Television digest with electronics reports (Jan-Dec 1953)

9 PAY-AS-YQU-LQOK TV popped into the news again this week, in wake of introduction of bill to call subscription TV or radio “common carrier” (H. R. 6431), submitted by Rep. Hinshaw (R-Cal.), Pasadena Congressman who ranks next to Chairman Wo'lverton on Commerce Committee. Cries of anguish rose from subseription-TV proponents, and understandably so, since status as common carrier would make fee-TV subject to rate regulation by FCC, limitation of profits to “reasonable return on investment,” etc. — hardly what they have in mind. It will be months before House gets around to considering bill, but its introduction may well prove to be spark finally setting off official debate on subject. It’s long been our opinion that Congress will regard subject too juicy for FCC to handle alone (Vol. 7:34). Even if FCC finds time to consider matter (it has petition for hearing from Zenith), mere pendency of bill may well forestall decisive Commission action. Hearing that he is being charged with “blocking” subscription TV, Hinshaw stated that bill is “exploratory,” that purpose is to get everyone’s views on subject. In wake of Hinshaw’s bill, Zenith held press conference in New York this week, showed new promotional film. Zenith publicity consultant Millard Faught opined that FCC will “cooperate with the inevitable” and approve idea. Another fee-TV proponent, Arthur Levey (Skiatron Corp.) said he was sure Congress would prove reasonable, stated he plans west coast demonstration of his punchedcard technique. ■ “Extraordinary expenditures” by NBC in promoting WVEC-TV (Ch. 15) in Norfolk area were suggested as “proper subject of inquiry” in letter this week to FCC from Eliot Lovett, Washington attorney for WTAR-TV, Norfolk vhf which is switching its affiliation from NBC to CBS (Vol. 9:20-21,24,29). He said Commission may wish to determine whether WVEC-TV “has relinquished control of the station, even on a temporary basis.” WVEC-TV attorney Marcus Cohen quickly shot letter to Commission charging “what WTAR-TV is really complaining about is the fact that it will no longer enjoy a complete monopoly of newspaper and TV circulation in the market.” Meanwhile, WVEC-TV pres. Thomas P. Chisman announced station, due on air in few weeks with full NBC-TV schedule, has signed $125,000 worth of local business in last 10 days, including 52-week contracts for one 30-min. and two 15-min. programs as well as 30 weekly station breaks. The 30-min. was sold to Smithfield Packing Co. (hams) , thru Ferguson & Kennei-ly, Norfolk. Walter Schwimmer Productions Inc., Chicago, has filed $1,000,000 damage suit in Chicago Federal court charging copyright infringement by Cowles Publications Inc., United Television Productions Inc. and Telenews Productions Inc., claiming UTP-distributed Look Photoquiz is copy of Schwimmer’s phone quiz Movie Quick Quiz. In $505,000 plagiarism suit filed in Santa Monica, Cal. against CBS, N. W. Ayer and sponsors, radio writer John W. Greene alleges You Are There copies his Broadcasting History submitted to network in 1947. National Union Radio Corp. reports sales of $7,723,082, net profit of $334,844 (13<* a share) for 6 mo. ended June 30 vs. sales of $6,580,642 and loss of $34,963 in same 1952 period. Muter Co. reports net profit of $261,447 or 40 <i per share on 661,825 shares, for first 6 months of 1953 vs. $212,002 (33 i on 651,200 shares) same 1952 period. Cornell-Dubilier reports $34,081,000 sales, $1,258,353 net profit ($2.35 a share) for 9 mo. ended June 30 vs. $27,396,372 sales, $1,105,743 profit ($2.05) previous period. Financial & Trade Notes: A rosy picture of present and prospective business is painted by Philco exec. v.p. James H. Carmine, in response to inquiry from Television Digest. He said company’s 6-mo. report, due in few days, will show total sales well over $235,000,000, about 40% ahead of last year, marking records for both second quarter and first half 1953. Both sales and earnings are substantially above prior periods despite rising manufacturing costs and strong competition, he said. “Philco sales of TV receivers in the first 6 months of 1953 were an astounding 59% above same period of 1952. Sales in new uhf markets have been well up to expectations. Sales of radio sets were 42% ahead. Sales in the booming air conditioner market, in which Philco has led in sales for the last 17 consecutive years, were 62% above the first 6 months of 1952. “The fact that Philco’s TV sales were 59% above last year while the subject of color TV was being widely discussed and when some persons were predicting ‘color by Christmas’ proves that the sale of black-&-white sets has not been seriously harmed by publicity about color. The public understands that color TV is a long way off, that it will be very expensive at first and that it will continue to get the same high class entertainment now being enjoyed on new black-&-white receivers.” * * * * Motorola achieved all-time peaks in both first half and second quarter sales, reports pres. Paul Galvin. First half sales were $109,532,968, up 57% from the $69,793,051 of first half 1952. Second quarter sales were $44,673,101, up 44% from the $30,939,956 of 1952 quarter. Earnings after taxes for first half were $4,640,679 ($2.40 per share) vs. $3,129,704 ($1.62), and for second quarter were $1,466,471 (76(1) vs. $891,569 (46<?). Pres. Galvin reported communications products and home and car radios were up considerably over last year and said Motorola “expects to maintain company’s No. 1 position in both two-way and consumer radio.” With new TV markets opening and existing stations extending range of coverage, he looks for satisfactory last half in TV. When color is ready, he assured stockholders, Motorola will be ready for its share of market; but due to smaller picture and prices 3 to 4 times equivalent size black-&-white, he predicted color will start out very slowly and will accelerate to become quite important from a sales standpoint in 1956 & 1957. “But black-&-white,” he added, “will represent large volume and profit for many years to come.” * * * * Stromberg-Carlson sales for first half 1953 totaled $31,042,754, net profit $1,071,271 ($2.43 on 420,875 shares), compared with sales of $19,861,125, profit of $580,342 ($1.56 on 329,119 shares) for first half 1952. Second quai-ter sales were $17,703,551, profit $404,971 (88d) vs. $10,860,316 and $248,191 (91tf). Pres. Robert C. Tait said outlook for rest of year is “encouraging,” predicted “steady improvement throughout the balance of the year” for TV-radio div. Broadcasting div. (WHAM-TV & WHAM, Rochester) continues to operate profitably, he said, and along with telephone and sound equipment divisions, has “assumed major importance in our over-all sales and earnings picture.” Packard-Bell sales for 9 mo. ended June 30 were record $24,952,801, net profit $1,151,729, which compares with $22,724,273 sales for all fiscal 1952 and with $17,008,627 sales and $863,426 profit for 9 mo. ended June 30, 1952. Magna vox report for fiscal year ended June 30, due in few weeks, will show sales of about $60,000,000, compared with $37,000,000 in preceding fiscal year, according to pres. Frank Freimann.