that's generating this renewed interest in private labels," we were told by vp Jack Simberg. He also told us "requests to bid are coming in from areas not heretofore in private label." Among them: "Trade association groups with good dealers & strong internal financing." Relatively few companies share private-label pie, but moxmting demand could entice others into field. Wells-Gordner & TraVler Industries, both 100% private brand, rote 1-2 in field. Other participants: Muntz 11