Weekly television digest (Jan-Dec 1963)

8-TELEVISION DIGEST OCTOBER 21, 1963 duce like mad and stockpile vhf-only sets against U-Day. As one put it: "We couldn’t stockpile now if we wanted to; we can sell all the sets we can possibly make right now. " * * * * Question has been raised, again, about applicability of all -channel law to sets sold solely within state in which they’re made. There’s been some speculation that these are "intrastate" rather than "interstate"— thus exempt from the law. FCC Comr. Lee has given his initial view that all sets are covered by law (including, incidentally, all imports), but Commission’s general counsel is studying subject, expects to give opinion in couple weeks. Lee tells us he’s discussed matter with "6 of the 8 or 9 largest set makers" and "none of them is going to cheat. ’’ Question arose during legislative discussion of bill before passage, and Commission told Congress problem is insignificant because manufacturers reported that it’s impractical to make 2 kinds of sets— vhf-only and all -channel. Commission says it has no indication anyone plans to challenge constitutionality of law, that it has had no queries about it from Congress or set makers. BEST TV SALES MONTH IN 7 YEARS: There’s only one way to say it: September was a helluva j month in TV. ' Not counting color sets. . . not counting 11-in. sets. . . not covmting imports— preliminary estimates | indicate that more TV sets were sold to dealers in Sept. 1963 than in any Sept, since 1956, more than in any month at all since Dec. 1956. This means consumers are buying— since dealers this year are playing it very close to the chest, selling almost directly from distributor warehouses. Sept, distributor -to -dealer sales are estimated to have totaled about 794, 100 sets, 8. 6% above the very good 731, 100 registered in Sept. 1962. In EIA statistics. Sept, traditionally is best distributor-to-dealer month of year. (EIA’s statistical month of Sept. , on which these estimates are based, has 5 weeks, as does the final month of each quarter. ) Thus 9 -month TV sales to dealers totaled about 4, 749, 000 sets, 7. 4% above the 4, 423, 117 of same 1962 period. This adds more substance to our prediction a month ago that record TV sales are |l likely this year, when you include color, 11-in. & imports (Vol. 3:38 pll). ; Sept. TV results, incidentally, appear to confirm GE’s claim that 11 -in. sales are principally plus business. Since the sales figures don’t include tin5rvision, it’s safe to conclude that wee TV didn’t i cut into sales of standard sizes very much in Sept. Total black-& -white TV inventories at factory & distributor levels were down 10% at end of Sept. , as compared with year earlier. If good business keeps up (actually, some manufacturers report signs of leveling-off in Oct.), reserve stocks might be a little too low for comfort. Radio business continues to lag 1962, domestic sales to dealers for Sept, totaling about 1, 121,000 sets, or 10.7% lower than the 1,255,346 of Sept. 1962. For year’s first 9 months, radio sales were 6,604,000, drop of 15. 6% from comparable 1962 figure of 7,825,890. Radio inventories were down about 9% at end of Sept, from year -before figure. Phono sales continued excellent in Aug. , according to latest available unofficial figures. Very i few in industry expected Aug. sales to exceed Aug. 1962’s record-breaking total of 416, 788 units sold ■ to dealers (which was 30% above Aug. 1961 figure)— and they didn’t— but at 407,000 they came within 2. 5%. Phono distributor sales for the 8 months were unofficially placed at 2,466, 000 or 15. 3% above similar 1962 period. Phono factory sales for Aug. totaled some 426, 500, down 3 . 4% from Aug. 1962’s; 441,455 and 8-month factory sales were estimated at 2, 657, 800, running 14. 5% ahead of 1962. ELECTRONIC PARTS DISTRIBUTORS IN SQUEEZE? Industry’s 1,787 electronic parts distributors I topped $1 billion in sales last year for first time (Vol. 3:22 p9) and kept right on increasing volume through 1963’s first half, according to our latest analysis. Profit story, however, is less than cheerful. Signs of major profit squeeze, indicated in our study earlier this year (Vol. 3:19 p8), have now developed into pronounced trend, using as criteria j