Radio broadcast .. (1922-30)

WHAT HAPPENED By EDGAR H. FELIX MERCHANDISING 'NLIKE every other industry of equal magnitude, radio cannot report attaining any outstanding success during 1929, either through unusual and aggressive merchandising methods or the exploitation of a new engineering principle or invention, the reorganiza- tion of a major unit by consolidation or financial expansion, or the impelling influence of genius in executive management. Nor can the radio industry chronicle a new or difficult merchandising situation faced, met, or over- come, a colossal merger, or a great failure. The large producers have maintained their relative positions but greatly increased their manufacturing facilities. Only one new name of consequence appears, Radio-Victor. It arrived there entirely by conventional methods, an advertising cam- paign of superlatives and the exploitation of a technical mys- tery word for dealers to conjure with. Without the accumu- lated good will behind the name Victor, it is doubtful whether the sales-pjomotion plan would have attracted any great attention. New Developments? The industry cannot boast of any departures from the conventional console. In previous years, a leader has stood forth whose product was slavishly copied by the entire industry. This year, the industry is thrown into con- fusion because there is no outstanding success to copy. Where is the clarion call to sales around which a cheering public shall rally? Remote control? Au- tomatic tuning? Condenser speakers? None of these have excited the public. Screen-Grid Radio: If we analyze the dominant sales point for the year 1929 — screen-grid radio — it is easy to determine why it failed to bring an enthusias- tic response. Screen grid is merely accepted; it has not made obsolete previous production as did the ap- peals of other seasons, such as a.c. operation, electro- dynamic loud speakers, power output tubes, and single-control radio sets. The outstanding capability of the screen-grid tube is its potentially greater amplification. The consumer expected tremendously greater sensitivity or else the previously ac- cepted standard of sensitivity with less tubes and at much lower cost. But the gain in sensitivity has been almost imper- ceptible because noise level limitations make it a disadvantage rather than an advantage. Nor have substantially cheaper sets using less tubes appeared. Instead, the customer must pay just as much as before and use just as many tubes, more ex- pensive tubes at that. Price cuts: The failure of the industry to confer any substantial benefit through technical progress or reduced prices has resulted in a failure to absorb the greatly increased production capacity of the leaders in the industry. Faced with overproduction, the industry has wisely adopted a widespread series of price cuts, led by Atwater Kent, Majestic, R. C. A., Kellogg, and Colonial. Some financial writers attributed these price cuts to fear of reduced luxury purchases as a result of the stock market debacle but this conclusion is entirely erroneous. The price cuts were decided upon before the big break by failure of the industry to enlarge its service to the public. A trend toward lower prices is bound to broaden the radio market. As radio reaches into lower and larger market levels, economy of maintenance becomes increasingly important. This may force the production of sets of greater efficiency to sell at $50 and $60, approximating the performance of sets now selling for $125. Such sets may use but a single stage of screen-grid, radio-frequency amplification and a single output tube. Only with such sets available will the radio industry sell more units than the automotive industry. Novelty appeal: In the attempt to find a new appeal with which to sweep the market, many expedients were tried. Most were obvious clap-trap which have as much appeal as an automatic wiper for the bathroom mirror. The public has not found turning a dial to a desired setting, the correctness of which is easily checked by ear, such a trying operation that a mechanism of adjustable The Radio Year Just Closed Was Notable Not so Much for any Large Accomplishments Either in Engineering or in Sales as for Steady Progress in Many Small Ways. There Were Mistakes, Advances, and Shortcom- ings. But the Year Bubbled with Action. These Articles Weigh the Twelvemonth Interestingly. On this Page Edgar H. Felix Considers Conditions from the Merchandis- ing Viewpoint and on the Facing Page Keith Henney Reviews the Engineering Progress of the Past Year. buttons, locking clamps, and flashing lights is any- thing to excite its enthus- iasm. The public has re- cognized so-called auto- matic tuning of 1929 as the invention of despairing sales managers. Remote-Control Tuning: This has possibilities, but the entire conception of radio installation must be modified before it means anything to the public. Dealers report that the public estimate of remote control is that it is a $300 device enabling particularly lazy persons to press buttons at the end of a six-foot cord rather than to reach for the tuning knob. We are only at the beginning of this development. It will be a different story when remote control is intelligently merchandised. An enterprising manufacturer will have vision enough to market a complete radio installation: four to six remote-control points spread conveniently throughout the home—in living room, dining room, kitchen, and master bedroom—a compact metal chassis to be installed in cellar (Concluded on page 162) 130 • JANUARY 1930 •