Television digest with electronics reports (Jan-Dec 1956)

with Electronics Reports WYATT BUILDING V WASHINGTON 5, D C. • TELEPHONE STERLING 3-1755 Trade Report April 21, 1956 ] RCA CUTS COLOR TURE PRICE, SHARES KNOW-HOW: "A major step in the right direction" appeared to be the comment which epitomized industry's general reaction to RCA's vigorous moves this week to encourage more set makers to get into color faster. In summary, RCA told symposium of licensees in Chicago that, effective May 1, price of 21-in. (255-sq. in.) color picture tube would be reduced from $100 to $85, and that complete blueprints and detailed mass-production information on color production would be made available to them, including furnishing of components. H. Leslie Hoffman, pres, of Hoffman Electronics, bespoke the sentiments of many attending symposium with this comment; "This is one of the major breakthroughs in color. It gives manufacturers the incentive. At the same time, NBC's expanded programming gives the public the incentive. With incentive at both ends, the distributor and dealer will come along." Does this mean mass marketing of under-S500 color sets in June? Consensus of licensees was that while RCA's actions would stimulate downward trend in prices, a S595 price tag in June is more realistic expectation. RCA's own color sets, at |695, $795 & $895, are expected to be reduced in June, probably by $100. Some color price cuts this year, stimulated by RCA's action, were generally foreseen by other set makers. Motorola's Robert W. Galvin indicated his new color sets, to be introduced in June, will be priced in the "upper $500 range." Admiral has already announced plans for a 21-in. color table model in June at $499.95, plus a $100 service contract which Admiral spokesman said will be urged on buyers as "absolutely necessary." Emerson's Ben Abrams said production costs won't justify a $499 price tag, commented; "Even at a $695 price, set makers would be just about breaking even." Raytheon's Henry F. Argent o said; "A $595 price seems much more reasonable than $495, which would take a lot of magic." Westinghouse & Magnavox said only that their color prices would be "competitive." Philco, which has never announced renewal of licensing agreement with RCA and was not represented at RCA meeting, said no price reductions on color are anticipated this year. * * * * RCA pres. Frank Folsom told licensees; "Many of you will recall that in Aug. 1947 we turned over to other manufacturers in the radio industry complete engineering and manufacturing information on the first table model black-&-white TV receiver (630TS). This receiver became the foundation upon which was built today's vast TV market. Now we shall do the same thing with our big-screen color TV receivers. We shall turn over to you RCA's latest color receiver blueprints, our technical knowhow, production details and bills of materials. Our color TV manufacturing facilities are open to your inspection. In our opinion, this action will prove to be as important to color TV as the first table model was to black-&-v/hite TV. "The public wants color TV and, to help meet that demand, NBC is planning a major night-time color program schedule. This will, of course, include the 'spectaculars' and other regularly scheduled shows. With these important developments in both manufacturing and broadcasting, color TV takes a major step forward. It is our hope that you will join us in making this exciting new art available to the American public on the widest possible scale." (Color programming details on p. 16.) Douglas Y. Smith, v.p.-gen. mgr, of tube div. , said that RCA had exceeded its previously announced production goal of 30,000 color tubes a month, stating; "While manufacturing costs have been reduced, performance and reliability have been improved. Accordingly, we are pleased to announce today a reduction in the price of this tube to manufacturers in bulk packing from $100 to $85, effective May 1." * ♦ ♦ * RCA showed licensees 2 new color chassis, one "standard," the other "de luxe." Standard chassis (CTC5) has 27 tubes, 2 germanium diode crystals, 2 low 13