Television digest with AM-FM reports (Jan-Dec 1951)

9 Note ; RTMA auditors failed to report output figures for first week of second quarter at week's end, as customary — so they won't be available until early next week. RTMA members can contact association direct if they're in a hurry. Interesting parallel between TV and automotive unit output is discernible from glance at authoritative Automotive News figures. Both are in same boat nov/ so far as lagging inventories are concerned; both face big second quarter cuts. TV output of 7,465,800 sets last year is matched by 8., 004,242 automotive units (6,663,461 passenger cars, 1,340,781 commercial vehicles). First quarter this year, TV turned out 2,196,016 sets as against 1,605,000 same 1950 quarter (Vol. 7:14). Autos totaled 1,982,075 (1,605,611 passenger cars, 376,464 commercial vehicles) first 1951 quarter vs. 1,647,942 (1,348,312 passenger, 299,630 commercial). NPA PLEDGES ACTION ON REPAIR PARTS: -overdue NPA action to assure replacement parts for TV-radio and other electronic equipment was promised this week by Office of Civilian Requirements. It's still in preliminary stage, however, and will probably be incorporated into Controlled Materials Plan (see Mobilization Reports). Electronic parts distributors met April 9 with NPA and renewed last month's plea that manufacturers be permitted to make and sell at least 150% of the number of parts sold for replacement during first-half 1950 (Vol. 7:10). This general plan has been approved by Office of Civilian Requirements, which is headed by ex-West Coast broadcaster Lewis Allen Weiss (Vol. 7:10). But first NPA order incorporating the principle has yet to be issued. Distributors made other proposals, and OCR spokesmen say some of them are being drafted in form of recommendations to other NPA divisions involved — in the hope they'll finally end up in orders or directives. The distributors proposed: (1) Base period of steel durable goods order M-47 (Vol. 7:10-11,14) — first 6 months of 1950 — be extended to entire year of 1950. because of phenomenal increase in production of TV and other electronic items during last-half 1950. NPA officials say this can't be done, since Defense Production Act provides base period must be "representative period preceding June 24, 1950." (2) Component wholesalers be granted priority to order replacement parts at 150% of base period rate. (3) NPA initiate campaign to salvage obsolete radio sets. (4) All equipment and parts used in maintenance and repair be "simplified," but not to the extent of so-called "victory lines" used during World War II. Distributors' committee will meet with NPA again May 28. FIRST-QUARTER sales and earnings reports of the manufacturers should be good — many better than same 1950 quarter, some perhaps as good as boom fourth quarter— but they’re apt to mislead as to near-term trend of the now-lagging TV-radio industry. Unless sudden buying wave sets in, trade seems to be in for slower tempo during spring and summer months. Even if unit volume holds up as more low-priced sets are produced and sold, dollar volume probably won’t — ^unless defense orders come through faster and larger than now. Yet nobody can doubt TV-radio industry’s long-term prospects. Short of war, good portion of that half of nation’s populace still outside telecasting ranges should begin to get service by latter 1952. Mindless though it has been of trade implications of its dilatory handling of freeze, FCC can’t keep freeze on forever and is now really moving toward ending it (Vol. 7:12 et seq). New stations will have to be built, new-type receivers (in some areas with dual vhf-uhf tuners) will have to be I made and marketed. If factory sales reached $1.7 billion I last year (about 7,500,000 sets) and retail-installation' servicing trade was $3 billion, it’s fair to assume that kind of market is still in store when artificial restraints like freeze, credit and materials limitations, etc., are lifted. There’s also simple fact that “TV saturation” is far from reality in most of the 63 population areas now served by the 107 existing TV stations (Vol. 7:12). On basis of 60-nii. coverage estimates. Radio & Television Retailing calculates Boston area families with TV sets total 65%, Philadelphia 61%, Milwaukee 60%, New York 57%, Los Angeles 57%, Cleveland 56%, Cincinnati 56%, Minneapolis-St. Paul 55%, San Diego 48% — to list only top ones. These are the more “heavily saturated” areas. There’s still good proportion of non-TV homes yet to be supplied and replacements yet to be sold in these and other presently-served areas, let alone the new ones to be opened up. B CBS has guaranteed itself a color set maker in acquiring Hytron’s Air King (see page 2) — if Supreme Court gives it go-ahead. But Tele-tone, too, says it will “dust off” plans for “slave” unit (Vol. 6:45) upon favorable Court action. President S. W. Gross says “we’ll get into production as soon as we can.” He says he’ll also be ready with uhf when demand arises, but doesn’t see anything in it now to lift today’s depressed market. CBS attracted big audience (1200-1400) of servicemen to April 13 demonstration in Washington of 17-in. drum set (Vol. 6:52), followed by long technical discussion by Edward Noll, TV Technicians Lecture Bureau, Indianapolis.