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

Phonograph Records Make Strong Comeback in 1931 By L. W. Kanaga Manager, Commercial Sales and Merchandise Division. RCA Victor Record Dcpurtinen! Th -HE phonograpii record business—which so.ired to all-time heights in 1947 only to meet a declining market the following year—has made a strong comeback. There was a confusing fog for a while created by the introduction of the new-speed records, but it has cleared away, leaving the industry healthier than evet before in its history. According to a consensus of the best available industry estimates, dollar sales, which were S23.1 million in 1948 and fell to S202 million in 1949, rose to S284 million in 1951. It is true that record unit sales have declined, but the amount of actual music sold has increased—the difference being that more music is contained on the new-speed records. A symphony which, on the old 78-rpm speed, would occupy an album of four or five records today comes complete on a single 33'/3-rpm record—usually at lower cost, too. So the rise in dollar volume means that people definitely are buying more music. It must be explained that the lack of a central data- gathering organization or a standard method of reporting makes it difficult to determine trends in the record indus- try. Most figures now available (from musicians' union fees, excise taxes, etc.) have to be adjusted and coordi- nated and often must be projected before they begin to make sense. hidi/stiy Selling More M//sic But one fact is plain: the industry is selling more and more music and is bringing in more and more dollars. Chief factors entering into the firm position of the phonograph record business are: 1. The "speed" war and its attendant confusion— which kept many from buying records—is now a dead issue, most companies agree. The major record makers now produce in all three speeds. The 78-rpm records are dying out and the new speeds are contributing the largest share of the total volume. Both of the new speeds have their champions among consumers. While it is true that 45-rpin records have the edge in popular and light clas- sical works, and ^liVi's sell better in the heavier selec- tions, the record buyer's choice depends mostly upon which system he owns. 2. Revivals are beginning to play an important part Phonograph record sales made strong come-back in 1951. in both the classical and popular market. Among these, RCA Victor's "Treasury of Immortal Performances" series is notable. Caruso's records alone sold more than a half-million last year. This may be the strongest indi- cation that the industry has come of age—for with its earlier products having a permanent demand from the older generation, there is a constant self-renewing market in collectors' items. 3. A basic sales factor is the number of phonograph players in homes. In 1941 there were only 3.3 million players in home use. During the following decade this sky-rocketed to 21.97 million—a solid market foundation. TV has increased Record Sales 4. Television has not cut into record sales as was widely feared. In fact, TV has increased sales, according to recent RCA Victor surveys and sales figures. They indicate sales are best in television areas and that TV set owners themselves buy more records than non-owners. There are several theories as to why tliis is so. One is that a TV set in the house keeps people home more often, and while they're home their chance of playing records is increased. Another reason might be the fact that, like live musical performances, television "sells" people on music and makes the recording artists more familiar to them. 5. The present state of low inventories (compared to 1948 and 1949) is another market booster. It allows greater facility in meeting fast-changing market dem.inds. 6. The growing popularity of classical music is having its effect, too. Before the war the ratio between pop and classical record sales was about 80 to 20. Now it is estimated at approximately 70 to 30. This is gen- (Continued on page 30) 26 RADIO AGE