Broadcasting Telecasting (Jan-Mar 1962)

EQUIPMENT & ENGINEERING A rosy report on color tv, stereo fm NARDA HEARS SET MAKERS' OPTIMISTIC PREDICTIONS FOR 1962 Mr. Saxon Color television prospects brightened last week in the eyes of RCA, color's biggest investor and promoter. RCA's hopes are pinned on two facets of color set expansion: a rise in retailing of its sets and in the increased use of its color tv picture tubes. Raymond W. Saxon, marketing vice president of RCA Sales Corp., said color has become "the favorite rich uncle" of tv retailers, and will account for more and more of their profits as time goes on. He told the annual convention of the National Appliance Radio-Tv Dealers Assn. in Chicago last Tuesday that RCA's distributorto-dealer color set sales in the three weeks before Christmas were 101% higher than in the same period of 1960, and that total 1961 sales were up 5 1 % from 1960. The last 8 quarter of 1961, he said, will be known as "the turning point in color television." The sales gains shown by color tv in 1961 "show excellent promise of continuing right through 1962," Mr. Saxon said. Portables Up ■ He warned the dealers that more and more of their profit on black-and-white sets will be coming from low-margin items, especially portables. During the next five years, he predicted, tv set sales will average close to six million receivers a year, but "of these total sales, lower-priced merchandise with traditionally lower profit margins will continue to increase its share of the total black-and-white market." He ventured that low-margin portables will represent 80% of the blackand-white market in 1966, as compared to 58% now. The dealer's profit outlook, he said, will be much brighter if he moves "more aggressively" into color television, where there are "builtin opportunities for dealers who are salesmen first, and not simply checkout counters." During the last quarter of 1961, Mr. Saxon said, some distributors reported their color-set volume was three times what it was in the same period of 1960. By the end of 1961, the color inventories of both dealers and distributors were exhausted in most areas, he reported. Boost In Demand ■ RCA said it plans a $1.5 million expansion of its current $10 million color tv picture tube plant to meet an anticipated 250% boost in industry demand this year. The plant is at Lancaster, Pa. Color tube production there is at a record rate, D. Y. Smith, vice president and general manager, RCA Electron Tub Div. reports. He adds that production has doubled in the last year alone. It's Mr. Smith's contention that RCA wants to be prepared to supply a quantity of "high quality" color picture tubes should every major tv manufacturer begin marketing a color set. The expanded facilities are expected to be operating by the second half of this year. Mr. Smith's projection is of a $200 million volume status for color tv this year, or twice the volume of two years ago. From 6 to 10 Million ■ Edward R. Taylor, executive vice president of the Consumer Products Div. of Motorola Inc., told the radiotv dealers that the annual sales total of 6 million tv sets could be boosted as high as 10 million if dealers would Stop "gimmick" merchandising and concentrate o n building the secondset market. He observed that there are more two-car American families today than two-tv set families, not to mention the multiple radio set market that developed only in the past few years. A bright market for setreo fm sets was predicted by J. B. Anger, Zenith Sales Corp., if dealers will cooperate more with local fm stations in mutually beneficial promotions. He said live demonstration is the most effective sales device for stereo. Mr. Anger cited sponsor support afforded by major manufacturers of fm stereo programs in many markets. The Zenith executive predicted that by April 1 there will be 194 fm stations in the country broadcasting stereo fm programs. By June 1, the total would be 225 stations on stereo, and by the end of the year 261 stations, he said. At the present there are 56 fm stations stereocasting, according to survey statistics compiled by Zenith. No Premiums ■ S. R. Herkes of Motorola went on the record strongly against the "I. D. tape plans" now mushrooming among food store operators. By the "instant dividend" arrange Mr. Taylor ment, major appliances, including radiotv sets, are offered as discount premiums to be partially paid for by food store cash register receipts. He asserted that such plans tend to destroy consumer confidence in the quality of the appliance product offered, and to undermine the long-range market potential of the appliance dealers involved. Sam Jenkins, Majestic International Sales Corp., predicted that the next mass volume consumer product in the electronics field would be the tape recorder, emphasizing that the tape recorder for home use is just at its sales threshold. The tape explosion in business and industry clearly indicates the big consumer market potential, he said. Radio-tv and appliance dealers should experience a sales spurt of eight to ten % during 1962, according to Richard Snyder, NARDA economist. Continental to build 1 megawatt transmitter A $1,250,000 contract to manufacture and install a 1 -megawatt standard broadcast radio transmitter for the United Arab Republic was announced last week by Continental Electronics Mfg. Co., subsidiary of Ling-TemcoVought Inc., Dallas. Thomas B. Moseley, Continental sales director, said the transmitter would be delivered to Alexandria, Egypt, within 12 months and would be operative within 18 months. The contract closely follows award to Continental of two multi-million dollar contracts for vlf military radio transmitters by the L-T-V subsidiary. One is a $10.5 million contract to design and construct a NATO fleet communications radio station in England; the other is to design for the Pacific fleet communications an installation similar to the $70 million Atlantic fleet radio in Cutler, Me., which Continental completed earlier this year. Technical topics... STEP system ■ A Chrono-log STEP (Sequential Television Equipment Programmer) system has been installed at WTVR (TV) Richmond, Va. STEP automatically switches video and audio during station breaks. The system was purchased from the Chrono-log Corp., Broomall, Pa. New antenna ■ The Crush Craft Co., Manchester, N. H., presents its new vhf-uhf antenna for fixed station use. Clover leaf in design, the antenna is 64 BROADCASTING, January 15, 1962