Weekly television digest (Jan-Dec 1963)

NEW SERIES VOL. 3, No. 10 TELEVISION DIGEST— 9 White's franchise arrangements set resale prices for wholesale distributors, restricted their territories, forbade them to sell certain customers (govt, agencies, large commercial buyers) without written permission. Justice Clark, in minority opinion, described these arrangements as "one of the most brazen violations of the Sherman Act that I have experienced in a quarter of a century." Justice Douglas, writing majority opinion, noted that White matter was Supreme Court's first case involving vertical (between manufacturers and their distributors & dealers) territorial restrictions. "We know too little of the actual impact of that restriction & the one respecting customers to reach a conclusion on the bare bones of the documentary evidence before us," he wrote. "Such territorial limitations may be too dangerous to sanction or they may be allowable protections against aggressive competitors or the only practicable means a small company has for breaking into or staying in business." In returning case for court trial. Justice Douglas pointed out that market allocations by competitors "are naked restraints of trade with no purpose except stifling of competition." Similar market allocations between manufacturer and its dealers & distributors "may or may not have that purpose or effect," he emphasized, adding : "We don't know enough of the economic & business stuff out of which these arrangements emerge to be certain." COLOR MANUFACTURING PLANS: Preparing for Dec. 31 cutoff of color sets from RCA (see p. 7), most set makers hope to have their color production lines operating full blast by this summer. Here’s rundown of 19 TV manufacturers and their color production plans & status : Admiral — Began producing own color sets last Sept., discontinued buying complete sets at year’s end; has started color ad & promotion campaign. Andrea — Started owm color production last summer. Color Electronics Corp. — Now producing 120 sets weekly, according to Pres. Irving Kane, “and gearing up to do 500 a week.” Brooklyn-based firm sells mainly to dept, stores under private labels & “Color by Kane” brand name. Emerson — Beginning own production of Emerson & Du Mont color sets; will be in full production in June or July. GE — Has been making ovm color sets since it resumed production in Spring 1961. Magnavox — Has completed pre-production run at Greeneville, Tenn. plant, expects to be in full production by end of this month. Motorola — Will resume color set production this spring or summer, possibly using 21-in. round tube in most models, and 23-in. rectangular tube it is developing with National Video in high-end Drexel furniture sets. .Muntz — Ha.s announced it will be making color sets “late this year on a limited basis” (Vol. 3:4 p9). Olympic — Will be producing own color sets before summer plant vacation shutdown. Packard Bell — Has been making own color sets for more than 8 years. Philco — Begins ovm manufacture in late Spring at Philadelphia plant. Sears Roebuck — Warwick Mfg. Co., controlled by Sears, has been producing color sets since Aug. 1961, has just completed new plant & high-speed production line for color; “would like to make more than we’re making, but we can’t get the tubes.” Pacific Mercury, also controlled by Sears, has announced no plans to produce color. Sylvania — Will be making own sets “about Aug.” Meanwhile, Sylvania, which has been buying color sets from Packard Bell, switches this month to RCA-built sets; will announce 3 new models soon (for total of G). Symphonic — No plans to enter color market. Transvision Electronics — oflfering build-it-yourself color TV cha.ssis kits at promotion price of $356 (normally $419); factory-assembled chassis at $526 (normally $619). TraVler — Will have own set for private-label trade “some time this year” (Vol. 3:4 p9). Wells-Gardner— Will be assembling own color sets by end of May. Color set customers include Montgomery Ward, W. T. Grant, Western Auto. Westinghouse — No cm-rent plans to produce own color sets. Tentatively plans to negotiate for another supplier to replace RCA. Zenith — Has been making own color sets since summer 1961; never bought from anyone else. * No sign of TV price hike was evident last week as Motorola introduced new version of its Tartan 19, the set which brought leader portable prices do%vn to $140 range last year. New Tartan, priced at $139.88 like its predecessor, has handle, monopole antenna, front speaker, premiumrated tubes, polarized plug. Step-up model carries $149.95 suggested list. Also introduced w'as open-list 23-in. lowboy console with built-in magazine shelf. National sales mgr. C. P. (Chuck) Lloyd predicted U.S. console TV business will represent about 2 million units at $500 million this year. He said Motorola’s 1963 unit sales should be “highest in the last decade if not in the history of the company.” “Was $79.95 — Now $95.” This could be caption on ad for Symphonic’s imported 16-in. TV in Spiegel’s newly issued sale book. Set which almost caused international incident has been repriced, as promised by Spiegel (Vol. 3:2 pll). At same time, step-up model was increased from $99.95 to $109. New prices include stand. Spiegel reported orders beyond e.xpectations; it ran out of Symphonic sets and had to substitute other makes. 3M-Revere tape cartridge recorder will be sold beginning March 11 in 14 San Francisco-Oakland retail outlets.