Television digest with electronic reports (Jan-Dec 1954)

COLOR INTRODUCTION-A STUDY IN CONTRASTS: First I9-in. color sets hit the big N.Y. consumer market this week — Motorola with a big advertising splash, CBS-Columbia very quietly. Both were keyed to "Shower of Stars" colorcast on CBS-IV Sept. 30. In black-&-white , Philco made the biggest news by increasing prices on 15 out of 32 models by $10 and $20 (for details, see Topics & Trends). Whole industry watched contrasting color introduction techniques, for their own plans of presentation may hinge on which approach proves more successful. RCA and Admiral both say they will have sets to consumers "by the end of the year," but neither would comment on the method of introduction. Both said inclination now is to be very modest in promotions until mass production can meet mass demand. Westinghouse says it plans "relatively big splash" when its 19-in. color goes before public around Thanksgiving Day. One of first in consumer market with 15-in. in bid for "identification" with color (Vol. 10:11), Westinghouse said it regarded 19-in. as "interim" size, wasn't committed too heavily to it in expectation that 21-in. would be available in considerable quantities at start of year and would make its big promotional push at that time. Spokesman said company's introduction of 19-in. sets won't be piecemeal but will be presented simultaneously in many cities. Motorola's color sets came on crest of full-page ads in daily newspapers, plus trade ads in Retailing Daily. Ads stressed 205-sq.-in. picture and compatibility. Price of $895 was rather played dov/n, though text said "here at last is color TV not for the few, but for you and you and you." Then it listed some of announced upcoming color shows, and the 89 dealers in New York area v/here sets would be available. Distributor Motorola-New York said it was difficult to state the number of sets sold but that it was "substantial". Edward R. Taylor, marketing v.p., now says Motorola will make 20,000 color sets this year, down 5000 from his earlier estimate, with lower figure attributed to delays in getting started. This, company contends, will be sufficient to cover demand' this year. Its upcoming color schedule calls for introductions in Detroit , Philadelphia and Los Angeles week of Oct. 4, Oklahoma City by Oct. 10. It plans to be in all markets with colorcasts by year's end. CBS-Columbia sent out no advance publicity, took no ads for its color presentation. It placed sets with 10 dealers in area and the dealers in turn invited 200 prospective customers to see color in CBS studios. Pres. Seymour Mintz stated that those invited were "red hot prospects" for sales, not merely the curious. It will open up Chicago and Los Angeles markets by Oct. 13 in similar hush-hush manner. Mintz said color isn't a mass market item yet, and there's no point in trying to advertise it as such. When color tubes become available in substantial quantity, he said, CBS-Columbia is prepared to go all-out in promotional push. When tubes will be available for mass production is a moot question, though CBS-Hytron reports steady increase. Pres. Charles F. Stromeyer says that company is now shipping "CBS-Colortron 205" 19-in. tubes in "freight car" lots, sticks to his prediction CBS-Hytron will build 30,000 or more this year. He says company now has an inventory in color tubes for first time, adding that "the most encouraging thing is the improvement in rejection rate — it's much better than we anticipated." He has no plans for 21-in. round metal tube, like RCA's, but expects to turn out rectangular tube eventually — he's not saying when. * * ♦ ♦ Philco's price increases resulted from "higher manufacturing costs, including wage hikes," said v.p. Fred Ogilby. Increases were in middle and upper ends of the line, with leader prices remaining intact. That may v/ell set the pattern for other manufacturers seeking ways of increasing prices (and profits) without lowering sales. 8