Weekly television digest (Jan-Dec 1963)

8-TELEVISION DIGEST OCTOBER 28, 1963 IMPORTED TV PRICES— GOING DOWN? There*s feeling among American set makers— not shared by importers— that one effect of UoS.-made 11-in. sets will be to force prices of imports further down. Some American manufacturers fear possible Japanese dumping next year. But importers look at it other way around— they say American tinyvision is helping call public attention to brand new product field which is completely imsaturated, with beneficial effects on sales of small imports. Effects of U. S. tinyvision on imports so far are disputed. One large American set manufacturer— which doesn’t make tinyvision but is studying field carefully— says its retail reports indicate that ’’higher-priced Japanese sets are being clobbered” all of a sudden, presumably by American-made 11-in. product. He predicted Japanese response would be lower prices, but probably after Christmas. Au contraire, say importers, promotion of ’’personal portable” is broadening market for wee TV. Spokesman for Sony, which claims 80% of all miniature TV sales in U. S. , says there's been no slowdown in sales— in fact, ’’the 11-in. set is helping our sales.” He explained, however, that Sony will continue to concentrate on ’’the quality market, the sophisticated market.” While ’’other small sets are helping to sell ours,” he said he feels Sony's battery operation and portability are biggest selling points. "Over a period of time, more than 50% of our customers buy batteries for their sets.” Sony has no plans to go into the AC -only portable TV field, he added. Sales Dir. Herman Marsen of Sharp Electronics (Hayakawa) expressed similar view on impact of U. S.-made tinyvision. ’’We're still in a back-order position on our battery sets,” he told us. ”If the GE set is cutting in, it will take us some time to find out. But I would say it's helping to increase the market for small-screen sets. GE's 16-in. set helped a great deal in making a market for our set of the same size. ’’Actually, GE went into the small -set market after the Japanese had explored it. We think this ^ will widen the sales potential. The large-screen market is saturated. It's tough and fiercely competi ^ tive. The small-screen market is a brand new one, and I think it's the best one for the dealer to explore. There's room for everybody in this new 2nd, 3rd & 4th-set market.” GE TV Receiver Marketing Mgr. Marshall Bartlett could shed little light on question. ”We haven't been following the retail sales of Japanese sets,” he told us, ”so we really don't Imow.” One large TV manufacturer told us his investigation indicated "the bloom is off' the 11 -in. set, that retail sales seem to be leveling off— at least temporarily— after initial surge. Asked to comment, Bartlett said: ”We don't see anything in our retail figures that would alter our opinion— this is a very broad market.” He also said it was too early to tell what distribution pattern is emerging on 11-in. set, with regard to sales by type of outlet, etc. As to sales mix between $99.95 model & step-ups, he said: ’’Since we are still allocating sets, any figures we could derive would have little meaning.” Admiral, only other current U. S. maker of 11 -in. sets, is also still in back-order position. | Whether advent of U. S.-made tinyvision will result in increase or decrease of imports, there's no question that U. S. manufacturers are looking at possibility of importing small-screen sets as a j means of keeping themselves covered in tinyvision market. Sears Roebuck is test-marketing its 10in. Toshiba-built import (Vol. 3:29 plO) in selected retail outlets at $89.95. Westinghouse is exploring possible import of 12 -in. set, believed to be made by Mitsubishi. It's probable that other deals are in incubation stage. HERTZ READIES NEW TV RENTAL PROGRAM: Bigger bite of booming product rental business, including TVs, is anticipated by Hertz Corp.'s expanding RentAll Div. with new display-& -rent technique slated for introduction in N. Y. market within 3-6 months. Plan currently is undergoing test in Tampa market, has produced highly encouraging results. Plan calls for establishment of network of in-store displays in all types of retail outlets throughout city. ”It could be a drug store, a department store, any quality retail store.” Each display is connected by direct phone to nearest Hertz Rent -All outlet, uses panel of color transparencies of products to attract traffic, is complete with 2 catalogs of products available for rent— one general product catalog, the other devoted to sick room needs. Store installing display is paid a straight percentage of the volume generated by the unit. Hertz would not reveal percentage figure, said there were no other fees for the floor space. Hertz described program as "variation of our call-a-car stations in aif & train terminals,” said