Weekly television digest (Jan-Dec 1963)

NEW SERIES VOL. 3, No. 46 TELEVISION DIGEST-7 MANUFACTURING, DISTRIBUTION, FINANCE HOTEL TV ENTERS ’REFURBISHING ERA*: Faced with slowdown in hotel -motel construction this year, and possibility of almost complete halt in 1964, TV suppliers nonetheless look optimistically to next year for continuation of this year's banner business. Key word for '64 is "refurbish." As one TV man put it: "Many hotels and motels will have their choice next year— refurbish or close." Very few will even hazard guess as to size of hotel-motel TV market. There's some indication it may run to about 250,000 sets annually. This business is split among entire TV receiver industry— but concentrated in those manufacturers which make special hotel -motel models— including RCA, GE, Westinghouse, Philco, Zenith, Magnavox, Motorola, Emerson & Admiral. Pattern of set distribution varies widely. For example, at last week's National Hotel & Motel Exposition in N. Y. , these exhibitors displayed TV sets: Wells TV, Electronics Leasing Corp. & American Communications Corp. , which handle various TV brands in connection with their institutional sale & leasing programs; RCA Service Corp. , Westinghouse Commercial -Institutional Products & Philco Telesoimd Dept. , which sell & lease direct; Zenith, which deals through its local set distributors; GE, which deals through local distributors & specialty leasing outfits; Magnavox & Motorola, through various hotel suppliers. Although most looked forward to good 1964, there was plenty of blues-crying, too. One of biggest complaints was declining prices. TV sets generally are installed in hotel or motel on 5 -year lease or 5-year conditional sale basis— both plans being roughly similar. Suppliers say prices this year, including master antenna, installation & service contract, are down about per set per day. One supplier said his average 19-in. installation now runs about 13^ per set per day (1^^ higher west of Chicago), down from a little over 14^ last year (Vol. 2:47 p7), while another estimated industry-wide average for 50-room inn now running 15-15. 5^. Hotel TV suppliers are bitter & angry over FCC's all-channel set rules, which they call senseless & ridiculous as applied to them. They point out that all big hotel-motel TV installations are on master antenna systems, and no available system will amplify & distribute uhf signals. (Traditionally, uhf signals are converted & fed to vhf channels on master systems. ) In addition, they point out that life of TV set in hotel-motel use is calculated at 5 years (for tax purposes), while all-channel legislation is based on 10-year obsolescence cycle of home TV sets. All-channel ruling will cause price increase, they say, although uhf tuner in hotel set will be completely useless. Suppliers are predicting that TV manufacturers will stockpile enough vhf -only hotel -type sets to meet their 1964 requirements without price increases, in hope that 1965 will see solution to their particular all-channel problem. But all is not gloom in hotel -motel. Intense competition for guests in nation's overbuilt inns will benefit TV industry, many believe, forcing innkeepers to install better & more elaborate sets. Most suppliers see wired remote control as hottest thing to come down pike in long time. Originally developed for hospital TV, it's now being built into headboards & night tables, sometimes combined with message center or radio system. There's unquestionably increased interest in remote TV, and greater purchases. Color is continuing its slow increase in share of nation's inn business, and for first time there seems to be substantial business for guest rooms (as opposed to public rooms) —depending, of course, on which supplier is talking. RCA Service Co. says it has no big hotel jobs without some color. Adds multiple sales & leasing mgr. W.R. Seuren: "The older hotels are going to it now. First it was public rooms, then suites, and now it's getting to the high-priced room areas." Lush Las Vegas is looking more colorful these days. Philco' s Telesound has equipped new 60unit Embassy Apartment Hotel there with color in every room, supplied 30 sets to Sahara hotel for its "executive suites," while all other Sahara rooms were equipped with remote -control b&w. Amer