Weekly television digest (Jan-Dec 1960)

VOL. 16: No. 2 21 more about OPTIMISM ABOUT JAPAN THREAT: Far-away Japan was far & away the most ubiquitous presence at the Winter Marts in Chicago. It was everywhere, in name & emulation. Studding the displays of virtually all manufacturers were American versions of Japanese-inspired mite-size transistor radios — and some were Yankeemade with Nippon components. Studding our conversations with industry leaders in Chicago were numerous references to Japanese progress in color TV, transistor TV, instrument styling and, of course, in radio-market swallowing. TV executives we interviewed were unanimous in their conviction that Japan represents no threat to the U.S. TV market, that no color-TV “breakthroughs” are brewing in Nippon, that American engineering is constantly widening the technical gap between the 2 countries. Sylvania Home Electronics Pres. Robert L. Shaw also stressed that Japanese designers so far have shown little understanding of American furniture tastes, that Nippon cabinetry will find no home in U.S. homes. The same industry leaders parted company on the question of Japan’s position in the U.S. radio market. For every U.S. manufacturer who told us Japanese radio imports were at high tide, there was one who warned that the flood is yet to come. For every one who claimed that American know-how is pushing Japanese radios back where they came from, there was one who foresaw smaller, better and cheaper Japanese imports. Has Japan Broadened U.S. Radio Base? Most surprising, we found that U.S. leaders are sharply divided on the damage the foreign invasion is doing to the American market. It would appear that while some publicly belt foreign imports, they privately take off their hats to the Japanese for broadening the radio market, finding new retail outlets, spurring product improvement. One forthright TV-radio marketing executive told us: “How can the American radio market say it’s being hurt by Japanese imports? Sure, share-of -market is down, but our smaller share of a much bigger market enabled most U.S. radio makers to sell more sets last year than they have in a long while. The Japanese have stirred things up. They’ve shown us new ways to retail, new distribution outlets — such as jewelry & hardware stores — and they’re making us produce smaller, better product at lower prices. This is good for industry, as last year’s sales clearly show.” Admiral sales vp Carl E. Lantz believes the worst is over. “We at Admiral believe that the Japanese transistor radio imports have reached their peak and should begin to taper off during the year ahead, with American manufacturers increasing their share of the market,” he said. Admiral electronics vp Ross Siragusa Jr. told us that American manufacturing techniques & increasing knowhow are rapidly overtaking the Japanese. He pointed to Admiral’s 7-transistor $29.95 radio as an example of the industry’s retaliatory power. Both can get quick argument on the subject. Motorola consumer products exec, vp Edward Taylor believes we’re far from high tide. He points out that Japan makes a good product for a good price, and that Motorola has sold and continues to sell a slew of radios with Japanese parts. Zenith Pres. Joseph S. Wright, conversely, warned that the home electronics industry in effect is digging its own grave by giving aid & comfort to foreign competition. ile pointed to the sharp imbalance of U.S. & Japanese wage scales and said foreign competition is producing & selling products here at some 60% of the prices of comparable products offered by companies helping them. “Before we’re through,” he said, “those who helped foreign competition will realize they’ve made a serious mistake.” He suggested: “Let’s send Japan Jimmy Hoffa, Reuther and the others — to help even things out.” The made-inJapan confusion is apparent. Companies like RCA, Admiral & Zenith continue to plow an All-American course. Others, like GE & Motorola, use Japan-made componets. Still others, like Columbia, Olympic and revived Capehart, have made-in-Japan radios in their lines. Obviously, the answer to whether the Rising Sun has set depends on where you sit. * * * Battery-operated transistor TV sets, due to be announced this spring by at least 3 U.S. manufacturers, are also planned for production soon in Japan by a half-dozen set makers. First to be announced were by Sony (Vol. 16:1 p20) and Victor Co. of Japan. Both are 8-in. sets. The Sony set will sell domestically at slightly under $200. U.S. TV makers have stated that transistor portable TV sets here must be sold for less than $250 to be acceptable. This is the price of Philco’s reflex transistor portable Safari. Gas-operated TV set was demonstrated by Westinghouse at Chicago’s Merchandise Mart last week in an experimental adaptation of a thermoelectric generator which converts heat from a butane bottled-gas flame. A standard portable TV chassis was used. Other developmental products displayed by the company’s new products dept.: (1) A civil defense 2-band portable radio with built-in radiation detector, which can be operated from battery or by means of a hand-cranked generator. Either house current or the hand crank can be used to recharge the battery. (2) A 3dimensional TV set on which visitors could view their “frozen” pictures on storage tube polarized glasses. EIA’s “end the stereo & hi-fi confusion” campaign (Vol. 15:49 pl7) has been approved by the phonograph section under Pilot vp L. M. Sandwick, after a presentation by the N.Y. ad firm of Muller, Jordan & Herrick. The program now goes to manufacturers, who will be asked to contribute “on a sliding scale related to equipment sales in various price categories.” EIA requested their responses by Feb. 1. The major aspect of the campaign will be a series of ads in mass-circulation magazines, EIA said, “emphasizing the faithfulness of today’s reproduced music and its values for the American family.” Trade ads & the production of an informational booklet are also planned. Revised TV-radio excise tax rules, bringing them in line with technical changes in the 1958 Excise Tax Act, have been formulated by the Internal Revenue Service. It set Jan. 18 as a deadline for “submission of views” by any interested manufacturers. The new regulations leave the present 10% manufacturer’s excise tax on sets unchanged. The principal proposed changes apply the tax to sets generally, but exempt equipment which is “suitable only” for military, marine & navigation purposes. Under the old rules, taxable sets were defined as “entertainment” sets. New Philco research div. will consolidate all the company’s research operations under one roof in a new plant in Whitpain township in suburban Philadelphia. Research dept, chief Donald G. Fink will be director & gen. mgr. of the division.