Weekly television digest (Jan-Dec 1963)

10-TELEVISION DIGEST MAY 13, 1963 RCA'S COLOR— ROSY: RCA put on its biggest financial spectacular in color — glowing color — for stockholders at annual meeting in N.Y.’s Peacock Theater (formerly Studio 8H) last week. Color was dominant feature of meeting, and hue was rosy. Entire meeting was covered by closed-circuit color, with monitors dispersed around main studio, in an overflow studio and at Exhibition Hall across street. Camera work was excellent, even focusing on questioners as they arose. Tenor of reports from RCA’s divisions added to general good feelings of stockholders by the time they opened their box lunches after harmonious meeting. Chmn. David Sarnoff reported first 4 months set new record, predicted new record sales & earnings this year, “given a favorable national economic climate.” Pres. Elmer W. Engstrom, and all divisional chiefs, in their reports, reiterated the optimism. Among highlights of meeting: Home instruments — Group exec, vp W. Walter Watts reported upward trend is continuing in 1963, with color set sales still running 40% ahead of last year and increase in this rate anticipated before year’s end. Color tube shortage, he predicted, will continue through 1963. He said RCA’s share of portable TV market is rising, and its radio sales are up in face of general industry decline. Components — Continued accelerated business this year, to reach all-time dollar high in 1963. Tube Div. first quarter sales set record. Semiconductor situation should improve this year. NBC — Chmn. Robert Sarnoff reported “sales & earnings momentum of 1962 is carrying forward into the present year, with NBC’s first-quarter profits well above last year’s record first quarter; this favorable trend is continuing into the 2nd quarter,” with new all-time high predicted both for quarter and for full year. TV network & TV stations are setting the pace. RCA Service Co. — “This year, for the first time, revenue from installations & service on color TV receivers could surpass revenue on black-&-white sets.” Other reports: Group exec, vp Charles M. Odorizzi predicted a nearly fivefold increase in number of TV stations in U.S. as result of growth of uhf. RCA Victor Records “continued its record-breaking trend for the first quarter of 1963. RCA still expects its data processing operations to cross over into black by end of 1964. Good reports at meeting were taken to heart by investors. Next day (May 8) RCA stock rose 2%. At week’s end it was 66%, year’s high. Gen. Sarnoff was in fine fettle at meeting, fielding questions with wit and good humor — even those which might appear embarrassing on a less auspicious occasion. Example : Grey-haired woman stockholder asked him where was the picture-onwall TV he “promised for your 50th anniversary” in electronics industry. Replied Sarnoff : “My dear lady, I didn’t promise — I asked for it. I hope you’ll have it for your 50th anniversary.” ■ Admiral will move northern California hq, sales office & distribution facilities of its San Francisco Div. to new 32,000-sq.-ft. building at 280 Valley Drive, Crocker Industrial Park, San Francisco, around Aug. 1. Importance of retail salesmen in TV & stereo is emphasized in recent letters to retailers from 2 companies. Motorola Consumer Products Inc. marketing vp S. R. (Ted) Herkes last week decried those who see salesmen as “vanishing Americans,” adding: “No manufacturer . . . no dealer can continue to live with a selling philosophy based on price alone.” He stated that Motorola is now sending more than 5,000 merchandising awards monthly to retail salesmen in its “Step-Up to Leadership” program. Magnavox Pres. Frank Freimann, in recent letter to dealers, condemned those who “follow the path of least resistance” in selling, converting salesmen into “order-takers.” “People want to be sold — honestly,” he said. EIA has reorganized its International Dept., dropping product orientation in favor of 8 functional committees. Four committee chairmen already have been appointed: U.S. govt, affairs, William M. Adams, Sprague Electric; international statistics, L. C. Melas, RCA International; transportation & traffic, Paul E. Romberg, Philco International; Trade Expansion Act, R. Edward Warn, Litton Industries’ Westrex Communications Div. Chairmen will be named shortly for 4 other committees: International investment & manufacturing, international marketing, export financing & insurance, U.S. export regulations. Magnavox will conduct 250 sales training clinics for more than 5,000 dealer salesmen & service clinics for more than 3,000 dealer technicians this year, mktg. coordinator James J. Shallow told 4th annual marketing strategy conference of Sales Executives Club of N.Y. Pres. Frank Freimann noted that Macy’s will sell some $4 million in Magnavox products this year, explained that company’s franchising of Singer Sewing Machine dealers is a plus market because latter attract customers who normally do not shop traditional Magnavox dealers. Magnavox’s approximately 2,000 dealers operate a total of 3,000 outlets. FTC advisory opinion, declaring unlawful small retailer co-op practice that includes prices in pooled ads, was attacked last week by Sens. Mc(?ee (D-Wyo.) & Humphrey (D-Minn.). Resolution by McGee asked that no action be taken on FTC doctrine until June 30, 1964, to allow time for investigation & possible legislation. Humphrey called for White House Committee on Small Business to study over-all effects of anti-trust laws on small business. Color TV & stereo advances have sparked 22% increase in Du Mont sales during first quarter, as compared wth same 1962 period, according to Emerson Radio vp George M. Hakim. He said about 50% of Du Mont sales were in “higher-ticket models,” despite general industr}*^ trend to portables. Du Mont will double its color line in June. Western Electric and Sanders Associates have signed worldwide nonexclusive license agreement under which, in part, latter will use & pay royalties on Western Electric patents for semiconductor & thin film devices. Western Electric will pay royalties to Sanders for use of its patents on flexible printed circuitry & microwave strip transmission line. Agreement extends to AT&T. GE & lUEW will establish 3 joint subcommittees to “identify the specific areas of agreement or disagreement . . . regarding arbitration, contract language & employe benefits” in advance of contract negotiations which begin in Aug. Similar committees will be formed with other GE unions, company said.