Television digest with electronic reports (Jan-Dec 1959)

VOL. 15: No. 25 19 NEW TV SETS HIT MARK AT MART: Good 2nd-half upturn in TV set business, with emphasis on more profitable items — this is summary of comments by tenants & visitors in Merchandise Mart's llth-floor TV-appliance row as summer market opened in Chicago last week. There were plenty of eye-openers at the traditionally sparsely-attended June market. Perhaps 2 biggest conversation pieces were Philco's Safari battery portable and new 23-in. sets shown by Admiral & Sylvania. In RCA's area, attendants were kept busy demonstrating Hideaway TV set ( which folds into coffee table) and Programmer (on which 12 hours viewing can be set up in advance). Transistorized Safari sets (at $250 plus $5.25 battery) got heavy handling and were subject of extremely divergent views, chiefly centering on whether they'd sell or not. Philco had no fear on this score. Noting excellent reception by distributors, consumer products gen. sales mgr. Gibson B. Kennedy told us: "We can sell more than we want to sell. Our production in the next year will be on the order of 30-40,000 — not 100,000 or anything like that." The 23-in. tube TV sets, displayed by both Admiral & Sylvania alongside 21 -in. models, drew admiring comments for their good looks & clear picture. Both companies went out of their way to answer competitive attacks on new tube (Vol. 15:24). Admiral TV sales mgr. Ross D. Siragusa Jr. said dealer orders for Admiral TVs at Chicago & Miami Beach conventions were highest in company's history, and "more than one-third of the orders have been for the new 23-in. wide-angle models." He added pointedly: "Quality control inspections indicate they are even better than the 21 -in tube." As for Admiral's $40 step-up from 21 to 23-in. sets, he said: "Dealers like the greater profit margin available for an investment of only a few extra dollars." Sylvania Home Electronics pres. Robert L. Shaw predicted to us that 75% of TV set sales will be in 23-in. category by end of 1961 model year. He pointed out that Sylvania — which no longer has any 21 -in. sets — has priced its 23-in. models exactly same as last year's comparable 21-in. units. (For additional comments by Shaw, see p. 21.) Latest to join 23-in. ranks was Hoffman, which showed its "most comprehensive line ever" to distributors at Las Vegas last week. Of 10 basic models, 5 v/ere 23-in. (Hoffman calls it "Pan-O-Vision"), 3 were 21-in. and 2 were 17-in. portables. Featured in Hoffman line this year is "family home theater center" concept of compact matching TV & stereo consoles designed to be placed side by side. Hoffman 23-in. sets are offered in consoles only and run $50 higher than 21 -in sets (which, however, use different chassis). Industry's confidence at all levels was most articulately expressed by RCA consumer products v.p.gen. mgr. J. S. Beldon at Mart press conference. He noted big shift in emphasis "from price to quality, dependability <& innovation," Predicting "a solid 2nd half in TV," he cited these indicators : Inventories in one of best positions in history (Jan. 23% below 1958 at retail level, Feb. 16% below, March 14% below, April 7% below); higher average price per set (8% above 1957 last year); retail TV sales up; few liquidations so far this year. Best indicator of all, perhaps, is excellent economic climate. And at week's end. Govt, announced individual incomes rose to all-time high in May — 7% above last year. For further coverage of TV business conditions & the summer market, see p. 21. TV-RADIO PRODUCTION: statistics for the week ended June 12 (23rd week of 1959): June 5-12 Preceding wk. 1958 wk. '59 cumulative ’58 cumulative TV 128,049 119,089 76,029 2,456,832 1,941,676 Total radio 299,599 276,604 162,575 6,252,752 4,173,711 auto radio 134,167 131,156 51,698 2,525,395 1,323,260 Scheduled strike against RCA by 1600 technical workers in 4 Camden-area plants was averted last week after company & union negotiators hammered out acceptable terms in a 22-hour bargaining session. Members of Local 241, American Federation of Technical Engineers (AFL-CIO) accepted the RCA offer to extend their current contract for 2 more years with 4% general wage increases now & next June. The current contract expires June, 1960, and the negotiations w'ere based on a wage reopener in the pact for technical workers in RCA’s Camden, Moorestown & Cherry Hill, N.J., and Croyden, Pa. plants. Canadian TV sales to dealers for April 1959 totaled 27,612 units vs. 24,558 for April 1958. The 1959 year-todate comparison shows 116,786 units vs. 121,871 for Jan.Api'il 1958. The Canadian sales follow the U.S. curve — up on April-to-April reckoning but down for first 4 months, 1959 vs. 1958. Eastern Air Lines is using TV to help its pilots land & take-off without leaving the ground. The Dalto Corp. device, for use with flight simulators, combines closedcircuit TV & a moving belt imprinted with runway patterns to give pilots a realistic picture of ground action.