Weekly television digest (Jan-Dec 1963)

8— TELEVISION DIGEST JANUARY 21, 1963 the new designs, and here's what tuner makers soy about using transistors or other semiconductors for oscillator: "We are now sampling a transistor tuner to the industry, with an interesting price; its principal advantage is reliability" (GI's Cohen). "We are now designing a transistor timer for later this year" (Oak's Wheaton). "We're examining the pros and cons of transistors; cost will be somewhat higher" (S-K's Edwards). "We're working now on a radical departure, which won't use a transistor but another type of semiconductor" (Gavin's Kemer). "Transistor tuners with excellent noise figures are available today — but at a large price; money will solve anything" (Blonder-Tongue Chmn. Isaac Blonder). Uhf tuner pricing situation is interesting. Already there's price war going on. This may be because demand is now relatively low, but all suppliers know that in 1964 market will suddenly swell to between 6 & 7 raillion. Therefore, everybody's jockeying for customers now in preparation for 1964's big payoff. Everybody's furiously trying to match everybody else's lowest price on low-end tuners. "Our uhf tuner will be in about the mid-$6 bracket," down from previous $7, Sarkes Tarzian Inc. Pres. Sarkes Tarzian told us. Oak's new timer is tentatively penciled in at "$6.50 or lower." GI has already instituted "important price reductions in anticipation of volume production." Largest manufacturer of uhf converters, Blonder-Tongue, is looking at OEM tuner business. But Isaac Blonder sums it up this way : "It's a tough field. All TV manufacturers ore capable of making their own. As tuner suppliers, we'd have to exist in the Never-Never-Lond between their profit and ours." Tuner manufacturers almost unanimously say they hove entered or will enter converter business. Tarzian is in single-channel converter manufacture (for distribution by uhf stations). GI is "currently building converters on contract and will announce our own converter line soon." Standard Kollsmon is "getting into the converter business through parts jobbers and private label." Oak has given up entry into converter business on its own, but is now tooling up tuners for converters made by others. Converter makers agree their business has felt a lift recently, but discount theory that all-channel low has had "psychological" impact. Soles of converters, they agree, are directly dependent on new uhf stations going on air. GOVT. ZEROS IN ON FRANCHISING RESTRICTIONS: Sweeping changes in traditional marketing procedures may be forced by rash of govt, investigations of franchise system. In various Federal Court cases throughout country. Justice Dept. & FTC are charging that some franchise agreements are peppered with illegal restrictions that limit competition. Of special importance is govt, case against White Motor Co. which went before U.S. Supreme Court last week. "Anti-trust policemen claim restrictions in franchise contracts often tend to undermine the merchant's independence & moke him a tool of the bigger company," noted Jan. 14 Wall St. Journal in comprehensive wrap-up. "Among other things, it's said, certain franchise operators illegally attempt to free their dealers from competing with one another — by establishing common prices for all or by granting dealers territorial monopolies." White case likely will be bellwether of "intensive legal barrages" which Justice Dept. & FTC ore directing "at what they consider franchising abuses," Journal said, adding: Supreme Court decision (expected before June) favoring govt, "could encourage a broader attack." Here's gignificance of White cose, as seen by Journal: "When White Motor admitted its contracts [with distributors] restrict sales territories, customers and sometimes prices, a Federal Court in Ohio refused to let the company try to justify these practices when it ruled such limitations are a curb on competition & illegal in themselves." Continued Journal: "A key question in the case now is whether the govt, must prove that the granting of exclusive sales territories or the setting of dealer prices unlawfully restricts competition, or whether it may simply show that such practices prevail & obtain a court order against them, os it did in the White suit in the district court. If the Supreme Court upholds the lower court, which took the view that the territorial & price restrictions were illegal on their face, the effect could be a death blow to contracts restricting franchised dealers to well-defined markets or setting their prices."