Television digest with electronic reports (Jan-Dec 1953)

14 Topics & Trends oi TV Trade: The electronics boom, paced by TV, had big National Electronic Distributors Assn. (350-plus members) in high state of exuberance at St. Louis convention this week, judging from what they said publicly and to newsmen. For example, past pres. W. D. Jenkins, who heads Radio Supply Co., Richmond, was quoted as saying: ‘‘If any business is depression-proof, this is it. People might stop buying new TV sets, but as the sets get older they need more repairing. That means sales of tubes and other parts.” And NEDA chairman Aaron Lippman, head of Newark company bearing his name: “We’re in the most envious business in the world. Ten years from now you won’t be able to turn around without turning to electronics — in your office, at home, in your car — and practically every object you use will be made with electronic devices in the background. All of that means a bigger market for replacement parts.” Panel topics also reflected the optimistic moods: “How to Provide Proven and Adequate Facilities for Expansion” and “How to Finance Future Growth.” These middlemen handle no receivers, for most part, dealing mainly in components and accessories. TV equipment is biggest item, and some idea of the growing magnitude of their business is given in figures quoted by John T. Thompson, GE mgr. of tube replacement sales. Replacement market for receiving tubes, he estimated, would run 123,000,000 in 1954; 133,500,000 in 1955; 150,000,000 in 1956; 152,000,000 in 1957. It will taper down to 150,000,000 in 1958 and to 140,000,000 in 1960, he added. Picture tube replacements were estimated as 4,200,000 in 1954, black-&-white ; 5,500,000 in 1955, of which 50,000 will be color; 7,550,000 in 1956, of which 350,000 will be color. By 1959-60 volume will level off to 6,500,000 units, of which 2,000,000 will be color, the GE marketeers estimate. RCA’s R. B. Sampson figured distributors’ sales of all electronic parts and equipment this year at around $650,000,000, compared with $600,000,000 last year and $360,000,000 in 1950. Next year, he predicted, it will hit $800,000,000 and by 1955 it will reach $1 billion. * * * * Ray A. Rich, Philco v.p. -refrigeration div., forecast a $7.5 billion volume of retail trade in TVs and appliances by 1960, about twice present volume, in speech Sept. 16 at fall conference of Bureau of Home Appliances of San Diego County, Cal. Rise was attributed to increasing population, larger payrolls, more family group formations — plus replacement market for electric appliances such as refrigerators, ranges and TV sets. The U. S. economy is a dynamic one, said Rich, and by 1960 the nation will enter an era of prosperous living for all greater than any yet known. Citing growth of the appliance industry, he pointed to 1941 sales of 20,284,400 major appliances and radios at $1,295,572,150 retail, rising in 1951 to 26.244,000 units (including TVs) at $4,927,707,300. For 1960, he predicted sales of 6,000,000 refrigerators, 2,500,000 electric ranges, 2,400,000 electric clothes dryers, 5,000,000 ironers and nearly $1 billion worth of air conditioners. Canadian TV boom, and how it spreads prosperity not only to allied electronics industries but also stability to such basic economic businesses as steel and textiles, is described in Sept. 12 Financial Post, Toronto; it foresees TV sales of nearly 400,000 this year, as against 146,370 last year. Sylvania breaks ground for 50,000-sq. ft. tube plant at Fullerton, Cal., near Los Angeles, due for completion by March, 1954. Trade Miscellany: Record Industry Assn, of America will launch 3-week promotion of phonograph players in Baltimore Oct. 5 to study relationship of sales of players and records; list will be kept of all new phonograph buyers, and after 120 days RIAA will query them on how many and what type of records they’ve bought since then . . . N. Y. residents spend $167,000,000 a year on TV & radio, $250,000,000 for appliances, according to New York Times survey . . . Raytheon’s TV-radio div. has prepared new 20-min. sales training film in color titled Nothing to Argue About . . . Kansas City municipal committee shelves proposed ordinance for mandatory inspection of all TV antennas, instead amends building code for safety regulations, to include safe grounding of supporting poles and masts, and lightning arrestor for lead-ins . . . Temple U survey of Philadelphia families early this year showed more than 50% of families interviewed bought TV sets at discounts averaging 25% ... George’s, largest Washington TV-radio retail chain (12 stores), plans to add home furnishings line in near future, pres. Geo. Wasserman saying move’s due to low markups on TVs and appliances. Cumulative TV sales by Canadian factories will total about 575,000 by end of year, representing retail value of $250,000,000, reports RTMA of Canada on basis of sales to date. It gives this breakdown: Sales prior to 1950 — 8212, value $3,418,500; in 1950—29,611 at $12,858,083; in 1951—40,615 at $21,237,442; in 1952 — 146,373 at $64,677,682; estimate for 1953 — 350,000 at $148,750,000. TV sales first 7 months this year totaled 134,472, at average price of $384, compared to production of 187,833. Projected production figures estimate 134,420 sets will be turned out in next 3 months. For July alone, sales were 9332, production 19,980, inventory 59,715 at month’s end. Toronto led in sales with 2783, Quebec 2394, Hamilton-Niagara 1120, British Columbia 1024, Ottawa and eastern Ontario 883, Windsor 673, other Ontario 313, Prairies 75, Maritime provinces 67. Shipments of TVs to dealers totaled 3,335,262 in first 7 months, when production was 4,150,525, according to RETMA’s state-by-state and county-by-county tables released this week and available from RETMA upon request. It represented 39% gain over first 7 months of 1952, when shipments were 2,406,757, as against production of 2,517,157. Every state in nation shared in shipments, New York as usual leading with 314,778; Pennsylvania second, 281,831; California third, 264,834. Montana, where Butte’s KOPR-TV (Ch. 4) and KXLF-TV (Ch. 6) went on air in Aug., trailed list with 1461 sets — but, as portent of better days to come, 802 of them were shipped in July alone, as compared with only 659 for entire preceding 6 months. For July, TV shipments totaled 313,012, compared with 326,394 in June and 288,247 in July 1952. Video Products Corp., 370 Seventh Ave., N. Y. (Richard A. Marsen, pres.) filed petition under Chapter XI of the Bankruptcy Act in N. Y. Federal district court this week, proposing 100% settlement payable in monthly installments of 2% after 6 months. Firm has plant in Red Bank, N. J., and same interests own Sheraton Television Corp., making TV sets under that brand name. Liabilities are estimated at $945,000, assets at $878,000. Largest creditors are RCA, $143,000; GE, $75,000; Sylvania, $42,135; Standard Coil, $30,000; Empire Coil, $30,000; Buck Engineering Co., $17,250; American Specialty Corp., $13,500; Thomas Electronics, $11,000; Arcturus Electronics, $9000: Hytron, $8260. Canadian Admiral reduces price of its 17-in. mahogany plastic table model from $270 to $250, sets these other prices: 24-in. mahogany or walnut open-face console $650, blonde $670; 27-in. mahogany half-door console $850; 27-in. blonde full-door console $900.