Television digest with electronic reports (Jan-Dec 1956)

Record Details:

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14 nient is properly installed and properly serviced so you have satisfied customers.” “Now you might well ask,” he said, “Who is smoking opium? Well, let me tell you, it isn’t RCA. Gen. Sarnoff and Frank Folsom and their associates didn’t build RCA into a company that last year did over $1 billion worth of business in the domestic market, plus a couple of hundred million with their international company, by smoking opium. They built it into that kind of business by having visions of the future and the guts to make investments ahead of the future to be prepared for the future when it arrived.” He went on to relate plans for colorcasting — NBC’s promised minimum of 80 hours per month; CBS plans (“from a reliable source”) for color TV 5 nights a week plus 5 daytime shows. He described RCA’s line of 10 color models, starting at $495 with step-ups of $50 to $850, told of plans for servicing color sets, disclosed installmentbuying policies instituted by Philadelphia’s biggest TVappliance banker. First Pennsylvania Co. Whereas the big Philadelphia bank first required 25% down on color as against 15% on black-&-white, with 24 months to pay, Joyce said it reduced the color down-payment to 10%, then approved 30 months to pay. “Now what is the significance of that? It’s this: * it * * “Last year there were about 2,000,000 TV consoles sold in the U. S. for more than $300 retail. We did a tremendous job in our territory, and RCA did a tremendous job nationally, on a console which sold for $329.95. Now, using the same down payments across the board with 24 months to pay on a black-&-white and 30 months to pay on color, the monthly payment charge is $14.62 on a black-&-white and $16.15 on a color set — a diiierential of $1.53 a month. “I was taught in school that there were 30 days in a month, and if you divide that into $1.53, it comes down to the fact that for only 54 a day more your customer can have a color TV set . . . It’s going to be a pushover!” Joyce then reported that Commercial Credit Corp., Baltimore, has now approved 36-month terms, with minimum monthly payments of $15, and that First Camden National Bank and other banks in his area are now doing likewise. He also quoted Wm. Kelly, pres, of First Pennsylvania Co., as having indicated his bank will soon allow 36 months. “Why do cold-blooded bankers give 30 to 36 months to pay on color as against 24 months on black-&white?” Joyce concluded. “Believe me, it’s not out of the kindness of their hearts. It’s because a color TV set is a better investment from their standpoint than a black-&-white set.” Color Trends & Briefs: “Our color billings were $288, 000 in July, will run about $190,000 for August, $400,000 for September — and by December should hit at least $500,000 a month. Within a year or so, if we can get deliveries, color TV should represent a $25,000,000 annual business for our company alone.” These unusual disclosures were made by Thomas F. Joyce, pres, of Raym.ond Rosen & Co., Philadelphia area RCA distributor, in departing from text as he spoke before Aug. 18 session of NARDA Institute in Washington. Though he’s probably the most enthusiastic tub-thumper for color TV outside the RCA hierarchy itself, what he had to say created something of a sensation among the dealers & distributors and the sprinkling of TV-radio-appliance manufacturing people present. He revealed also that his territory’s quota of color sets is 15,000 between now and end of year, though normally its factor is 3% of RCA distribution; he did not say he expected to move that many for the year, nor do his own predictions of 1956 color set billings indicate he will — but his statement that color was really “beginning to move” was borne out by one of his top dealers present, Mort Farr, of Upper Darby, Pa., ex-chairman of NARDA board, who arose to say that he had ordered 200 of them for his one store. ^ 4: * The RCA “color line” was laid out, from the distributor-dealer standpoint, probably more clearly than even the parent company’s spokesmen have yet ventured to expound it. There were no ifs, ands or buts in Joyce’s presentation and he certainly held the rapt interest of his audience despite obvious fact that some disagreed. They did sit up, however, when he disclosed how certain big banks have cased installment buying credits (see p. 1). He said: “The coming $5 billion dollar industry in America is color TV,” said Joyce. “You are getting in on the ground floor if you get in now.” He cited RCA estimates of color TV sales: In 1954, 5000; 1955, 20,000; 1956, 300,000, of which 200,000 will be RCA; 1957, 750,000; 1958, 2,250,000; 1959, 4,500,000; 1960, 5,500,000. As of Jan. 1, 1956, he said, the RCA investment in color has amounted to $70,000,000 for research & development; $23,000,000, for manufacturing and plant facilities; $18,000,000, on broadcast facilities; $63,000,000, in production commitments (cabinets, chassis, kinescopes, etc.) ; $6,000,000, on color advertising & promotion for next 18 months alone — for a total of $180,000,000. “And RCA Service Co., over and above this, has invested about $2,250,000 in color test equipment to make sure this equip Network Color Schedules (Aug. 26-Sept. 9, 1956) Aug. 26 — NBC: Zoo Parade, 5-5:30 p.m. Aug. 28 — NBC: Matinee Theatre, 3-4 p.m. Aug. 29 — NBC: Matinee Theatre, 3-4 p.m.; Kraft Television Theatre, 9-10 p.m. Aug. 30 — NBC: Matinee Theatre, 3-4 p.m.; Lux Video Theatre, 10-11 p.m. Aug. 31 — NBC: Matinee Theatre, 3-4 p.m. Sept. 2 — NBC: Zoo Parade, 5-5:30 p.m.; Alcoa Hour, 9-10 p.m. Sept. 3 — NBC: Matinee Theatre, 3-4 p.m. Sept. 4 — NBC: Matinee Theatre, 3-4 p.m. Sept. 5 — NBC: Matinee Theatre, 3-4 p.m.; Kraft Television Theatre, 9-10 p.m. Sept. 6 — NBC: Matinee Theatre, 3-4 p.m.; Lux Video Theatre, 10-11 p.m. Sept. 7 — NBC: Matinee Theatre, 3-4 p.m. Sept. 9 — NBC: Film, “The Magic Box,” 8-9 p.m. ■ Local color reports: In Kansas City, 210 color sets were sold in 6 months to July 31, bringing total to date to 479, says local Klectric Assn. ... In WBTV, Charlotte aioa, 510 color sets wcie counted as of Aug. 10 by WBTV researchers. Mass color set market remains some years off, is still opinion of Dr. Allen B. DuMont. Speaking at Texas Electronics Assn, banquet in Houston Aug. 24, he said: “With present color circuits and tube costs, I don’t know any manufacturer who can market a set for under $500 and get a reasonable profit margin. I doubt that the ideal j color picture tube has yet been developed, and the quality of the black-&-white picture on a color set has been a problem. Some industry leaders see this fall as the time ' for the color breakthrough. I hope they are right, but 1 I’m afraid I’m from Missouri and want to be shown.” j RCA closed-circuit color system costing $180,000 will * be installed at U of Michigan medical school by early 1957, ! for teaching surgical & clinical procedures. Equipment includes live color studio cameras, live 3-V camera, film 3-V chain, single-vidicon monochrome camera, ten 21-in. hometype color sets. In Washington, RCA color system is due to begin operating in Oct. at Walter Reed Hospital, Armed Forces Institute of Pathology and Army Medical Service Graduate Scliool; sy.stem lias grown to include 8 camera ^ chains, 60 receivers. 3