Weekly television digest (Jan-Dec 1963)

12— TELEVISION DIGEST JANUAHY 28. 1963 COLOR BANDWAGON-ALL ABOARD: Color’s momentum seems to be increasing almost daily now — as last holdouts in TV set field climb aboard bandwagon. One key is contained in statement by RCA Pres. Elmer W. Engstrom in RCA management team report Jan. 24 to N.Y. Society of Security Analysts : “Color TV receivers and color picture tubes were the greatest profit contributors of any RCA products in 1962.” Among other developments in fast-accelerating color story: (1) Philco confirmed that it will begin its own manufacture of color sets this spring, aiming at 300-400% increase in its share of that market. Vp-gen. mgr. Larry H. Hyde conceded that patent suit settlement with RCA (Vol. 3:1 p7) helped make possible Philco’s entry, but wasn’t responsible for decision. He said color sets would incorporate some important Philco-patented advances. It’s understood that Philco will earmark about $1 million to prepare for color set manufacture. (2) Canadian set makers pushed hard for color broadcasting start in hearing before Board of Broadcast Governors, while the 2 networks — CBC & CTV — sought further study and continuance of ban on colorcasting. RCA Victor (Montreal), now producing color sets for sale in areas where U.S. colorcasts are available, and Dominion Electrohone urged BBG to lift colorcasting restrictions, while Canadian Marconi asked that moratorium be con tinued. EIA of Canada recommended over-all plan to begin colorcasting at specific date. (3) Private label begins to loom as important field for color — with Wells-Gardner, TraVler & Muntz all planning early entry, and such key accounts as Montgomery Ward, Western Auto & W. T. Grant placing orders (see story, p. 8). (4) Importer Delmonico International, which showed 14 & 17-in. Japanese color sets at recent Chicago marts (Vol. 3:1 p9) is talking of importing $10 million worth of color sets beginning next June. (5) Magna vox, hardly the most rabid color enthusiast in the past, concedes its 1962 color sales were above expectations, now plans to start producing own chassis next month. (6) CBS-TV got another color sponsor — Campbell’s Soups deciding to run Lassie in color for 4 or 5 weeks beginning Feb. 17. Network had previously announced its Feb. 17 Tour of Monaco, sponsored by Ford & Chemstrand, would be colorcast (Vol. 2:50 p4). (7) RCA group exec, vp W. Walter Watts at week’s end estimated 1962 color TV retail sales at “close to 450,000.” At N.Y. Security Analysts’ dinner, he explained his previous estimate that market could absorb 750,000-1 million color sets this year: “This is a projection of 1962’s curve. It also represents our production limitations, particularly in the picture tube area. If I can believe the preliminary indications from our tube customers, I think one million is a pretty good bet. The question is — will they take them, and can we deliver them?” American manufacturers used \2'/o more loudspeakers during first 11 months of 1962 than they did in same 1961 period, according to Hawley Products Co., St. Charles, 111. manufacturer of speaker cones. Total rose to 40,868,592 from preceding year’s 36,497,425. Increase was in oval speakers and in round speakers under 8-in.; tweeters and 8-in.-&-over categories declined on year-to-year basis. Hawley Products has also released list of “Laboratory Equipment Necessary for Making Adequate Loudspeaker Measurements,” as proposed recently by General Radio Co. Total cost comes to $19,335. lEW has offered to help RCA get govt, contracts. Noting that some 3,000 of its members have been furloughed at RCA’s Camden, N.J. defense plants, union proposes a joint committee to study means for obtaining additional govt, business. RCA said proposal is “being studied by top management.” Union emphasized that joint committee would devote itself exclusively to question of attracting new defense contracts. Sales of electron tubes for broadcast, industrial & military equipment in 1963 will climb 10% to record $350 million, G. W. Duckworth, RCA industrial tube products mktg. mgr., predicted. Tube Div. vp-gen. mgr. D. Y. Smith said RCA tube sales in 1962 rose 20% over 1961 volume to record high, noted division “currently has annual sales in nine figures.” Reports & comments: MGM, comment, Bruns, Nordeman & Co., 52 Wall St., N.Y. 5 • National Tel-Tronics, memo, Edward F. Henderson & Co., 15 William St., N.Y. 4 • RCA, review, Paine, Webber, Jackson & Curtis, 25 Broad St., N.Y. 4. Private-label color TV is being marketed in 25 largest W. T. Grant stores which handle other consumer electronic products & major appliances. Sold under Grant’s “Bradford” label, set is made by Wells-Gardner and is priced at $569 in walnut contemporary console cabinet. Local service dealers are retained for $70 one-year sersice contract, sold with set. The 1,031-store chain sells TV in its larger outlets, will expand color line and number of stores handling color if experience in the 25 stores is good. Color sets went Cut-rate promotions on low-end transistor radios & tape recorders abounded at recent Independent Housewares Show in Chicago, according to Home Furnishings Daily, a trade publication for retailers. The publication reports retailers were offered 6-transistor radios as low as $5.75, 4-transistor recorders at $8, although there also seemed to be more emphasis on quality items than formerly. Magnavox has developed electronic system, the MagnaMiler, which signals drivers when tire pressure slips below recommended levels. Intended primarily for trucks & buses, Magna-Miler embraces battery-powered transmitter on each wheel which is actuated by pressure switch on tire valve stem. Falling pressure closes electronic circuit, causes transmitter to send signal which triggers warning light or buzzer on dashboard. Sylvania has slated “intensive” first-quarter ad program to support offer of free bowling ball to purchasers of HaloVision TVs (Vol. 2:52 p9). Program embraces TV’^ spots throughout Jan., on ABC-TV’s Pro Bowlers Tournament; daily “saturation radio spots” in key marketing areas through 2nd week in March.