Radio annual (1938)

Sales — A very marked improvement in sales of radio receiving equipment occurred during 1936, and local merchants state that sales thus far in 1937 indicate a continuation of this situation. One factor which unquestionably favored increase in sales during 1936, particularly as affecting the sale of American equipment, was the duty reduction, 50 percent of the rate formerly in effect, which became effective on June 15 as a result of the Trade Agreement between the United States and Guatemala. Sources of Supply — Practically all radio equipment on the Guatemalan market comes from the United States. There is a small amount of Dutch and German participation. Patents — There are no patents in force in Guatemala which in any way interfere with the sale of American radio equipment. Tariff and Trade Restrictions — Radio apparatus is assessed in the Guatemalan Tariff in the Sixth Division. Under the Guatemala-United States Trade Agreement, which became effective on June 15, 1936, the duty applicable to radio receiving sets (tariff item 491-4-6-3) imported from the United States and from other "most-favorednations" was reduced to 0.25 Quetzals per gross kilo. In addition to the United States, countries enjoying "most-favored-nation" treatment include Czechoslovakia, Italy, Sweden, Netherlands and Germany. There is no exchange restriction in force. The United States is the Principal supplier of all types of radio equipment. In general the American product is regarded as more advanced than the European, and is preferred. Short Wave — Reception of short-wave broadcasts from foreign stations depends on their power, but the more powerful stations from all parts of the world are heard in Guatemala. As previously indicated, reception from the European stations is generally more satisfactory than from the United States, due principally to the greater use of the directional antennae by these stations. Programs — Programs for the most part include musical numbers, generally supplied by local bands or "marimba" orchestras and transcriptions are also used. Arrangements have been made for the rebroadcasting of programs of one of the chains in the United States. In addition to the fact that European programs are received more clearly than those from the United States, the fact that_ these stations cater particularly to Latin American listeners, with several daily broadcasts in Spanish, favors their reception. Advertising — Although there is a provision for the acceptance of advertising on the station of the Ministry of Fomento and rates have been established, no advertising has as yet been accepted. Likewise, none of the other stations operated by the Guatemalan Government have accepted arvertising. The station operated by the newspaper "El Liberal Progresista", is, therefore, the only broadcasting station in Guatemala regularly accepting advertising. Transcriptions — Only the ordinary commercial transcriptions have been used thus far in Guatemala. Phonograph records for radio broadcasting use are usually purchased locally, but in a few cases transcriptions supplied by advertisers have been utilized. Sets in use— 8,000-12,000. Stations — 7. General — American participation in the German radio market is obviated by the patent situation, which has had that effect since before the inception of broadcasting and its development of radio trade as an important industry. Sets in Use — On Jan. 1, 1937, there were about 8,200,000 to 8,300,000 receiving sets in Germany. The majority of these were small, a large number being of the "Volksempfanger" type of 3 tubes. An indefinite percentage represents two or more sets each. The number of sets operated without licenses is not estimated. Germany, perhaps more so than many other countries, still presents a very large market for radio receiving sets. Only about 48 percent of the households in Germany possess a radio receiver, as compared with 78 percent in the United States, and 65 percent in England. The superhet radio set continues to gain in popularity among German buyers, and 52 percent of the radio sets sold in the first 5 months of the current calendar year were of this design. Highprice sets are more in demand now in Germany than heretofore, while about 25 percent of all the radio receivers sold in this country at present are intended both for direct and alternating current. Sources of Supply — There is no market in Germany for imported radio equipment. Patent exchange agreements reserve Germany for German manufacturers. Some years ago some radio parts, principally loudspeakers, were brought into the country in spite of the patent exchange agreement, but now Germany has strict foreign ex change regulations which make it impossible for an American exporter to get his money, even if he could sell here. However, as a result of a patent dispute, an agreement was reached between Telefunken — the principal patent holder in Germany — and Philips of Holland, whereby the latter was licensed to do business in Germany. By the same agreement, Philips allows a certain amount of German participation in the Dutch market, including East and West Indian possessions. The number of German radio manufacturers is limited by decree of the Minister of Economics to 28. Patents — German radio patents are controlled by Telefunken, which company also has the rights in several other European countries. The company's position in Germany appears to be unassailable. Tariffs and Restrictions — Germany's trade regulations with European countries are generally better than with the United States, because of trade agreements which exist. Although some business can be done between German and American firms, trading by barter with European countries is simpler. Television— -Germany was one of the first, and for a long time one of the foremost countries in the world to bring television to its people. For several years there has been one central sender and one relief station handling programs three times a week and a number of other sending stations are said to be planned. As a matter of fact their 946