Weekly television digest (Jan-Dec 1963)

10— TELEVISION DIGEST MABCH 18. 1963 GE HIT ON CO-OP ADS: GE lost first round in its tussle with FTC over co-op ad practices initiated in 1959 (Vol, 2:24 p9). FTC hearing examiner Andrew C. Goodhope ruled last week that GE unlawfully restricted retailers in fair-trade areas from advertising GE products below specified minimum prices by withholding co-op ad payments from those who did. “Certain customers have, therefore, been discriminated against,” he said, recommending that FTC order GE to cease practice. TVs & radios are not involved. GE’s co-op plan applies only to certain consumer pi’oducts of its Housewares & Commercial Equipment Div. GE’s minimum-price requirement, Goodhope also charged, was “clearly designed & intended to attempt to eliminate lower-priced advertising & consequently constitutes an attempt [by GE] to tamper with the prices of its retailer dealers, which it has no right to do.” GE noted that “heai’ing examiner’s report is only an initial step in this proceeding,” added; “It remains GE’s conviction that there have been no restraints on competition & all customers have been treated without discrimination under the plans. The company expects to appeal this matter to the full Commission.” :1c ♦ * * FTC may adopt new procedure under which suspect firms would avoid investigation if they immediately drop challenged practices. Commissioner A. Everette MacIntyre, in speech last week to National Account Mgrs. Assn., said his pi’oposal could streamline Commission’s workload & free it for speedier handling of cases requiring investigations & hearings. He said other Commissioners have indicated interest in his idea of pre-investigation conferences which, he belives, would “promote more effective voluntary compliance with the law.” Philco’s Consumer Products Div., “reorganized along functional rather than product lines, made important gains in 1962 in manufacturing efficiencies & facility utilization,” Ford Chmn. Henry Ford II & Pres. John Dykstra told stockholders in annual report. They reported sales gains for Philco’s foreign subsidiaries, emphasized that Philco last year conducted “intensive program of market appraisal, internal reorganization & product realignment, all aimed at improving its sales in the highly competitive home appliance & electronic equipment markets.” Buying plans are up, Commerce Dept, reports on basis of Census Bureau midJan. survey of 17,500 representative U.S. households. Survey found that 4.5% of consumers expected to purchase TV sets in first half of 1963. Only decline was reported in intentions to buy radios & phonos costing $100 or more; in this category, 2% expressed plans to buy — down from 2.3% year ago. Purchase of homes was planned in next year by 10% of families, in next 2 years by 20%. Meanwhile, Commerce Dept, reported retail spending reached record high in Feb. Fourth market for 3M-Revere tape cartridge recorder will be Los Angeles. Instrument will be formally introduced at L.A. High Fidelity Show April 2-7. Export & licensing arrangements for U.S. products in Sweden will be explored May 4-June 7 by U.S. Trade Development Mission to Sweden, which will include one businessman experienced in electronics. Commerce Dept, says Sweden is “one of the best markets for U..S. products on a per capita basis in the world.” For information on submitting business proposals to Trade Mission, write Electronics Div., Business & Defense Services Administration, Washington 25, D. C. RCA anticipates record ad spending in 1963’s first half to promote home entertainment products. Intensified program provides TV, radio, magazine and newspaper promotion of color sets and portable TVs, radios, phonos. “With demand for RCA color sets at an all-time high,” noted ad & sales promotion vp J. M. Williams, “we are spending substantially more money on color TV in our print advertising than we did in 1962’s first half.” Muntz TV is suing former principal Earl Muntz, Autostereo Music Inc., and Muntz JIusic Inc. for $200,000 on charges of trademark infringement & unfair competition. Plaintiff charges in Federal Court of Los Angeles suit that defendants are selling “Muntz Autostereo”brandod car stereo tape playback unit & are using in advertising a Napoleonic caricature trademark-protected by Muntz TV. Commented Earl Muntz: “I have a right to use my name, and that caricature I use isn’t of Napoleon — it’s me.” Japanese TV exports to U.S. increased again in Jan., according to Japanese go\'t. figures. TV sets leaving for U.S. during month totaled 18,601, of which 15,261 were tube sets & 3,340 transistor sets (Jan. 1962 total was 2,327, of which 1,415 were tube & 912 transistor). Radios with 3 or more transistors totaled 327,506 (vs. 311,420 year earlier), while tube radios declined to 41,837 from 98,462 in Jan. 1962, and “toy” radios dropped to 89,450 from 244,986. Feb. retail sales rose 7% to record $20,291 billion from Feb. 1962 & 0.2% from 1963’s first month. Commerce Department reported. New level was record for any month. Sales of durable goods rose 8% from Feb. 1962 to nearly $6.5 billion; nondurable goods gained 6% to $13.8 billion. Opening day bargains, including Westar 16-in. TV sets at $59.88 (made by Nippon Electric for Westrex j Alpine) were snapped up by early-bird shoppers March 13 on opening day of S. Klein’s Philadelphia store. Klein L spokesman said 100 sets were included in special offer. Set j normally lists at $99. Among other grand opening bargains [ were 100 power mowers at $19.99 each. r More information on component sales \vill be supplied j to participating manufacturers under expanded EIA mar ] keting services program. Factory sales will be tabulated j for resistors, capacitors, s%vitches, relays, connectors, in | ductors and filters & networks. J Sylvania is producing 2 new series of microwave germanium tunnel diodes for such high frequency applications as oscillators, amplifiers, frequency converters and high speed switches. Prices range from $12 to $110 each in quantities of 1 to 9. Avco has licensed London-based Ultra Electronics | Ltd. to use certain of its communications equipment patents, techniques & developments.