Weekly television digest (Jan-Dec 1963)

NEW SERIES VOL. 3, No. 52 TELEVISION DIGEST-7 • • MANUFACTURING, DISTRIBUTION, FINANCE 1064' S BIGGEST PROBLEMS— UHF, PROFITS, IMPORTS: Asked to name most pressing problem for 1964, most industry leaders cite transition to all-channel TV— but only by narrow margin. Close runners-up are maintenance of fair profit structure for dealers and/or manufacturers, and impact of imports. In our recent survey of industry's topkicks, we asked them what was biggest problem for new year. All-channel law was cited 5 times, fair profits 4 times, imports 3. In addition, effect of tinyvision on prices, & consumer education on need for high color TV prices (as compared with b&w) were cited once each. Here's rundown on some specific comments: Citing allchannel problems, Admiral sales vp Ross D. Siragusa Jr. says there probably will be "period of confusion" before public & dealers are completely educated to significance of change. Packard Bell Pres. Robert S. Bell expresses apprehension that "certain segments of industry might build a large vhf inventory prior to April 30 and thereby cause a chaotic market condition." In addition, he says consumer doesn't understand "the virtue of having a uhf tuner in his set which he cannot use in most areas. The usual result in past industry history, when the customers were confused, was that sales have dropped temporarily." Bell proposes "a vigorous campaign by the broadcasting industry— which was largely responsible [for] permittir^ this law to be passed." Manufacturers can't do it alone, he adds, "without the benefit of a huge war chest." Others who see all-channel changeover as one of industry's biggest problems were Motorola Consumer Products Pres. Edward R. Taylor and Zenith Operations Vp Clifford J. Hunt. "The biggest problem in 1964," writes Emerson Pres. Benjamin Abrams, "will be the maintenance of a pricing structure to make possible a fair margin of profit at all levels." Olympic Pres. Morris Sobin puts challenge of '64 this way: "Making a profit in the face of severe competition among members of industry, coupled with trying to hold price line in face of higher costs due to uhf, labor & material increases." "Dealer's profit problem" is called "most serious underlying problem in the industry" by SylvaniaHome& Commercial Electronics Pres. Robert J. Theis. He attributes this largely to overfranchising, and suggests that while "action & leadership" must come from industry leaders, dealers can help in 2 ways: (1) Concentrate on fewer lines "to avoid this overcrowding which creates too much same-brand competition." (2) State their intentions to suppliers "as to what they can expect in the way of volume & cooperation. . . They should be ready to back up their intentions by proving ' (at the end of the year) that they did the kind of a job they said they would do for their suppliers." Wells-Gardner Sales Vp Allan Gardner listed "deriving profit from domesticmanufactured items" as one of 2 major problems. "Tinyvision and its effect on TV prices in general" is biggest problem, I as seen by Philco Consumer Products Div. Vp-Gen. Mgr. Larry H. Hyde. Imports represent biggest challenge, in view of RCA Sales Corp. Pres. Raymond W. Saxon. ! Pointing out that radio imports have now reached same rate as domestic production, he adds: "In I TV, imports have begun to seriously establish themselves in the lower -priced portable areas. It I remains to be seen whether domestic TV manufacturers can profitably compete with imported prodI ucts in this particular category without the benefit of technological breakthroughs in the TV product I itself. Phonographs are another area that could see increased foreign competition in 1964, particuI larly in the lower-priced portable field." Motorola's Ed Taylor says "major task" for industry in '64 will be "holding its own against imports in TV, so that imports do not rock the TV boat as they have in radio." Wells-Gardner' s Allan Gardner defines "meeting competition from foreign manufacturers" as one of 2 major problems. SetchellCarlson Pres. B. T. Setchell thinks pressing issue will be "educating the consumers that color TV is not and cannot be in the same category with b&w TV."