Television digest with electronic reports (Jan-Dec 1957)

13 Topics & Trends of TV Trade: New round of phono record price cuts on industry-wide basis seems certain, following actions this week of RCA Victor and Columbia in cutting prices of 45rpm records, effective Jan. 7. It’s recalled that RCA Victor set off similar industry-wide price reductions 2 years ago with cuts of up to 80% on 10 & 12-in. LP records (Vol. 11:1). RCA’s “original cast” extended-play albums were reduced from $4.98 to $2.98, while 3 and 4-pocket EP albums were cut from $3.98 to $2.98; 2-pocket albums, $2.98 to $2.49; single pockets, $1.49 to $1.29. Lawrence W. Kanaga, v.p.-gen. mgr. of RCA Victor record div., also said that a special offer in Jan. will enable distributors and dealers to recover any markdowns. that the price adjustments may require them to make on current inventories. He did not spell out details. Columbia matched RCA’s cuts in the single and doublepocket albums, but did not reduce list prices on $4.98 and $3.98 albums. In addition, it cut back dealer discount on EPs to 38%. Kanaga said RCA will spend more than $1,000,000 this year to promote 45rpm records, particularly EPs. He said RCA intends to “saturate every American communication medium with the EP price reduction story.” RCA is also pushing 45s through its home insti'ument div., which is giving heavy emphasis to 45-only phonographs. Purchasers of those phonos will be able to buy 10 Harry Belafonte records, listing at $14.90, for $5. Note: Phono record industry ijs currently riding crest of its biggest boom, with retail sales in 1956 estimated at $265,000,000, or $30,000,000 above 1955. Expected new wave of price cuts could push 1957 sales above $300,000,000, in opinion of some record manufacturers. ^ ^ Hoffman Electronics’ new line, introduced this week at distributor conventions in Los Angeles and Chicago, fulfills the “Something New” that pres. H. L. Hoffman recently stated was needed in industry (Vol. 12:49). Its line of 12 basic black-&-white models utilizes “Dyna-Touch” tuning and “BeamRider” wireless remote control for automatic selection of stations. “BeamRider” consists of a miniature transmitter which can be used up to 25 feet away from set, and a miniature receiver which is plugged into the back of all sets equipped with “Dyna-Touch” tuning. Also inti’oduced were 3 color sets — 21-in. table model at $595, 21-in. open-face console, $695, and 21-in. “lo-boy” console at $775. Full black-&-white line: 14-in. portable, $130; 17-in. table, $160; 21-in. tables, $190 & $230; 21-in. consoles, $240, $280, $350 (2), $370 & $380; 24-in. consoles, $390 & $395. Hoffman also introduced 2 new solarpowered radios at $75 & $150; they have solar battery pack composed of silicon solar cells. In absence of sunlight, an incandescent light can serve to operate the radio. Motorola anticipates 10% increase in 1957 volume over the $220,000,000 sales of 1966, with sights on $400,000,000 in 1960, pres. Robert W. Galvin told distributors convention in Miami Beach this week. He also indicated that Motorola is interested in adding new electronic products, possibly recording and amplification devices, and other electronic components. He said he expected Motorola’s TV sales to increase next year, “although this may be contrary to the general industry trend.” He predicted industry-wide TV sales of 6,800,000 in 1957, slightly down from 1956 levels, with portables accounting for about 2,500,000 of the total. Motorola introduced 11 new TV models, including two 17-in. portables incorporating 110degree wide-angle tube, and 8 new radios. The TV models: 14-in. portables, $120, $140, $150 & $160; two 17-in. j)oi’tables, no pi-ices announced; 21 -in. consolettes, $270 & $290; 21-in. open-face consoles, $250, $270 & $340. Of interest to TV market specialists is Census Bureau’s report on American population and its characteristics as of Jan. 1, 1967: Total population, 169,000,000, up 2,800,000 from Jan. 1, 1956; 100 women to 98 men; 6 out of 10 families own homes; metropolitan populations growing 4 times as fast as other areas, with 96,200,000 living in metropolitan areas as of Jan. 1; 70% of suburbanites are married; 3,500,000 children reached school age of 6 in year ended July 1; another 2,600,000 reached high school age, 2,300,000 reached college age; fastest natural increase — subtracting deaths from births — is in south, which also has heaviest migration rate; children under 5 number 18,700,000; persons 65 and over number 14,400,000. Decline in TV production in 1956 to 7,300,000 (from record 7,756,521 in 1955) was more than matched by automotive industry, whose combined auto-truck production in 1956 of estimated 6,909,000 was 27% below 1955’s record 9,132,335. In fact, according to authoritative Ward’s Automotive Reports, combined auto-truck output in 1956 did not even come up to auto-only production of 7,942,132 in 1955. It all points up anew the curious production parallels between TV and auto industries in last several years; when TV is on increase, so is auto, and vice versa — though last year auto manufacturers experienced far greater slump than TV. Westinghouse claims broad bandwidth in its new TV sets, asst. TV-radio gen. mgr. Gilbert Larson saying they have 22% more width than average of major competitors’ sets, many of which he said were below 3 me. He said no other manufacturer has a complete line with bandwidth of Westinghouse’s, which is “substantially above 3 me.” Other features of the 8 new basic models to be shown at Chicago furniture marts starting Jan. 7 include push-bar power tuning and optional chairside remote control unit. New line comprises 21-in. table models, $180, $210 & $240; 21-in. open-face consoles, $210, $240, $270, $280, $320. Emerson’s new models, introduced this week, feature 14 & 17-in. “Port-O-Rama” TV-radio portables, with jack for phono attachment. Emerson already has an 8% -in. “Port-O-Rama” at $125 — and this week added a 14-in. version at $148, and 17-in. at $158. In addition, Emerson introduced conventional 14-in. portable at $128; 17-in. portable, $144; 21-in. table model, $168; 21-in. consolettes, $188; four 21-in. consoles, all open list. Also introduced were a table and clock radio, each $20; portable radios, $30, $44 & $68. Olympic Radio’s TV sales in 1956 were up 22% from 1955, sales v.p. Morton M. Schwartz attributing increase to concentration on high-end units, including 3-way combinations, and expanded distribution. It’s introducing a new 17-in. portable at $130 at Chicago furniture marts. Sports-minded Motorola added Bob Feller, the ace Cleveland pitcher who recently announced his retirement, to its youth promotion team, joining Otto Gi’aham, the ex-Cleveland Browns quarterback. Both will tour this year on behalf of Motorola products. Paramount Pictures Corp. is negotiating to buy Dot Records, Hollywood, which in 5 years since founding in 1951 by pres. Randolph C. Wood in Gallatin, Tenn. (with capital of $1000), has become a major record manufacturer, selling more than 1,000,000 records a month. DuMont’s 4 new TV sets, to be introduced at Chicago furniture marts starting Jan. 7, comprise 21-in. consolettes at $230 & $270; 21-in. open face console, $260; 24-in. openface console, $400. All have top-front controls. Admiral’s only addition to its TV line will be a 21-in. “lo-boy” cojisole at $300, to be shown at Chicago marts. Hill to repeal excise tax on phonograph records (HR219) was introduced Jan. 3 by Rep. Herlong (D-Fla.).