Television digest with electronic reports (Jan-Dec 1954)

Trade Beperl Angnst 21, 1954 f TENSION MOUNTS IN COLOR TUBE COMPETITION: Jockeying for leadership in color tube and set production begins to get rougher, as CBS and NBC prepare to kick off their fall color programs — CBS with 'Toast of the Town' this Sun. Aug. 22, and NBC with its first "spectacular" Sept. 12. CBS appears not at all fazed by plans of others who have announced new tube developments — RCA, DuMont , Fhilco . Management sticks to its prediction that CBSHytron div. will build some 40,000 of the 19-in. tubes this year, maintains it will have no trouble selling them. And Motorola, CBS's major set-making ally other than its own CBS-Columbia, reiterates it intends to make 25,000 sets with the CBS-Hytron tube this year, insists there's market for them at $895 and $995. Then no less a factor than Admiral — which recently dashed cold water on the 19-in. tube because of RCA's plans for 21-in. (Vol. 10:29) — has definitely ordered several hundred 19-in. from CBS-Hytron. It's evident that Admiral's canny pres. Ross Siragusa is leaving no flank uncovered. * * * ♦ ♦ Motorola isn't sitting by, while others nervously await outcome of battle among the tube makers. This week, it reported it's now producing and shipping the 19-in. sets — after having blasted other set makers' statements on color in recent letter to all Motorola distributors. In letter, exec. v.p. Robert W. Galvin laid stress on the following points: (1) "An ultra discriminating" market for tens of thousands of color sets exists, "and for this we are ready." (2) Motorola is familiar with Fhilco tube and circuits, but they have problems which "may be solvable within the next year or two" — and Motorola won't wait. (3) "It's highly improbable" that RCA's 21-in. will be available for anything but "a small handful of sample receivers" the first part of 1955. Galvin wound up with this statement : "Motorola is going to market with a positive attitude backed up with strong, positive promotion and advertising. This is the kind of leadership that a goodly part of the retail trade will follow." Though RCA is holding off on its big guns until Sept. 15, it's known that pressure on Lancaster tube plant is terrific. Illustrative of this is fact that one of RCA's ablest and most experienced technical executives, v.p. and technical director Dr. C.B. Jolliffe, has been right on the "front line" in Lancaster, supervising development and production of the 21-in. tube. LOW PRICES SPARK TRADE'S HIGH GOING RATE: still heavily emphasizing low-end sets at S150-$170, the TV trade continues to click at brisk pace at all levels. Froduction upswing, which started week ended Aug. 6 when 135,135 TVs were turned out, went even further in week ended Aug. 13, with 157,205 produced — highest for any week since last Nov. 6, according to RETMA. It was year's 32nd week and brought production for year to date to about 3,385,000, compared to 4,400,000 in same period of 1953. Radios are also continuing spurt, production totaling 193,148 (71,042 auto) week ended Aug. 13, highest in 2 months, up from 185,475 units in preceding week and 144,706 week before. For 32 weeks, output was 5,615,000 vs. 7,725,000 year ago. TV sales for first 2 weeks of Aug, are estimated to be moving at about same pace as Aug. 1953, when full month's factory sales were 570,987, distributor sales 462,570 and retail sales 430,101. It's regarded very good for midsummer. * * * ♦ Consumers are taking advantage of bargain prices to buy heavily in lower-end market. Reflecting keen competition, RCA this week cut price of its 17-in. ebony metal table model from $160 to $150 and will shortly introduce blonde & maroon 17-in. 10