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

Trade Beport September 1, 1951 DEMAND UP, STOCKS DOWN, OUTPUT LOW: Cut-price TV sets are moving — from factories to distributors, at least, and at an accelerating pace to dealers and the public. September buying, stimulated by big promotions breaking right after Labor Day, should tell whether there’s real justification for trade confidence that new prices, better programs, easier credit terms and a generally prosperous economy will bring about normal equilibrium between supply and demand. Best news since inventory accumulations began to get dangerously high in early spring came in RTMA's weekly statistical report issued Friday, showing that factory TV inventories had fallen to 666,696 as of Aug. 24 — down 88,000-plus from preceding week (Vol. 7:34). Though August trend had been slightly downward (768,766 first week to 765,916 second, 754,854 third), this was really first sizeable drop since pileups began in February. Indicating that manufacturers are holding down production, while getting rid of inventory, was output figure for Aug. 24 week — only 55,596 units (1801 private label). This is slightly over the 52,748 of week before (Vol. 7:34), but hardly enough to betoken any trend yet. Week's figure compares with 188,000 TVs turned out during comparable week last year. And it certainly doesn't indicate the set makers are pushing the output of their new lines — not yet, anyhow. Radios totaled 222,263 (103,885 private label) week of Aug. 24, not much change from level of preceding 3 weeks (Vol. 7:32-34). Inventories of radios went up to 418,304 from 368,280 during preceding week (Vol. 7:34). Week's radios were 112,747 home sets, 29,909 portables, 79,607 auto. First dealer inventory report came from Dun & Bradstreet this week, showed 900,000 to 1,150,000 new TVs in hands of dealers as of Aug. 1 — 350,000 to 450,000 of them table models, 550,000-700,000 other types. Inventories of home radios were estimated between 1 , 400 , OOO-I , 700 , 000 , plus 375,000-450,000 new battery portables. There was cold comfort in these figures, albeit they were month old and nice movement of sets has been discernible since mid-August. Dun & Bradstreet estimated, however, that Aug. 1 figures were about 15% under July. There's no authentic figure on distributor holdings as late as Aug. 1, most recent being RTMA's end-of-J\me estimate of 633,077. So it's difficult to reconcile weekly manufacturer inventory of Aug. 24 with dealer estimate of Aug. 1 with wholesaler holdings back to June 29. Suffice to say there are still plenty of sets I But trend during August was salutary at all levels, if key industry folk can be believed. Certainly, the way some distributors and dealers are already buying is sign to the good. All trade reports say price-cut models are moving very well. RCA claims orders for just about all its factory stocks of the 9 models it price-cut by $30 to $115 just 2 weeks ago (Vol. 7:33), setting off current wave of reductions. This despite fact advertising hasn't even started yet in most places, isn't due to break generally until Sept. 6. At least 100,000 sets are believed involved in RCA's factory unloading, to say nothing of distributor-dealer holdings. "By the end of September," said spokesman, "we'll be out of all our old sets." He said this after report from Pittsburgh that the sets, advertised there ahead of other places, were selling like the proverbial hotcakes — and that distributor there was clamoring for more. Bruno-New York, biggest RCA distributor, stated every set offered has been spoken for by its dealers, reported good dealer sales already. Bruno-New York also said dealers have ordered all availabilities of RCA's new line (Vol. 7:34) and added that it "looks like sellout" through end of this year. Similar reports came from RCA distributors in Newark, Philadelphia, Detroit, Chicago. Gambling on quick disposal of overstock, RCA begins advertising new line of 8