Weekly television digest (Jan-Dec 1962)

10— TELEVISION DIGEST NOVEMBER 26. 1962 Import Prices Down: Just how sharply factory prices of Japanese electronic exports to U.S. have dropped in last year is shown in average value of TVs & radios exported during first 9 months of 1962 vs. same 1961 period. Average factory price of transistor radios (3 or more transistors) exported to U.S. in 1962, according to Japanese govt, figures, was $9.51, down from $11.09 in comparable 1961 period. Average “toy” transistor radio (fewer than 3 transistors) declined to $2.25 from $2.58. Average TV set exported to U.S. this year was valued at $55.31, down from $79.42 last year. Average tape recorder was valued at $13.46. Average prices rose from 1961 to 1962 in 2 categories. Tube radios increased to $7.04 each from $6.48 last year, and radio-phono combinations jumped to $39.06 from $34.62. Average prices are computed from taxable value. Japanese exports as a whole rose again for first 9 months of 1962, compared with same 1961 period: TV sets, 86,899 units, up more than 600% from 12,308; transistor radios, 5,323,239, up 85% from 2,879,009; “toy” transistor radios, 2,109,520, down 37% from 3,330,508; tube radios, 1,202,362, down 18.5% from 1,474,937; radio-phonos, 67,832 (up 34% from 50,493); recorders, 605,943 (no comparison available). New TV set manufacturer: Color Electronics Corp., 81 Willoughby St., Brooklyn, N.Y., is now assembling color sets for private-label merchandising by dept, stores. Successor to Kane Electronics, it’s headed by Irving Kane, who was one of principals in old Viewtone Co., early TV set producer. Kane told us last week that sets use circuitry identical to RCA’s and that he has arranged for national distribution of color sets under Color Electronics brand name. He said production will soon reach rate of 60 sets a day. Indiana General & Western Electric have signed crosslicense agreement covering certain patents in fields of magnetic materials & related equipment, including quartz crystals, communications products, thin-film devises, ferroelectric & piezoelectric developments. Indiana General Pres. Robert F. Smith said agreement includes U.S. & Canadian patents of his film, Western Electric, AT&T, Bell Telephone Labs, other subsidiaries. Philco spent $7.5-8 million on its 1963 consumer products & “we are planning to spend an even larger sum on our 1964 lines,” according to Consumer Products Div. vp & gen. mgr. Larry H. Hyde. Approximately $3.5 million was invested in tooling up, he said, balance went into design & development. Hyde emphasized that $7.5-8 million expenditure was made by Philco after becoming a Ford subsidiary. Magnavox may be largest FM sponsor, now that its deal with National Assn, of FM Bcstrs. has been approved. Magnavox is paying NAFMB $150,000, in exchange for which it will receive 6 spots daily for 26 weeks on 158 NAFMB member stations beginning today. Stations donated the spots, and NAFMB will use proceeds to establish hq in N.Y. for FM promotion. Consent judgments to refrain from antitmst violations in sale of heavy electrical equipment have been agreed to by 12 companies involved in 1960 electrical price-fixing conspiracy. Move ended civil anti-trust action brought against Westinghouse, Federal Pacific Electric, CornellDubilier Electric, Sangamo Electric, 8 others. Set Makers' FM Monitoring Plan: Proposal for FCCindustry cooperation in monitoring FM stereo stations will be outlined to consumer products div. members this week at EIA’s winter conference Nov. 26-29 at San Francisco’s Jack Tar Hotel. Monitoring plan, worked out informally between EIA & FCC officials, is part of continuing effort to ease FM stereo growing pains. The informal agreement would provide for manufacturers to notify FCC when they believe stations may be deviating from FCC standards. FCC’s Harold Kassens says complaints of this kind actually have been relatively few, and this program would be informal supplement to Commission’s 2 mobile FM monitor units. Among other expected highlights of this week’s EIA meeting: (1) Finalization of definition of “high fidelity,” requested by FTC. (2) Discussions of FM stereo by James Gabbert & Gary M. Gielow of KPEN-FM San Francisco, before service committee & radio section. (3) Discussion of matters affecting electronics industry and estimates of 1963 business by EIA Pres. Charles F. Home. n Factory transistor sales in Sept. & year to date continued usual pattern: up in unit volume, down in dollar value. Unit sales increased to 20,568,110 from 19,386,202 in Sept. 1961, EIA reported. Dollar value dipped to $24,729,997 from $27,220,248. Jan.-Sept. unit sales rose to 179,397,511 from 136,490,332. Despite gain of nearly 43 million unit sales, cumulative transistor value dropped $8.4 million to $218,571,911 from $227,002,035 in 1961’s first 3 quarters. Here are EIA’s figures: 1962 1961 Units Dollars Units Dollars January 17,238,376 $ 21,469,598 12,183,931 $ 22,966,167 February 20,239,880 24,151,166 13,270,428 25,699,625 March 22,932,655 28,202,422 16,129,273 29,815,291 April 19,621,048 25,097,960 15,072,064 27,388,278 May 21,217,919 24,951,738 15,128,181 25,113,042 June 21,776,037 26,374,356 17,899,005 26,148,746 July 15,434,205 19,476,017 11,227,388 17,506,011 August 20,369,281 24,128,668 17,193,860 25,155,627 September 20,568,110 24,729,997 19,386,202 27,220,248 Totals 179,397,511 $218,571,911 136,490,332 $227,002,035 Average transistor factory price in Aug. declined to $1.14 from $1.41 in Aug. 1961 & $1.89 in Jan. 1961, noted Nov. 19 Wall St. Journal, adding: “However, it was still above the vacuum tube’s average price of 84(f in Aug.” Describing transistors’ infiltration of numerous consumer products, Journal pointed out: “Big as the TV market for transistors might someday be, RCA Group Exec, vp W. W. Watts & others think autos eventually will provide the greatest demand. Elmer H. Wavering, exec, vp of Motorola’s Automotive Products Div., predicts there may be up to 30 such devices in each new car within 5 years.” Buying plans up: Federal Reserve Board’s quarterly survey of buying intentions last month found more people planned to buy TVs & phonos during next 6 months than 3 months ago or year ago. Among findings: (1) 4.9% of families planned to buy TV set in next 6 months, up from 4.3% in July 1962 & 4.5% in Oct. 1961. (2) 2.8% intended to buy “radio & phonographic equipment costing $100 or more,” up from 1.9% in July 1962 & 2.5% in Oct. 1961. Pilot Radio suit against Liberty Music Shops has ended with consent injunction under which Liberty agrees not to use “Pilot” name on stereo hi-fi equipment not manufactured by plaintiff.