Weekly television digest (Jan-Dec 1960)

18 JANUARY 11, 1960 Even the industry's traditional "tin can"— the boxy table model— is getting a fine-furnitnre upgrading. Much more prevalent at this year's show were furniture "bases" (not tables), which surround & disguise the prosaic table TV in period or modern dress. Almost every major maker showed them. "Home entertainment centers" — TV-AM-FM-stereo-phono — were added by several manufacturers, and the combination seemed to be showing strong signs of new life, keyed to stereo. For example. Westinghouse dropped in 4 new ones. Magnavox added whole new combination series. In lower priced field, Muntz discontinued all non-TV stereo units in favor of TV combinations. In stereo, "3-channel" approach definitely is taking hold as are outriggers & tiny satellite speakers. Unhappy about Better Business Bureau's censure of the term "3-channel" as possibly misleading (Vol. 15:51 pl4), manufactiurers are casting about for another name. Three-channel leader Motorola seems to be soft-pedaling the phrase and highlighting instead "3 separate amplifiers, 3 separate speaker systems." Others are saying "3 sound channels." Optimism about stereo is guarded, but most makers agreed with our forecast last week (Vol. 16:1 pl7) that business this year will be about 10% better than 1959. There was more interest in color TV than at any time in last few years. At meetings with manufacturers, some dealers were asking "when will you have it?" Set makers were eyeing the possibility of going into color on the same scale and by the same approach as Admiral (whose full color line uses RCA-made chassis) because of that manufacturer's success in its limited-quantity flyer into color last year. Rumors abounded that this manufacturer or that one was going into color with a line of RCA-built sets — but if there was any truth to them, no set maker mentioned was willing to confirm. Denials of plans for 1960 color sets came from Zenith, Motorola, Westinghouse, Sylvania, others. It's known, however, that RCA is negotiating with set makers to supply more color lines this year. Nevertheless, no one saw a major technical or price breakthrough — or any real mass market — in color's near future. Another sign of the expanding market this year is re-entry of old names and entry of at least one new one into TV field — a unique phenomenon in the light of the attrition of TV brand names in recent years. Capehart showed magnificent line of furniture stereo & TV-stereo combinations, promised full TV line, including portables & table models, next June. Sonora label, revived by Trav-Ler, was present in Chicago with short low-priced TV line. Metz of Germany showed stereo lines which included combinations with RCA Victor 21-in. TV chassis. Metz officials said they had placed initial order for 5,000 RCA TV chassis (see p. 20). There were more competitive U.S.-made pocket transistor radios shown this year — but also more Japanese ones. Manufacturers were sharply divided on whether imports have reached their peak, and what effect the midgets have had and will have on U.S. radio market. Some even argued that Japanese had done American radio makers a favor by expanding market, opening new channels of distribution, etc. (see p. 21). Not that everything was milk & honey at the Chicago 1960 kick-off. Some trade experts — but not all predicted that the extremely tight credit situation would blunt the sales boom both with regard to new housing starts & consumer installment buying. And other industry leaders warned of continuing threats in industry practices Philco Pres. James M. Skinner Jr. in "price selling," Westinghouse consumer products vp Chris J. Witting in "shoddy practices" by manufacturers, distributors & dealers. Zenith Pres. Joseph Wright in U.S. electronics firms' technical assistance to foreign competitors. (For details, see pages 19 & 20.) ELECTRONICS IMPORTS UP. EXPORTS DOWN: Growing international electronics competition has resulted in a drop of nearly 5% in U.S. exports of electronic products during the first 9 months Qf 1959 /^nd U.S. imports of electronic items were more than 2V2 times greater than those of same 1958 period. Nevertheless, U.S. electronics' balance-of-trade is favorable— our country still exports well over 5 times more than it imports. These figures were compiled by the electronics div. of the Commerce Dept.'s Business & Defense Administration on basis of U.S. & foreign govt, statistics. They show that Jan.-Sept. 1959 electronics imports totaled more than $48.8 million, while exports totaled $261 million. T.iriTi'fi cihare of electronics exports to the U.S. were Japanese radios. U.S. govt, figures show more than $30-million worth were imported here during the 9-month period. Japanese figures, using different base, place the total radio exports to U.S. at $37.5 million. Other foreian electronics sources for America are West Germany ($10.2 million in radios, radiophonos & TVs plus $3.9 million in sound recording equipment last year). United Kingdom ($9.2 million in record players last year) and the Netherlands.