Radio age research, manufacturing, communications, broadcasting, television (1941)

Outlook for the Radio Industry Television, FM Broadcasting, Industrial Electronics on Verge of Broad Advances, RCA President Tells Radio Manufacturers — He Says Economic Readjustment Now Underway Will Result in a Stronger, Healthier Industry POINTING to unlimited oppor- tunities for expansion of the radio industry, Brigadier General David Sarnoff, President of the Radio Corpoi-ation of America, in an address at the annual convention of the Radio Manufacturers Asso- ciation in Chicago on June 12, said that the future of the industry is to be found not only in standard broadcasting, but also in television, FM (frequency modulation), in- dustrial electronics and foreign trade. Television alone with its vast possibilities for home, theater and industrial use represents opportu- nities, he said, that will enable the radio industry to achieve new rec- ords on an unending road of prog- ress. He added that he foresees the ultimate fusion of sound broadcast- ing with television, and that the 36,000,000 homes now equipped with radio will find new pleasures in sightseeing and attending events by television. Opportunities Are Challenging Calling attention to the fact that since the first of the year econo- mists have warned of a business decline. General Sarnoff said: "A readjustment already is un- derway. Certainly we need to adapt ourselves to its requirements by a reasonable appraisal of current conditions, by constant efforts to effect economies in costs of produc- tion and selling and by improving our products. This readjustment of viewpoint and operations will result in a stronger and healthier indus- try. "Radio, by its very nature, is in the vanguard of science. The pos- sibilities that lie ahead in televi- sion, radar, electronics, and other products of radio technology pre- sent opportunities that are chal- lenging and real. As long as our industry continues to foster re- search and create new products and services for the public, we need not fear for its future. BRIG. GENERAL DAVID SARNOFF "We stand on the firm founda- tion of a great industry, built by many years of pioneering, produc- tion, and service to the public. We began as pioneers in a wilderness of economics. We have moved up and down with changing business cycles, weathered worldwide politi- cal storms, and not only survived, but emerged st''onger than before. And we are still pioneering. "Radio manufacturers and mer-' chants are in a far better position today than they were at the begin- ning of broadcasting. We have learned in the hard school of ex- perience the practical lessons of production and merchandising. Three New Markets "Today, the radio industry is on the threshold of three great new markets—FM, television, and in- dustrial electronics—while the old- er markets for standard broadcast receivers and combination instru- ments are still fertile. For instance, radio-phonographs and phonograph records are in greater demand to- day than ever before." Technical and economic condi- tions which retarded the growth of FM during the war and in the early post-war period now having been removed, the outlook appears bright for this branch of the industry, General Sarnoff said, in urging vi'hole-hearted cooperation of all who can contribute to its progress. "The measure of its success will be determined largely by the qual- ity and variety of the programs transmitted over FM stations," he said. "I believe that the fullest benefits to the public and the larger opportunities for sales will come only when programs now broadcast by standard stations and networks are permitted to be sent simulta- neously over FM stations. Let us hope that present-day restrictions, which forbid this, may soon be removed." Television, General Sarnoff as- serted, is a service designed not only for the home, but also is des- tined to have great implications for the theater, the motion picture studio and the entertainment film, and last, but not least, in the mani- fold processes of industrial life. Television Opportunities Television, therefore, he pointed out, offers the radio industry a combination of opportunities: first, to make transmitting and receiving sets: second, to equip theaters; and, third, to manufacture for indus- trial applications. He declared that there is no need to wait for televi- sion on a national scale to receive the benefits it already affords to city-wide, or local communities. He described the small town as "a natural television stage". "The belief that a local television station cannot be erected and oper- ated without a large investment is wrong," he continued. "Television programming can be started by local stations, in a small way, with a minimum of facilities, and ex- panded as receiving sets and com- mercial sponsors increase. In the meantime, until networks are avail- able, films of live shows and news- [RADIO AGE 3]