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FEBRUARY 27, 1961
ZENITH'S DECISION — A BOOST FOR COLOR: Zenith Radio Corp.'s entry into the color
TV field next fall is expected to give color its biggest push since RCA began its long, virtually lone campaign. The mere announcement last week by Zenith — the nation's largest TV manufacturer in 1959 & 1960 — touched off strategy meetings of officials of other set makers which have been hewing to the no-color line.
Warmest welcome came from Zenith's arch-rival RCA, which has sunk a reputed $130 million into color development & promotion, and has finally guided its own color-TV production into the operating-profit stage. Five other manufacturers currently offer color TV — Admiral, Emerson (Emerson & DuMont lines), Magnavox, Olympic, Packard Bell — all depending on RCA as their source of supply for tubes & other color components & sub-assemblies. Sylvania and at least one other manufacturer are expected to announce addition of color-TV sets later this year.
Zenith's move won't put color "over the top" automatically. “It's not a big market," Zenith officials explain — "but we want to be in it." The long-awaited "breakthrough" which will make possible a cheaper set is not here. The Zenith set will resemble RCA's in both appearance & pricing — 21 -in. round shadow-mask tube, consoles starting at $600, possibly table models priced lower. It will supply the push, not the panacea.
Step-up in NBC-TV & local colorcasting has been a big help in increasing RCA's color sales recently. Will Zenith's decision give the wheel another push and prompt a swing to color by CBS-TV & ABC-TV? At week's end, both networks said it was sets-in-use, not manufacturers-in-color, which counts with them.
From CBS-TV: "Our stand on color is what it always has been. When the manufacture of color sets increases perceptibly and audience demand warrants it, we will go into regular color programming." From ABC-TV: "There is no change in our policy on color. We do not feel that present set sales warrant it. When we feel the demand from our o&o's, affiliates and from public directly, we will go into colorcasting. Our N.Y., Los Angeles & Chicago studios are equipped to broadcast color within days after a go-ahead."
There are about 600,000 color-TV sets now in use, ARB estimated last week. Although RCA keeps color sales figures secret, it's a good guess that somewhat less than 150,000 color sets were sold last year (by all color manufacturers), up from 90,000 in 1959 and 70,000 in 1958.
Color won't be used in Zenith-RKO General pay-TV tests in Hartford, incidentally, even though RKO General Pres. Thomas O'Neil says the system is capable of handling color. In its pay-TV decision this week (see p. 1), FCC notes: "Decoders will receive vhf or uhf channels in monochrome and in color when a color decoder is used on a color receiver." A footnote states: "As noted above, however, color decoders would not be used in the trial proposed herein."
For details & background on Zenith color plans and industry reactions, see p. 14.
FCC'S 'PROGRAM UPLIFT' PROPOSAL: Because everyone who broadcasts or wants to is
vitally concerned, we're enclosing herewith the full text of FCC's proposed program-form revision ("Statement of Program Service") as a special supplement for all subscribers.
Document may be termed FCC's first major "program uplift" attempt in recent years. What's fundamentally different about it is that licensees & new applicants would be required to scout their areas and tell FCC precisely what they've done to determine community needs & what they propose to do to meet them.
Whole proposal raises elementary question of: "So what? — what if we tell them we've done nothing to determine community needs? Or what if we give them a glowing document — and don't follow it up with programs? Are they going to take our licenses away?"
Commission theory is this: (1) No one will ignore scouting completely. (2) Mere scouting around is bound to stimulate some action among broadcasters. (3) Those who are scouted — mayors, ministers, et al. — will eventually get tired of being consulted without seeing results, will pressure for action.
There's bound to be plenty of comment (deadline April 3, replies April 17), not only from industry, but from non-broadcast groups. For example. National Council of Churches of Christ plans a major filing. Comr. Hyde concurred in the proposal but he's mighty dubious, foreshadowing an ultimate negative vote. Said he: "The more the agency gets into this business, the more impossible its position is likely to become. It could find itself being held responsible by the public in matters involving creative effort, taste & opinion."
Late in the week, Comr. Craven added his concurring-but-almost-dissenting views: "I have been in the past, and I continue to be, unalterably opposed to the Commission establishing guidelines for the programming of broadcast stations. For, as I have frequently stated, it is the legal obligation & privilege of the