Television digest with electronic reports (Jan-Dec 1953)

r Trade Report October 24, 1953 DEALERS DREAD COLOR IMPACT ON XMAS TRADE: Uneasiness over effect of "color talk” on sales seems to increase day-by-day among dealers, and they hope fervently that FCC will withhold its go-ahead on commercial color until after Christmas. Most dealers appear reconciled to a transitional dislocation to come when color sets are actually on floors. In fact, they expect color to uncork a dramatic new boom — eventually. What worries them is that a headline-bedazzled public will simply sit on its collective wallet through vital Christmas season, buying nothing. Market for top-of-the-line 24-in. & 27-in. just hasn't grown as predicted — and almost everyone attributes that partly to color news (see below). This disappointment has been absorbed with an unhappy shrug, but the real fear now is that demand for average bread-&-butter sets will narrow down to a critical trickle. NARDA has surveyed dealers, found that "customers' talk about waiting for color is tremendous." It notes that Christmas season ordinarily accounts for 36% of entire year's volume, says any sizable dropout now would be "disastrous". Add that seasonal factor to the 2,400,000 sets in all pipelines (Vol. 9:42) — and there's no question but that situation could become dangerous in a hurry. What to do about it? Dealers are frankly imploring FCC to hold off decision until end of year, at least. As of today, however, with pressures from Congress and certain elements of industry to get the standards out quickly, chances are greater FCC will act before Christmas than after. But there's no way to predict exact date beyond our estimate last week that it will come in late Nov. or late Dec. (Vol. 9:42) ; and, of course, burden is on the trade to tell public the real facts about color availability — such facts as: (1) Color sets will be very expensive at first — $700-$1000. (2) Initial pictures will be small — actually about 11%-in. in 15-in. bulb. (3) Production will be negligible first year — 50,000-250,000, perhaps. (4) Number of color programs will be limited — for year or so, at least. (5) Equipping stations for color will take plenty of time. (6) Black-&-white sets are bigger, cheaper and better than ever before. £ 5{C 5}C Reflecting color's impact on consumer, is diminished demand for 24 & 27in. models. Major manufacturers agreed it's at least partly due to holding off by the higher bracket buyers, against the day first color sets emerge. "It's only natural that folks should hold off buying an expensive set," said Motorola's Robert Galvin, "when they read every day about color for Christmas or thereabouts. There doesn't seem to be much we can do about it. We just hope it does not affect the movement of 17 & 21-in. sets, which are holding up well . " An Admiral spokesman, while not minimizing color talk, said it isn't as big a factor elsewhere as it is in East, where tests were conducted and press coverage is much more extensive. But Philco blames color for slow sales of 24-in. , which are "not moving nearly as well as anticipated" and 27-in. , which are "not a big seller." RCA intends to buck indifference to 24 & 27-in. sizes, apparently, for it reveals plans to start Dec. production of a 24-in. console, 2 models to be introduced early in 1954, no prices set yet. Its four 27-in. have enjoyed "only fair" sales, said a spokesman, but he too observed prices ($700, $750, $760, $810) may be reason. * * * * TV production maintains high pace, totaling 175,663 units week ended Oct. 16, compared to 173,040 in preceding week and 170,685 week ended Oct. 2. It was year's with Electronics Reports WASHINGTON 5. D C • TELEPHONE STERLING 3-J75S 10