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

8 Topics & Trends of TV Trade: ge s Df. w. r. g. Baker, who plays it by slide-rule, leans heavily on researchers for market data, knows the Washington score better than most manufacturers, says in year-end statement that “public demand for TV receivers in 1952 will be substantially the same as that which existed in 1951.” As for radios, he thinks materials restrictions will reduce their 1952 sales volume to 6,000,000, down 27% from the 8,200,000 home & portable units expected to be sold in 1951. “It is true,” Dr. Baker’s statement says, “that the [1951] sales of TV receivers in some of the large and older TV markets such as Boston, New York, Philadelphia, Washington, Chicago and Los Angeles were substantially less than in 1950, and that the trend may extend through 1952. We believe, however, that consumer demand in these older markets in ’52 should hold up to the 1951 level as a result of obsolescence of small-size picture receivers, elimination of the confusion in the minds of the buying public concerning color TV, increased sale in the fringe areas due to the more sensitive type of receiver now available and the possibilities of increased transmitter power which may be effective for at least a portion of 1952. “Officials of the NPA have indicated that the metals which will be made available to the TV industry in 1952 will allow the manufacture of 3,500,000 to 4,000,000 TV receivers. The industry estimates about 4,300,000. These quantities compare with approximately 7,500,000 in 1950 and 5,300,000 estimated for 1951. “Estimates of industry production and retail sales for the last 2 months of 1951 indicate, with expected seasonal increased buying for Christmas, that only normal inventories of all makes of TV receivers will be on hand at the end of 1951 at manufacturing, distributor and dealer levels.” GE has stopped production of 17-in. sets to concentrate on expanding 20-in. line, executive v.p. Roy W. Johnson told New York press conference this week. He said 20-in. sets are now on allocation, but admitted “selling 17in. receivers at present is a problem.” He added that production of 17-in. probably won’t be resumed until May. At same conference, GE president Ralph Cordiner predicted all GE consumer goods — with possible exception of TV — will be on allocation by May. And he made this rather surprising forecast: GE hopes to produce in 1952 three-quarters of the appliances it made this year, despite shortages. He said substitution and conservation of materials will account for high output; total would be only 50% of 1951 “without use of these alternate materials.” He said GE’s fourth-quarter production of consumer goods is 40% below levels of year ago; without conservation it would be 60% off. Some 20-25% of company’s total billings are currently for defense, and defense business will reach 30-35% next year and “level off there,” said Mr. Cordiner. :{« * * Trade-practice rules for TV-radio industry (Vol. 7:39) took another step foi’ward this week when All-Industry Committee on Trade Practice Rules met in Washington, approved most of rules it will recommend to Federal Trade Commission. Next is final committee session about Jan. 17, then third and final FTC public hearings, probably in February. Attending meeting: Louis B. Calamaras, National Electronic Distributors Assn., chairman; Glen McDaniel & Ray Donaldson, RTMA; Mort F. Farr, National Appliance & Radio Dealers Assn.; Edwin A. Dempsey, National TV Dealers Assn.; James R. Oberly, Admiral; Fred Walker, dealer in Alexandria and Arlington, Va.; Douglas Day & Robert E. McLaughlin, DuMont; Clifford J. Hunt, Stromberg-Carlson; Ray Saxon & Will Osterling, RCA; Max Balcom & Jack Hai-vey, Sylvania; Henry Weaver, Philco. Admiral-Norge deal is “99% off,” Norge president George P. F. Smith is said to be telling Norge distributors. Reports have it he’s informing them: (1) Disclosure of negotiations by Admiral to buy Norge Div. from Borg-Wamer (Vol. 7:48) was unpopular with Norge personnel and distributors who want to see Norge continue as autonomous organization. (2) Admiral and Norge drifted apart over “details,” and it’s doubtful whether they’ll get together again. (3) Borg-Warner has been negotiating with other “blue-chip TV names, including RCA, Sylvania, Motorola.” (4) Price of Norge was $15,000,000, to include about $6,000,000 worth of Norge’s finished or convertible inventory. (5) Group of independent investors headed by Smith & Sampson, Chicago Norge distributor, is seeking to buy Norge, with Norge president Smith’s blessing. Efforts to reach principals for statements were unavailing. TV-radio distributors accepting chairmanships of RTMA Distributor TV Sports Committees are: Stanley Glassei’, president. Sea Coast Appliance Distributors, Inc., Miami; John G. Gaines, John G. Gaines & Co., Inc., Kansas City; Allen S. Lasky, v.p., Mayflower Sales Co., St. Louis; Emanuel Zerega, president, Zerega Distributing Co., Seattle. Committees form phase of 12-point program by RTMA Sports Broadcasting Committee, headed by RCA’s J. B. Elliott, aimed at boosting public attendance at 1952 sports events (Vol. 7:47). TV “$1 sales” hearing by Federal Trade Commission on charge against Electrical Center, Washington retailer (Vol. 7:45), was canceled this week pending “negotiated settlement” between firm and FTC, according to FTC. Dealer was accused of falsely stating that any purchase of TV, radio or appliance at regular price entitled customer to buy another article “of same kind and value” for $1. 4t * * Merchandising Notes: “If all installment buying ceased and consumer spending was suddenly placed on a cash basis, the national economy would probably stagger into a complete collapse,” said RCA Victor distribution v.p. Robert A. Seidel, speaking Dec. 19 before Columbia U seminar on consumer-credit management; theme was that mass production means mass sales, which are impossible without extensive consumer credit . . . Admiral introducing new 17-in. TV-radio-phono (37-M) as mid-winter promotional item, to list at $450 in walnut & mahogany . . . Stromberg-Carlson offering 2 new 24-in. consoles, full dooi’s — “Newcastle,” $725, “Cathay,” $795, including tax . . . Westinghouse buying out Danforth Co., its Pittsburgh distributor, to be operated as own distribution agency. Trade Miscellany: Freed Radio hearing under bankruptcy laws (Vol. 7:10) now set for Jan. 10, when firm will file proposed new operations plan . . . Raytheon leases one-story, 50,000-sq. ft. building in Waltham, where 400 more workers will be employed starting in May . . . Contract for community TV antenna system in Hancock, Md., has been awarded Electric & Telephone Construction Co., Philadelphia . . . Tel-O-Tube Corp. of America, CR tube maker, purchases Video Industry Products Co., Paterson, N. J., making TV & CR test equipment, which moves into new 10,000-sq. ft. plant at 159 Marshall St., Paterson. An aid to makers of TV picture tubes, fluorescent lamps, etc., is Navy’s new 40-p. Survey of the Theoretical Aspects of the Luminescence of Inorganic Crystalline Solids (PB 102 597). It’s available at $1 from Office of Technical Services, Dept, of Commerce, Washington, D. C. Hundreds of electronic and electrical patents owned by Govt, have been made available to American industry for free use. Total of 2339 available patents are listed in booklet, Govt.-Otvned Inventions for Free Use, for sale at $1 by Supt. of Documents, Washington.