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

9 Topics & Trends of TV Trade; Emerson’s bold move to “guarantee” its current sets against any obsolescence by color drew news headlines this week — but it’s still too early to determine how public is taking to it. All sets in Emerson’s 9-model “1952” line are being sold with stipulation that at any time within 2 years of sale they may be returned to dealer and “total purchase price returned as full or partial payment on any color receiver, regardless of make.” Emerson will reimburse dealers for any sets returned. Color refund plan was first announced July 30 in conjunction with John Wanamaker store in New York and Philadelphia’s Stern & Co. chain, but was extended Aug. 1 to all Emerson dealers. President Ben Abrams reported offer has attracted much “favorable attention” and increased store traffic at Wanamaker’s and Stern’s. Offer was designed “to give the business a shot in the arm,” according to Mr. Abrams, who maintains “color talk has hurt TV sales more than any other factor, including Regulation W.” He reaffirmed Emerson’s stand against production of non-compatible color sets, but guessed other manufacturers might turn out as many as 1,000,000 color sets in next 2 years. Trade-in plan is scheduled to run for limited time only — possibly 3 months. Mr. Abrams said at July 31 press conference that company may have to stand loss of more than $1,000,000 because of trade-ins, but “we are persuaded [that] the ultimate results will fully warrant the goodwill and business-building investment.” Operating at a production rate slashed in half by “defense demands,” Mr. Abrams estimated Emerson will produce 125,000 sets rest of this year. Emerson’s offer caught the imagination of Wall Street Journal, which gave it big play as “$20,000,000 gamble.” The Journal didn’t explain its arithmetic. * * * • Chances are excellent that Senate will follow House’s lead in scrapping Administration’s request to hike TVradio excise taxes from 10% to 25% (Vol. 7:6 et seq), in opinion of industry and trade leaders. RTMA chairman Robert C. Sprague and NARDA president Mort Farr were optimistic after testifying before Senate Finance Committee this week. Both made point of TV industry’s present depression, recent upsurge in dealer bankruptcies. Sprague asked Senators to consider removing present 10% tax instead of increasing it, pointed to surveys indicating remaining market for TV consists of families earning less than $5,000, submitted analysis by Boni, Watkins, Mounteer & Co., showing “higher excise tax would unquestionably depress and aggravate sales even further.” For broadcasters, NARTB govt, relations director Ralph W. Hardy told Senators public relies on TV-radio as major source of news and general information; therefore, receivers shouldn’t be taxed any more than newspapers. Bendix Radio’s Leo G. Homey appeared before Committee to urge removal of excise taxes from industrial and communications electronic equipment. Hearings completed, Committee plans to report bill out by Aug. 25. 4: * 4c Canadian RTMA reports 20,070 TVs sold for $11,007,218 during first 6 months of 1951, inventories totaling 11,451 units as of June 30. Windsor area (Detroit) took 41% of 6 months sales, Toronto-Hamilton 35%. June sales were lowest yet, with only 493 units sold for $254,239, compared with 1116 in May (Vol. 7:27). Table models under $400 list totaled 139, over $400 totaled 236. Consoles under $500 totaled 8, over $500 totaled 100. TV-phonos numbered only 10. Toronto-Hamilton area took 38% of June sales, Niagara Peninsula 27%. Windsor area (Detroit), which usually leads others, dropped to 22% of sales. More liberal price ceilings on TV-radio sets and electronic parts and equipment are inevitable a: result of new controls bill signed July 31 by President Truman. To avoid “profit-control” squeeze. Congress specified manufacturers may include in their costs such expenses as increased advertising expenditures, sales costs and general administrative expenses. Under old law, (Vol. 7:9,14,17-18,2122), increased labor and material costs were only major items which could be taken into consideration. OPS is studying law and will issue new regulation soon incorporating new provisions voted by Congress. OPS July 31 revoked General Overriding Regulation 13 and put back into effect the major manufacturing orders which had been held in suspension for a month. These include GPR 22 (which regulates, among other things, home TV-radios and their parts) and GPR 30 (including other electronic equipment and parts). Deadline for filing the various foz'ms and reports required by the orders has been extended to Aug. 13. Most producers who have already filed under the 2 orders will be entitled to adjustments of their ceilings under forthcoming new OPS regulations. % 4: 4: « Westinghouse’s new line consists of 16 TVs, 10 radios, being shown to eastern distributors in New York Aug. 6, in Chicago Aug. 13, Los Angeles Aug. 20. Prices are generally lower than previous models, of which 8 holdovers ar-e still in stock. Line begins with 16-in. black plastic table at $199.95, plus four 17-in. tables: black plastic $229.95, mahogany plastic $239.95, mahogany veneer $259.95, oak $269.95. Mahogany table with 20-in. is $349.95. Consoles are five 17-in. models: mahogany wood open-face at $299.95 & $329.95, oak $349.95, French Provincial full doors & same in fruitwood $399.95. Two 20-in. consoles with full doors are $449.95 & $469.95. Two combinations with AM-FM-phono are mahogany full-door at $499.95, oak $525. Top of line is 24-in. TV-only with paneled half-doors at $675. Radios range from $25 to $230, include company’s first clock radio at $37 and 2 AMFM tables at $60 & $63. Big ad campaign, tying in with Westinghouse football sponsorships (Vol. 7:30), is planned. Stewart-Warner showed 10 TV sets, mostly in present line, and 17 new radios (8 AM table, one AM-FM table, 4 clock models), priced from $20 to $290, to annual sales convention in Chicago Aug. 3. New TV set was 17-in. consolette at $299.95 with unique white frame for picture that is as wide as set itself. Sales mgr. Edward L. Taylor said company was “ready for uhf” with turret tuner already built into all but about 5000 of its earliest models, “ready for color” with plug-in for CBS color and “a CBS color adapter if you want it.” New Hoffman line unveiled at this week’s distributor convention is said to be all-new models, with new price list. Line starts with 14-in. oak table at $199.95, 17-in. mahogany table at $299.95. Consoles are 19-in. at $369.95, 20-in. at $465, and three 17-in. at $299.95, $339.95 & $395. Combinations are 20-in. in maple or mahogany at $595 and 17-in. at $495. New 24-in. console to list for $595 will first be offered on West Coast only. Pocket-sized conservation handbook has been mailed by RCA to all TV service organizations. Illustrated 34-page booklet contains detailed suggestions on saving of installation and maintenance materials resulting from tests conducted by RCA Service Co. Possibly most useful feature is extensive list of alternate parts and tubes which can be substituted when exact replacements aren’t available. No new models before Sept. 1, is report from RCA; in fact, “no new line — simply adding some models.” Company guaranteed present line to Aug. 1, which some distributors extended on own to Sept. 1. Field salesmen meet in Camden Aug. 13.