Television digest with AM-FM reports (Jan-Dec 1950)

OUTPUT HEAVY BUT TURNOVER SLOW: TV receiver advertising bustin' out all over — and more of same to come — currently reflects unseasonal slump in TV retail trade. Though improving a bit this week, business is still reported "only fair." Pessimism is general. Retailing Daily summing up; (1) That business today shows no signs of approaching pace of last Xmas. (2) That retailers fear overloading, particularly with higher-price sets. (3) That talk of higher prices for sets next year is paradoxical in view of fact so many dealers are loaded with big higher-priced combinations and current demand is largely for cheaper table models. (4) That distributors fear some of their dealers will begin dumping, unloading to pay bills. Most aren't financially able to hold out too long. * * * * These dark views are offset by fact that telecast programs are enjoying healthy popularity, making for continued (even if slowed down) demand from nonTV homes ; that second sets in homes are becoming more and more popular (many old ones being kept rather than traded in when new one is bought) ; that new models with 20 & 24-in. tubes are "getting a good ride" from carriage trade; that promotion is being stepped up by manufacturers who, according to New York Times, intend to keep 1951 advertising budgets up despite inevitable decreases in next year's production. Inclination is to lump TV-radio with major appliances, and fact is that for this year such combined sales will run considerably ahead of 1949. But, says Times, that's because of "accrued advantage" prior to Nov. 1. Newspaper reports Dec. 14: "For the first 10 days of December. TV sales are 30% behind the like period last year, store executives reported. Major appliances are down 15 to 20% and combined volume has dropped 20 to 25%.. . "Prior to Nov. 1, buyers reported that monthly gains of 200 to 500% in TV receiver sales were the rule." (Which may really mean the stores were being "spoiled" for the day when things might not be so good.) Times writer continues; "Regulation W is blamed for the debacle in appliance and TV set sales which began Nov. 1 and which shows no signs of lessening despite intensive holiday promotion campaigns. Tight credit terms, merchants said, have prevented more sales than the color TV controversy, the imposition of a 10% manufacturers' excise tax on TV sets or any other factor." * * * * What's ahead post-Christmas? Nobody can really answer that — not even the Washington authorities, whose materials, wage and price controls will inevitably determine flow of civilian goods during emergency. New models will attract some buyers, no doubt, and it looks now like the up-to-$350 items will largely dominate, particularly 14 & 17-in. receivers ; former have shown surprising gains lately. At factories, the sets are still coming out in huge quantities. First December week (ending, for statistical purposes, Dec. 2) ran 198,031 TVs, 342,534 radios , somewhat ahead of November weekly average (Vol. 6:49). Some distributors are being offered special deals to accept receivers, and in turn are offering special deals to retailers, in order to move stock. Deals are mostly special allowances, including more advertising-promotion funds. But next year's probable shortages are causing many distributors to tread cautiously, hang onto stock they can afford to hold and think they will have no trouble moving a few months hence. Fact is that new "1951 models" will generally be so little different from those now being shown, hardly different at all in chassis, that stockpiled receivers need not lose vogue during 1951 days of reduced supply. 10