Weekly television digest (Jan-Dec 1961)

12 SEPTEMBER 11, 1961 Consumer Electronics .... MANUFACTURING, DISTRIBUTION, FINANCE CROSBY SUES GE OVER FM STEREO: The expected patent battle over FM stereo erupted at week's end, as Crosby-Teletronics Corp. instituted a patent-infringement suit against GE. Filed in N.Y. Federal Court, it charged "infringement on a Crosby patent covering the method & equipment necessary for the broadcasting & reception of stereophonic FM in accordance with the standards adopted by the FCC last April 19." The 1958 patent, said Crosby "is the only one which relates to the FCC-approved multiplex stereophonic FM broadcasting method." There was no immediate comment from GE. Thirty manufacturers have signed licensing agreements with Crosby, the company announced. GE also has set up licensing procedures for FM stereo under its own patent applications. Crosby's FM-stereo multiplex system, which differed from the Zenith-GE system finally approved, was rejected by FCC — but it employed the same basic plus-&-minus techniques governing content of main FM carrier and subcarrier. PLENTY OF STEREO AD SUPPORT IN N. Y.: There was no lack of advertiser support for FM stereo last week in nation's No. 1 market as N.Y. Times' WQXR-FM inaugurated stereocasting. Despite complaints from some FM broadcasters that set makers had refused to put their money where their mouths were and sponsor stereocasts, WQXR-FM found response so good that it stepped up its planned schedule of stereocasts from 55 minutes to 10 hours weekly — including record, tape & live shows. It will be expanded another 2 hours Oct. 7 when the station starts broadcasting recordings of Boston Symphony concerts. Sponsors already signed up specifically for FM stereocasts are hi-fi component manufacturers Fisher Radio, Pilot Radio, H. H. Scott & Harman-Kardon (Jerrold Electronics). WQXR Pres. Elliott Sanger told us "2 or 3 others" are due to start soon (one understood to be GE). The station, a pioneer in AM-FM stereo (which required 2 radio receivers), has dropped all AM-FM stereocasts and converted them to FM stereo. Among previous AM-FM sponsors involved in the conversion are RCA Victor Records, London Records, Angel Records, Capitol Records. First reactions to initial stereocasts have been "remarkable," Sanger told us. Kansas City Snowball: Corning Glass Works’ “Operation Snowball” moves next to Kansas City Sept. 15-Oct. 1 for a promotion of TV sets. According to Coming, 7 major set distributors, Kansas City Power & Light Co., the Electric Assn, of Kansas City and area NARDA-member dealers are participating. Included in the activities will be a “1962 TV preview” and the award of 40 free TVs to encourage traffic in cooperating dealers’ stores. Participating will be distributors for Magnavox, RCA, Zenith, GE, Sears Roebuck, Philco & Westinghouse. New Plants & Expansions: Sprague Electric will open this month in Hillsville, Va., a leased 30,000-sq.-ft. plant for production of capacitors and electronic sub-assemblies. The plant eventually will employ about 600 persons • Sangamo Electric will add 65,000-sq.-ft. to its Pickens, S.C. plant and transfer it to capacitor production operations now carried on at a leased plant in Marion, 111. The latter plant will be closed early next year. FM-Stereo Warning: “Let’s Wait at Least Till Christmas Before We Butcher Our New Progeny, FM Stereo.” So reads the sarcastic headline on a unique full-page trade ad signed by Friendly Frost Chmn. Gerald 0. Kaye. The text: “Leading engineers say FM stereo is the first major breakthrough in consumer electronics since the advent of TV. So let’s kill it! Many major broadcasters & governmental authorities have indicated they believe FM stereo will rapidly replace AM radio as the No. 1 audio entertainment medium in this country. So let’s kill it! Manufacturers, distributors and dealers project sales of 50 million sets in less than a decade. So let’s kill it! And why not? Traditionally, our great industry has a national, if not international, reputation for self-destruction. So let’s get a good start. Let’s fight amongst ourselves! Let’s over-produce! Let’s cut prices! Let’s make ‘short-cut’ merchandise! Let’s try to establish a new industry record! Let’s kill this baby before it is born! For once, let’s not!”