Weekly television digest (Jan-Dec 1962)

8— TELEVISION DIGEST AUGUST 6, 1962 per sec., can provide more than hour of music. Specially designed changer, on which 5 or 6 cartridges can be stacked, automatically threads, plays & rewinds tape. System can be used for home recording as well as playback. 3M had press preview last week of its first new tape recorder product since it took over Revere Camera Aug. 1, 1960. It's not cartridge system, but new Wollensak 1580 stereo recorder, lightweight (26 lb.), 22 watts output, loaded with features, at $379. It's standard open-reel type of recorder. At N.Y. preview of Wollensak machine, 3M exec, vp Bert S. Cross outlined initial plans for cartridge recorder. Cartridge device will be market-tested in as-yet unchosen "major U.S. metropolitan area" before end of this year, with nationwide marketing due next year. Cross said cartridge unit is designed to broaden overall tape recorder market, not replace open-reel types. For time being, the tape changers will be marketed only by Revere; Cross said decision on whether to solicit OEM business from package hi-fi manufacturers will be made later. It's understood Columbia Records will supply programming tapes for new cartridge system. Much of initial development work on tape changer was conducted by CBS Labs. Several years ago, 3M had signed up Zenith and Grundig (Germany) as OEM customers for its system. But there were snags in development work and 3M wasn't able to meet its target dates. Initially, cartridge tape recorders are expected to be competitive in price with "open-reel tape recorders of equally high quality," we were told by one Revere official. Although 3M is mum on future plans for cartridge system, it's good bet that it hopes it eventually will become competitive with stereo disc changers, rather than with open-reel tape recorders. Although its Revere subsidiary will manufacture (and perhaps license others to manufacture) tape changers, it's good bet 3M is really more interested in the blades than in the razor. Its real basic interest understandably is in promoting wider use of recording tape, of which it is largest manufacturer. Wide-scale use of tape as basic home music system won't come until tape handling & playing is as simple as disc changers, and tapes are as inexpensive as comparable discs. This was stated purpose of 3M's cartridge system when it was first shown in 1960, and there's no reason to believe there's been any basic change in outlook; 3M has put too much effort & money into it to classify as just "refinement" of tape recorder. It's hoping it will be introducing complete new music system. In words of one financial house, which recently evaluated 3M, new recording system "is expected to have a significant impact on future earnings." SET MAKERS GROPE FOR NEW PRICE APPROACH: New type of price confusion is developing in home electronics industry in wake of intensifying attacks on list prices and was-is & other types of comparative-price advertising (Vol. 2:28 pl4). Although some manufacturers are still holding firm to list prices, our discussions with industry leaders have revealed these 2 accelerating trends: (1) Greater use of open lists. (2) Development of new terminology to impart product values to public and, at same time, to emphasize with new clarity that manufacturer's valuation is strictly an opinion & not a price. In the wings are still other impending developments which could introduce further confusion to pricing picture. Among them are : ( 1 ) Quality Stabilization Bill, introduced in Congress last February (Vol. 2:11 p6), which, simply stated, represents a kind of national fair-trade law. (2) Pricing gimmicks now being fieldtested in other industries. As example of latter, we were told that one major housewares manufacturer has developed program under which it retains ownership of products until sold by retailer. This, in effect, makes retailer the company's sales agent, enables manufacturer to control sale price. Net result to TV-radio-phono consumer in immediate future is that he will be reading prices which will have little or no uniformity of meaning. In addition to familiar "manufacturer's suggested list," he will read such qualifiers as "made to sell for less than," "optional with dealer," "should sell for less than," and so on. Additionally, some of tomorrow's TV ads will carry manufacturers' statements to effect that any resemblance between price noted in ad & the price consumer can expect to pay in store is purely coincidental. Leading price-change parade are RCA, Westinghouse & GE. Each has, or is readying, new terminology which will supplant list prices with valuations that, they believe, will be less subject to consumer confusion