Television Digest 1963 04
Television Digest 1963 04
LIFE WITH COLLINS-THE PORTENTS: NAB Pres. LeRoy Collins won vote of confidence from NAB
board in Jan., when it gave him new 3 -year contract. Board believes Collins is right for the job. Now, NAB
members meeting in Chicago convention this week, will again assess him themselves. For future, here's what
you may expect, as summarized by those who know him best :
Collins will emphasize, more than ever, need for broadcasters to become "masters of their own
house." He'll continue trying to get public to shift gaze from govt. and look to industry for self -regulation.
"Don't be so preoccupied with your private interests," he says, "that you leave the public interest to the govt."
A skeptic about program ratings from the day he took office, he'll again stress that NAB is vehicle for
restoring confidence in this area-after the bludgeoning dealt by Harris Subcommittee-through his carefully
nurtured research projects.
A new NAB Program Dept. will be created, as authorized by board. Collins considers it astonishing
that NAB offers only minor help to broadcasters in basic job-producing their product.
Collins intends to fight "increasing tendency of FCC to take broad actions affecting the whole indus-
try, when sanctions axe indicated for only a few."
"Advertiser pressures" continue to bother Collins, and he seeks means for reducing them.
2-TELEVISION DIGEST APRIL I. I9E3
Collins commands remarkable degree of respect & confidence of Congress & Administration-and
broadcasters are convinced his leadership will eventually crack ban on broadcasts in House, ease restraints
on political broadcasts, stave off harsh legislation in many areas.
FCC'S C'%NIE THOM GOODHES--COR MERCIALS a FEES: Obviously designed to give NAB con-
std
ventioneers something to talk about, FCC punched out 2 hot ones: (1) Started a proceeding looking toward
clamping ceiling on commercial time. (2) Voted license fees in a next -to -final action (instructions to staff).
Vote on commercial strictures, not made public, was 4-3, we learned: Minow, Cox, Henry & Lee vs.
Hyde, Bartley & Ford. It's first fruit of Cox's replacement of Craven, who was dead set against such action.
License -fee vote was 5-0 or 5-2, depending on how you read it-because Bartley & Ford abstained.
Lee was the man who pushed commercial -ceiling originally, proposing that FCC simply adopt NAB
Codes as part of its regular rules, thus giving them teeth. Lee is to debate the subject at NAB convention, op-
posed by Code Board Chmn. William Pabst, KTVU San Francisco-Oakland. Clearly, one reason FCC acted
right now was to give Lee support as he enters ring.
Text of FCC's proposal won't be out for couple of weeks, but it's understood discussion will include
such things as: (1) Many stations don't belong to NAB Codes, and some operators who belong aren't meticu-
lous about following them. (2) Excessive commercialization is one of largest areas of complaints received.
Commission said it isn't limiting consideration to NAB Codes. It said it wants all kinds of alternatives,
maybe special provisions for stations which, "because of their location in sparsely populated areas or other
factors, might not be able to observe the limitations contained in the NAB Codes and at the same time main-
tain operation in the public interest."
NAB Pres. Collins isalready strongly on record as opposing FCC enforcement of Codes-so he now
has delightful opening. Said he: "We have seen this coming for some time, and as I have made clear before,
the NAB will oppose this proposal with its maximum capacity and calls for the support of all broadcasters."
FCC had already irked industry substantially with its inquiry on loud commercials. Comments
filed last week, by such experienced organizations as ABC, CBS, NAB & Storer, stressed that "loudness"
is largely subjective & psychological, not subject to simple control by instruments and FCC rules. They point
out that complaints are few, and some maintain that FCC intervention may be infringement of freedom of
speech.
License -fee vote included substantial reduction from original proposals for broadcasters. For major
TV applications, it was cut from $250 to $100; for AM & FM, from $150 to $50. There were minor changes in
non -broadcast field. If finalized as expected, rules will go into effect next Jan. 1. FCC is believed to be first
regulatory agency to vote fees-other than those required to do so by specific laws directed at them, such as
SEC. Congress long ago told FCC & similar agencies to work toward charging fees, but Congress itself has
been shy about pushing the matter.
And people were saying NAB conventions are getting dull.
VHFDROP -INS NOT DE ''- D: Don't write off short -spaced vhf drop -ins. Though FCC voted 4-3 recently
(Vol. 3:10 p2), instructing staff to write final decision rejecting drop-ins, we've learned there's something more
than remote possibility of reversal.
Comr. Ford, particularly, remains hot for drop -ins. New Comr. Cox is of similar bent. Cox replaced
Craven, who also voted for drop -ins, so prospective vote doesn't change in that switch.
But key man seems to be Chmn. Minow. In discussion preceding last 4-3 vote, Minow advanced com-
promise: Insert drop -ins; require grantees to operate both vhf & uhf for specified period, such as 3 or 6 years,
then make them drop vhf. His colleagues didn't quite buy that. But word around FCC is that Minow would
still welcome a workable compromise. He has 2 goals : short-term & long-term. First is to improve network
competition, giving ABC outlets in substantial markets; second is to bolster uhf for widespread future growth.
There are 7 markets involved now : Johnstown, Baton Rouge, Dayton, Jacksonville, Birmingham, Knox-
ville, Charlotte. But some pro-drop -in forces at FCC wouldn't stop there. Some would go for squeezing 3rd
NEW SERIES VOL. 3, No. 13 TELEVISION DIGEST -3
vhf into more markets in top 100-reducing spacings below recently contemplated minima of 120 miles co -
channel, 40 miles adjacent -channel. Here are some of markets mentioned, though chance of action on these
is undoubtedly much slimmer: Toledo, Hartford -New Haven, Lansing -Jackson -Parma -Onondaga, Saginaw -Bay
City -Flint, Terre Haute, Jackson, Miss., Raleigh -Durham, Wheeling -Steubenville, Quincy -Hannibal, Green-
ville -Washington, N. C.
TRAVAILS OF NIELSEN (CONT'D): Nielsen's $7 -million-yearly program rating operation took brutal
pounding again last week, as House rating hearings went through 4th week-this one devoted entirely to
the big Chicago firm.
There's no question that Nielsen-dominant in national TV-radio ratings, with 90% of the business-
is in trouble. Seriousness of trouble is yet to be determined; Nielsen witnesses again take stand today
(April 1) while its field men and some advertisers may also be called. In addition, Harris Subcommittee
said, it may call Chmn. A. C. Nielsen Sr. or Pres. A. C. Nielsen Jr. (both overseas)-if other witnesses aren't
sufficiently familiar with statements made by Nielsen Sr. in certain unidentified court cases, etc.
Nielsen was in trouble all week-though much time was consumed with dull technical explanations
which exasperated Subcommittee members. But climax came when it was revealed that Warren Cordell,
vp & chief statistical officer, had discussed "vital weaknesses" of Nielsen ratings in confidential memo to
Nielsen Sr. Memo said "we preferred" that govt. investigators not learn of these until they were corrected.
Subcommittee was shocked. Cordell defend memo, said it was plea to get more staff, and that
he succeeded in this. He also said weaknesses discussed in memo had already been brought out in hear-
ings: (1) Need to update national sample of 1,100-1,200 homes to conform to 1960 Census. (2) Need to in-
crease sample size in local radio markets. (3) Difficulties in estimating transistor & auto radio listening.
Subcommittee indicated that it thought memo contained additional weaknesses. It's understood Nielsen
may make contents public.
Among other disclosures, in which Nielsen ultimately concurred, was that company uses "weighting"
factors from national reports to adjust sets -in -use levels in local reports. Henry Rahmel, exec. vp & media
research div. mgr., said such factors are not applied to audience shares for each station.
It was also charged that actual sample size couldn't be determined in Nielsen report. In March
1962 Louisville report, sample was specified as 205. Evidence showed that average sample for week in
study was really 123. Rahmel said change was made recently to list actual useable sample. Rep. Moss
(D -Cal.) also asserted that Nielsen's failure to reflect true sample size would be called "false labeling" in
any other industry.
Subcommittee counsel Robert Richardson questioned Nielsen's claim that tuning is same as viewing
or listening. He said records produced from 9 of 11 Louisville Audimeters showed some sets tuned con-
tinuously for 24 and more hours-in one case to a station off air. In another case, receiver was on for 3
days. Rahmel insisted this isn't representative.
Louisville was market picked to study all ratings firms' local services, Richardson said. Moss
added: "It would appear that everyone who measures Louisville seems to have problems." "How typical
are they?" he kept asking, referring to viewers surveyed.
On reliance of viewer entries in diaries, Richardson produced sample notations: "Turned TV on
this morning so baby could watch it. I had too much to do today because I had to go away for a while."
Also: "Set left on; no one watching." Subcommittee also maintained that Nielsen had to make some diary
entries.
At end of last week's testimony, Special Investigations Subcommittee talked tough, mentioned
need for regulation. If anyone is still taking subcommittee action lightly, consider: Every major research
firm we have spoken to has already considered chcmges. ARB hopes to increase sample sizes and to learn
more about human errors in diary fulfillment. Pulse seeks more control over field interviewers and more
adequate labeling in reports.
Nielsen had made some chcmges before hearings began, and supplied Subcommittee with sug-
gestions for industry improvement on 2nd day of testimony (Vol. 3:12 pl).
4-TELEVISION DIGEST APRIL 1, 1963
Nielsen has $40 million gross, TV -radio accounting for 18%, $7.2 million, while 2nd -place ARB
bills slightly above $3 million, mostly local reports.
Complicated nature of ratings and the special language of statisticians evoked comments such as
these: Chmn. Harris (D -Ark.), referring to confusing Nielsen testimony: "We'll get square roots operating
with Univac and then get some answers." Rep. Younger (R-Cal.), "I've never seen anyone who sells con-
fusion as you do and get so much money for it." Richardson: "Most people who deal with you don't know
what you do." Cordell: "I'm trying desperately to tell the truth." Rahmel: "It's a highly fallible tool."
Younger, referring to sets tuned in all night: "Would advertisers pay any money for people who go to
sleep?" Moss: "Mud would have far more transparency."
Counsel Richardson, it's understood, is due to speak to Radio-TV Research Council in N.Y. April 3
(for N.Y. reactions to hearings, see below).
N.Y. WARY ON RATINGS: Networks, agencies & ad- Quickening pace of applications: In Boston, 4 appli-
vertisers are rather guarded in discussing their cants have filed to contest renewal of WHDH-TV (Ch. 5).
FCC opened Ch. 5 to new contenders after holding against
reactions to Washington program -rating hear- WHDH-TV in "influence" case. Boston applicants include:
ings, but it's evident they're beginning to see Charles River Civic TV, headed by a Cabot (Thomas D.),
changes on horizon. which plans to give profits to "broad educational & other
Agencies generally felt that ratings probe would cause philanthropic purposes"-probably first of its kind-and
some changes in their own way of TV life (less stress on which offers to WHDH-TV up to $5 million for facilities,
ratings & cpm's to clients; more stress on "showmanship contracts, good will, etc.; Greater Boston TV, an original
values"). contestant with WHDH; Boston Bcstrs. Inc., headed by
Media head of large agency billing over $130 million audio engineer Leo Beranek and ex -FCC attorney Nathan
annually asked not to be named but told us: "The hearings David; Hub Bcstg. Co., headed by William A. Bernat, uni-
have pointed up need for more independent industry con- dentified in incomplete application. Also in Boston, United
trol of rating research rather than a need for govt. con- Artists filed for Ch. 44, as did Integrated Communications
trol. It's an industry problem and industry responsibility. Systems, latter headed by Leonard Sait, ex -National Tele-
film Assoc. UA also filed for Ch. 23, Houston, and Ch. 65,
NAB, 4A's and other broadcast groups should do some-
thing to set up an independent agency to check on rating Cleveland, while KTVB Boise seeks Ch. 13, LaGrande, Ore.
accuracy." as satellite. In Cleveland, Ch. 19 is sought by Community
Telecasters, headed by attorney Charles W. Steadman.
Added TV -radio media chief of one of the P&G agen- (For full details of foregoing and other FCC TV activity,
cies: "We know most lirhitations of ratings and find them see TV Addenda 33-H, herewith, to full -service sub-
acceptable as yardsticks; there'll be no immediate change scribers. For details of AM & FM activity at FCC, see
in our internal practices. However, there'll probably be weekly AM -FM Addenda.)
less emphasis by TV salesmen on small differences in
ratings." Our son, Lee, the fun -clinger: FCC Comr. Lee, Com-
Networks were playing it cozy on ratings questions, mission's clown prince, has been in rare form. In recent
but some minor policy shifts could be seen already. Back- FCC meetings, we hear: (1) He asked fellow Chicagoan
stage memo at NBC-TV to promotion & publicity staffers Chmn. Newton Minow, rumored resigning, about plans for
warned them not to crow about future ratings successes travel to NAB convention, "Hey, Newt, getting a round-
in public, suggested they push "critical acclaim" instead. trip ticket?" (2) Comr. Hyde, discussing broadcasting
ABC-TV, whose current national Nielsens are not spec- traffic -court proceedings, said, "If one of my colleagues
tacular, almost seemed to welcome doubts on ratings were arrested for drunken driving, that would be news."
validity cast by hearings. CBS -TV, which landed 9 shows Lee: "Only if it's Hyde." Hyde is Mormon, notorious
teetotaler.
fact late last week -
in latest Nielsen national "Top 10," was still pushing this
but its executives were also calling
attention to fact that CBS measures values of public -
Two-party harmony: In rare, if not unique, state-
ments, GOP Sens. Scott (Pa.) & Cotton (N.H.) praised
affairs programming "in other -than -ratings terms." Democrat Chmn. Magnuson (Wash.) of Commerce Com-
New RAB Pres. Edmund C. Bunker took swipe at mittee for saving money. At end of 87th Congress, Mag-
ratings in N.Y. during March 27 IRTS speech, pointing to nuson turned back $65,000 of funds allocated to his
"a major research firm" whose contrite apologies for Committee: Said Cotton: "He has always leaned over
errors "cannot replace millions of dollars which have been backwards, sometimes I thought he leaned over too far
lost to our medium." backwards-not to spend money unnecessarily." Scott:
Some ratings fireworks may go off in N.Y. next week. "I have never served on a Committee where the chairman
Subcommittee's star prober, Robert Richardson, has been was more careful with the public funds."
quietly pencilled -in for address before members of Radio- KHAS-TV Hastings -Kearney, Neb. names Venard,
TV Research Council on April 3 at Hotel Lexington. Pub- Torbet & McConnell rep. WMAL-TV Washington appointed
lic, press & non-members are not invited. Harrington, Righter & Parsons.
NEW SERIES VOL. 3, No. 13
TELEVISION DIGEST -5
COX, ON 'LOCAL LIVE': About 4 hours after taking UHF Studies & Aids: Third technical report on FCC's
N.Y. uhf project was released last week, also was de-
oath as FCC commissioner March 26, Kenneth A. livered as paper by Commission's George V. Waldo at
Cox told Washington lawyers that a station's IEEE convention in N.Y.
"attention to local live programming is essential." Report covers measurements with portable receivers
No pussy -footer he-picking one of most contro- & antennas at some 4,000 locations within 25 miles of
versial issues on hand. transmitter. Net conclusion is as with preceding Deitz
He told Federal Communications Bar Assn. luncheon study of fixed installations within 25 miles: With outdoor
in his honor that since 1950 there have been 2 basic FCC antennas, uhf is about as good as vhf; with indoor, it's
policies on matter: (1) Schedule of priorities in TV alloca- somewhat less effective.
tions was to facilitate creation of local stations with at Last week, also, Commission finalized several technical
least one TV signal for as many people as possible. (2) changes to ease costs of uhf stations-particularly small
Program policy statement of July 1960 that programming outlets. FCC will now permit: (1) Remote -control trans-
is essence of local TV service. mitter operation. (2) A 10-1 visual -aural power ratio.
If the FCC thought otherwise on local issue, it would (3) Operation without reduction of lower sideband radi-
have made allocations job easier, Comr. Cox said. Com- ation, for transmitters of 1 kw or less. (4) Unrestricted
mission could have simply established "wide coverage DAs for under -1 -kw transmitters, DAs up to maximum -
stations," he appended. minimum of 15 db for over -1 -kw transmitters. (Vhf con-
tinues with 10 -db limit.)
He pointed to reent study that showed 448 affiliated
TV stations carried local live programming average of Knotty Ch. 37 problem, involving band sought by radio
8.9% of time they were on air; 50 stations of these aired astronomy, was tackled by FCC with following proposed
local live more than 15% of time. rule, comments due May 1: (1) No Ch. 37 stations allowed
within 600 miles of Danville, Ill. (U. of Ill.) until Jan. 1,
He defended FCC program inquiries at local level,
1968. (2) Make no Ch. 37 grants in U.S. until this rule -
although he noted that some stations seem "sensitive" making is concluded. (3) Allow no Ch. 37 station oper-
about them. Chicago hearings were "very useful," he said, ation midnight -7 a.m.
adding they turned up important issues regarding local
religious & entertainment programming, plus questions of 0
local autonomy at the 3 network-owned stations.
CBS Inc. officers' 1962 remuneration (including salary
Omaha hearings-where "people are somewhat more & additional compensation) and stock ownership, as listed
sensitive than in Chicago"-are still being studied by FCC in proxy statement to shareholders: Chmn. William S.
and report will be issued soon, he stated. Paley, $188,750 plus $11,250 deferred compensation (owns
Revision of FCC program form is essential, Comr. Cox 944,877 shares); Pres. Frank Stanton, $188,750 plus
asserted. Failure of present form to show information $11,250 deferred (166,386 shares); CBS -TV Network Pres.
adequately, he stated, led to deferrment of 70 TV license James T. Aubrey Jr., $160,000 (10 shares); CBS TV Sta-
renewals because of paucity of local live shows 6-11 p.m. tions Pres. Merle S. Jones, $125,000 plus $25,000 deferred
(Vol. 3:11 p3). (2,690 shares); CBS Radio Pres. Arthur Hull Hayes,
He conceded that non -local programming may be $85,000 plus $10,000 deferred (7,208 shares); CBS News
applicable to local problems, but that ultimately there is Pres. Richard S. Salant, $82,500 plus $7,500 deferred (119
need for "locally -originated discussions." shares) ; Columbia Records Pres. Goddard Lieberson,
$72,500 plus $37,500 deferred (9,135 shares).
Cox was sworn in by Supreme Court Justice Douglas, Change in emergency broadcast system from use of
who had administered oath to Chmn. Minow. Justice 640 & 1240 kc to normal frequency assignments has been
Douglas cracked: "About 2 years ago, I was in this room, recommended to FCC. Standard stations presently holding
swearing in Chmn. Minow. Heavens knows when I'll be national defense emergency authorization would operate
back." on normal frequency with normal power without station
As Coy: moved up. James B. Sheridan was formally identifications, according to interim report by National In-
appointed to succeed Cox as chief of Broadcast Bureau, dustry Advisory Committee Working Group. Stations
as we first disclosed in Jan. (Vol. 3:3 p2). Economist would carry common program for their community or
Sheridan shifts from special asst. to Chmn. Minow, who area. All other AMs would leave air. Programming pri-
said: "Mr. Sheridan enjoys the confidence of all of the orities same as present: Presidential messages, local pro-
commissioners and is one of our most highly regarded gramming, state & regional programming, national pro-
career employes. We welcome him to this new position of gramming & news. FM & TV stations would also be added
responsibility which we are confident he will discharge as soon as Dept. of Defense restriction requirements-
with ability & distinction." Joke around Commission is silencing stations for reasons other than denial of navi-
that only one of 4 bureau chiefs is an attorney. He turns gational aid-are sent to FCC.
out to be George Turner, chief of Field Engineering Bu- Magazines were criticized last week for letting "tele-
reau, who holds both engineering & law degrees. vision dictate the terms of battle in their race for circu-
lation at any cost" and for "their concern to keep the
advertiser smiling even if some readers frown." Theodore
ABC-TV network & Doyle Dane Bernbach "have mu- Peterson, dean of College of Journalism & Communication,
tually agreed to terminate their relationship" April 30, U. of Ill., told Magazine Publishers Assn. in Washington
according to joint announcement. Network has not yet that biggest TV threat in next decade will come from
decided on a new ad agency. space satellite broadcasting & color.
6 -TELEVISION DIGEST APRII. 1, 19_3
TRANSISTORIZED UHF TUNER FOR GE SETS: Intensified uhf tuner development programs which
were started after passage of all-channel law are beginning to bear fruit already. One of first really new uhf
tuners to be seen on TV sets in the marketplace probably will be tiny GE -built unit using one transistor & one
subminiature tube.
Tuner was made possible by rapidly declining prices of silicon transistors-a situation which is be-
ginning excite consumer electronics engineers. Necessity for tiny tuner in GE's line is obvious: its 16 -in.
to
lightweight set has no room for full-sized tuner; its upcoming 11 -in. obviously will provide even tighter space
challenge. Nevertheless, it wouldn't be surprising to see transistor tuner spread eventually to larger models.
Compact tuner is competitive in cost to full-size uhf tuners GE now buys, GE engineers reported in
technical paper at IEEE convention in N.Y. last week-and they claimed it performs better. Pilot production
line was set up 3 weeks ago, they said.
Tuner uses 918 -type silicon transistor, "which is priced competitively with tubes, and 1N82A tube
mixer. It is capacitance tuned, measures 1 x 13/4 x 21/4 in., nearly 7 times smaller (in volume) than convention-
al tuner it replaces. According to GE engineers, its noise level varies from 9 db at low end to 12 at high end
-"3 db better than our present tuner"-and its gain ranges from loss of 7 at low end to plus -11 at high, termed
"an improvement of several db." Oscillator radiation varies from 150 to 300 uv/m, well under FCC limits.
Introduction of new tuner will mark one of first intrusions of transistor circuitry into conventional AC-
operated TV sets. That TV engineers are interested in transistorization is indicated by advance program of
June 17-18 IEEE Chicago Spring Conference on Broadcast & TV Receivers, which will devote at least one half -
day session to transistor applications in TV-including intriguing RCA paper entitled "A 19-in. 114 -degree line-
operated all -transistor TV receiver." Same conference will feature halfday session on uhf tuner design.
Note: Just as GE is now planning to produce its own tuners, it eventually will make its own record
changers. Company has agreed to purchase all record -changer dies, patents, etc. from Glaser -Steers Div. of
Ametek Inc., eventually (within about 2 years) will set up changer plant in connection with Decatur, Ill. fa-
cilities of its audio products dept. It's understood company has assured present suppliers (V -M & Garrard) that
it will continue current purchasing arrangements at least through July 1963.
WHAT'S HAPPENING TO RA.erIO SALES? In face of continued good TV sales and near -sensational
phono pace this year, Topic A among industry marketing experts is the sudden drop in radio sales.
In first 11 weeks of 1963, distributor-to-dealer sales of domestic radios were 15% below 1962's com-
parable figure. Unofficial estimates placed Jan.-Feb. dealer purchases of radios at 1,108,000 vs. 1,261,000 in
Jan. -Feb. 1962, a dip of about 12% for the 2 months. Picture has been even gloomier in first 2 weeks of March.
Radio inventories at manufacturer & distributor levels dropped, too-by about 7% as of beginning of
March, from 12 months earlier. This is "not too bad-but not too good, either," in words of one manufacturer.
It's not too bad if sales are going to pick up, but not too good if market continues to decline.
Exact reasons for drop are difficult to ascertain. One theory is that U.S. public has been on radio -
buying binge, stimulated by ever-declining prices, and is now suffering from temporary glut. Another is that
dealers have stopped buying in anticipation of momentary further price cuts. It's just about year since tran-
sistor radio price war became intense. Certainly, scare psychology is abroad now, and there's plenty of worry
in industry about possibility of renewed shooting in this price war.
Black -&-white TV, meanwhile, is more than holding its own with last year's sales figures-distributor
8 -TELEVISION DIGEST APRIL 1. 1963
sales for first 11 weeks being nearly 4% higher than last year. For first 2 months of this year, however, TV
sales were more than 5% ahead of 1962 about 1.04 million units vs. 987,000.
Phono sales continued blockbusting pace set in last half of 1962, and distributor -to-dealer sales for
Jan. (latest figures available) were 44% higher than in Jan. 1962. (For official EIA Jan. TV -radio-phono sales
& production figures, see p. 10.)
25 -IN. COLOR BULBS 18-24 MONTHS OFF: Picture tube manufacturers have received first "early
developmental samples" of bulbs in Corning's program to devise glass for 19- & 25-in. rectangular color tubes
with 90-degree deflection. "It will be 18 months to 2 years before we could produce such a bulb in quantity,"
we were told last week by Corning TV bulb dept. sales mgr., William H. Hudson. And it could take even
longer for industry to develop tube from the glass.
"This isn't even 'sampling' in the traditional sense," said Hudson. "This is the first approach to
what we think is the final design-the first step in an evolutionary process. The final bulb undoubtedly will
have different dimensions from these first mechanical samples, just as these bulbs differ from our original
mechanical drawings."
Samples were in 25 -in. size-one funnel and several panels to each tube maker. There'll be no
sampling of 19 -in. bulbs for some time, since that size will be merely scaled -down version of 25-in., and pre-
sumably tube makers' proposals for changes in 25 -in. will also be adapted to 19 -in. design.
This doesn't mean there won't be changes in color tube shapes & sizes before 1965. RCA's postponed
90-degree 21 -in. round color tube now is expected to be available by early next year (Vol 3:10 p7). Motorola
& National Video are still working on 23-in. rectangular 90 -degree tube, using black -&-white bulbs (re-formed
to color's more exacting tolerances by Dearborn Glass), and this tube could go into limited quantity produc-
tion this summer.
There's also an outside chance some color tubes may come from across Pacific. Tokyo Shibaura
(Toshiba) demonstrated compact color consolette with its new 16 -in. rectangular 70 -degree 3-gun shadow-mask
tube at last week's IEEE show in N.Y., and company spokesmen indicated they're eager to sell tube to U.S. set
manufacturers. Production & exports will begin later this year, they said, and they added set makers are
"interested." (Japanese also are producing 21 -in. round color -bulbs.) No prices were quoted, nor have arrange-
ments been made for export of complete color set.
Imports of color tubes may well get some serious consideration by U.S. set makers if it appears
Japanese manufacturers really can deliver-and if tight situation in domestic color tubes continues. RCA
color tubes are on strict allocation, with "new customers" being held to as few as 7,500 for year. And we
know of several old customers who'd like to get more than they've been promised. However, it's unlikely
the Japanese can deliver color tubes in significant quantities this year.
Although Raulcmd, Sylvania & National Video are all going into color tube production later this
year, it's not believed that their 1963 output will ease situation considerably-unless set makers' predictions
of consumer demand for color are way off.
Note: Another color tube modification may be coming up soon. Pittsburgh Plate Glass has developed
version of its lighter -weight & lower -cost 1/8 -in. Teleglas safety shield for laminating to color tubes in place of
current 3/16-in. type. PPG, incidentally, expects 1963 to be its best year in laminated safety glass sales, in
estimating that 2 million picture tubes will use PPG process this year, with 21 -in. color & 19 -in. b&w its most
popular types.
'ALL-AMERICAN' SETS DISAPPEARING: Like it or not, sun seems to be setting on day of the "all-
American -made" TV, radio or phono.
It's now commonplace to find Japanese & Dutch receiving tubes in U.S.-made TVs & radios, Danish
tuners in FM sets, British changers in stereo phonos. Facts of economic & political life of the '60s dictate that
suppliers, as well as customers, are to be found on either side of either ocean.
Importing of complete TV chassis or sets by American set makers may shape up as trend, if economic
NEW SERIES VOL. 3, No. 13 TELEVISION DIGEST -9
advantages can be proven. High quality transistor radios & tape recorders from Japan have helped overcome
some public prejudice against Japanese electronic equipment.
Recent report that Westinghouse is considering importing 6 -in. Mitsubishi transistor TV (Vol. 3:9
p7) is significant. Currently, only 2 U.S. set makers-Olympic & Symphonic-are importing Japanese models
as well as making own sets here.
In Aug. 1961 we reported Japanese TV manufacturers were combing U.S. for chassis business (Vol.
17:32 p18). In a sounding of industry opinion at that time, we found only Olympic & Symphonic even mildly
interested. Now, nearly 2 years later, Japanese manufacturers are renewing efforts to win U.S. set makers as
customers for complete sets or chassis-and some are building own trade names on U.S. market.
Transistor radio market is most "international" of all. Complete Japanese- & German-made radios are
being imported & sold here by some leading U.S. set makers. But most U.S.-made transistor radios-particular-
ly highly competitive miniatures-are keeping in the price race at least partly due to use of some Japanese
parts (particularly tuning capacitors & speakers) along with U.S.-made components.
All major holdouts against part-importing-save one-have now given in and are using some foreign
parts in small transistor radios. Sole exception is Zenith, which may now be on brink of switching to Japanese
components in some of its miniature radios. "We're looking at it now," we were told by Zenith Sales Corp.
Pres. Leonard C. Truesdell. Use of all-American components in low-priced pocket radios "hurts the profit pic-
ture terribly," he said. "If we do import parts, we'll use them in nothing except miniature sets, and we'll use
only 2 or 3 parts which meet our quality standards."
TV-RADIO PRODUCTION: EIA statistics for week ended March 22 (12th week of 1963):
March 16-22 Preceding wk. 1962 wk. '63 cumulative '62 cumulative
TV 149,775 134,464 129,899 1,608,207 1,553,551
Total radio 300,182 315,997 361,343 3,760,761 4,291,018
auto radio 121,933 140,536 131,132 1,723,176 1,504,968
"Dear Dave" letter from color TV fan was reproduced Three new 16 -in. sets, by Admiral & Emerson, high-
by RCA as full -page ad in trade journals last week. It light last week's introductions. Admiral premiered 15 TVs,
was from Dr. Allen B. DuMont, addressed to RCA Chmn. 2 stereos & new transistor radio line. Admiral's entry
David Sarnoff. It read: "About a month ago I purchased into 16 -in. market includes first remote -control model
an RCA Mark 8 color television receiver. The picture ($159.95) and standard 16 -in. set ($129.95). New 19 -in.
quality of this set is far superior to what I expected. portables in 2 series (17,000 & 20,000 volts) are priced at
With many programs the color fidelity seems to compare $139.95, $149.95 & $159.95, top model in each series carry-
very favorably with the best motion pictures from Holly- ing open list. Four new 23 -in. consoles & 2 color lowboys
wood as projected on motion picture screens. The 'Bell have open list. Also added were 2 stereo portables at
Telephone Hour' and Disney programs seemed particularly $69.95 & $79.95. Radio line retains 6 -transistor pocket
good. It is quite a let -down to see black-and -white pro- leader at $14.95 (with earphone & battery); among the 12
grams afterward. Despite what may have seemed to be radios are 6 which can operate on house current or re-
quite a cautious attitude toward color by me some years chargeable batteries through use of AC Charger Plug
ago, certainly the RCA receivers and transmissions of ($5.95). Among other Admiral radio items: 8 -transistor
today are technical achievements of the highest order. miniature with 3 -gang tuning ($29.95); 10 -transistor
You are to be congratulated for persisting in color tele- AM -FM sets at $49.95 & $59.95. Emerson introduced 5
vision development almost single-handed. Color should TVs, including 16 -in. with sleep -switch & personal listening
greatly increase television's importance to the public." jack ($139.95), two 19 -in. all -channel portables (open list);
2 TV-stereo combos with FM stereo ($379.95 & open).
Emerson's brisk TV sales this year have made it
necessary to increase production more than 50% higher New Emerson table radios are $19.95 & $24.95.
than last year's rate, according to Emerson Div. sales dir. "Two -in -one" closed-circuit TV camera was unveiled
Leo W. Hahn. As demand for 16 -in. sets continues to rise, at IEEE show in N.Y. last week by Sylvania. With 800-
he told distributors, company has doubled production but line resolution, it is claimed to be able to perform vir-
continues to work against back orders. "All -channel sets," tually any function of a studio camera. Completely tran-
he added, "are selling at a much faster pace than we an- sistorized unit features removable vidicon unit which
ticipated," and now account for 25% of Emerson's total functions as "slave" camera. Slave or complete unit can
TV business. He said TV -phono combos were completely be operated remotely from up to 1,000 ft. by means of
sold out, and Emerson has introduced 2 new models origi- detachable rear control panel. Price is $2,875. Other new
nally intended for June line. He predicted company's 1963 CCTV cameras were shown by Dage, Sony & Nippon
TV business would be 25% higher than 1962. Electric.
10-TELEVISION DIGEST APRIL 1, 1963
Trade Personals View from the SUITIMiU: Zenith Sales Corp. Pres. Leon-
ard C. Truesdell finds business continuing to run ahead
Delbert L. (Debs) Mills elected vice chmn., Raymond of last year on week -by -week basis, with outlook still
W. Saxon pres., RCA Sales Corp. Mills, who is also RCA excellent.
vp-gen. mgr. in charge of Home Instruments Div., for- He warned, however, that on industry -wide basis, "re-
merly was Sales Corp. operating vp; Saxon was marketing tail sales around the country are beginning to lose some
vp. W. Walter (Wally) Watts continues as RCA Sales steam," but added that this may he little more than normal
Corp. chmn., relinquishing post of pres.; Saxon's position seasonal decline. Although TV & stereo are going strong,
is new one. Truesdell reiterated observation of others in industry that
Robert H. Platt, GE Credit Corp. treas. & finance radio sales are trailing last year's pace and will do so for
mgr., joins Magnavox April 1 as finance vp, succeeding first half. Other comments by Truesdell, in answer to our
John Sturgeon, retired. questions:
All -channel sets: All Zenith sets except 16 -in. are
Earl I. Anderson appointed RCA Home Instruments readily convertible to all -channel through addition of tuner.
Div. operations mgr., succeeded as chief engineer by Loren
Factory -equipped all -channel sets are sent to areas of sub-
R. Kirkwood.
stantial uhf telecasting, but conversion is made by dealer-
John G. Clarke, ex -Forest Products Div., named a vp at option of customer-in other areas.
of Owens-Illinois' Consumer & Technical Products Div. Component hi fi: Zenith has looked into field, decided
(which includes former Kimble Glass Co.) and mgr. of not to enter it because of "miserable pricing situation."
product development & marketing for TV bulbs and other Its record changer is being offered only through regular
glass for electronics industry; he succeeds G. Pryor Mol- Zenith distributors & dealers and is same as the one used
loy, who has been named vp-gen. factories mgr. of Crista- in Zenith phonographs-not a special component version
leria Peldar S.A., Medellin, Colombia; Clarke reports to as originally planned.
John P. Kearney, vp-gen. mgr., industrial & electronics Kimcode picture tube: "We will not experiment on our
products. customers. As it is proven in, we'll probably go ahead
Arnold R. Forbes appointed GE TV receiver dept. and use it."
product planning & mkt. research mgr., succeeding John FM -stereo table radio: Truesdell sees "good future"
S. Chamberlin, recently named radio receiver dept. mktg. for good -performing sets. "It takes money to build, and
mgr. this will keep the list price up. You can't think of this in
Charles E. Wolf, ex -Warwick Mfg., joins Symphonic the same terms as a $49 FM set. It will never take over
Electronic as operations dir. the radio business, but it's a good business and we're
pleased with it."
Dean Phillips, ex -Motorola, returns to Packard Bell
16 -in. TV prices: "We have a very high percentage of
as radio sales mgr., a new post.
the industry's 16 -in. sales at $159.95, despite the fact that
Dr. Elmer W. Engstrom, RCA pres., will address open- the others are selling at $139.95."
ing day luncheon, April 22, of Society of Motion Picture Consoles: "Our sales of consoles are ahead of last
& TV Engineers' 93rd convention, Atlantic City, N.J.
year in terms of color & black -&-white grouped-and
Richard A. O'Connor, retired (Jan. 1963) Magnavox that's the way you have to think of consoles now."
chmn., receives U.S. Navy's highest civilian citation, The Color: Truesdell predicts industry sales of about
Distinguished Public Service Award, for outstanding con- 600,000 sets this year, with Zenith supplying one-third of
tributions & "personally directed efforts which led to the this number.
solution of diverse & numerous technical problems."
Robert T. Reid named Pacific Semiconductors gen. Jan. Sales Figures: TV distributor -to-dealer sales were
sales mgr., a new post, succeeded by Arthur M. Liebschutz up 7% in Jan. over Jan. 1961 figures, phono sales up
as northeast regional sales mgr. 44%-and radio down 20%-according to EIA market
data released last week (see p. 9 for later estimates).
David Scott -Atkinson named Clairtone Sound planning Production statistics showed all -channel sets accounted for
& development dir. 12% of Jan. output, vs. 7% a year before. EIA's Jan.
Nicholas A. Di Orio appointed RCA electrical & raw 1963 figures vs. Jan. 1962:
materials purchases dir., a new post, with staff purchasing PRODUCTION DISTRIBUTOR SALES
responsibility for all commercial divisions, except Home Jan. 1963 Jan. 1962 Jan. 1963 Jan. 1962
Total TV 484.415 4SS.S64 503.521 465.836
Instrument and Tube Divs. TV with uhf .... 58,032 39,609
Total radio .... 1.229,507 1.350.603
Francis I. Sullivan appointed counsel for Sylvania's Non -auto ......... 635.002 820.031 453,348 562.869
FM radio 57,641 76.510
Semiconductor, Electronic Systems and Lighting Divs... . Auto 594,505 530.589
Lawrence P. Riddle appointed a Sylvania PR project mgr., Total phono. 341.694° 259,559° 316,525 219,726
Mono. 53,635' 68,545' 81,046 48,423
with responsibility for corporate projects & press contacts Stereo 258,055° 191.014° 235,479 171,305
in N.Y. area. * Factory sales.
Herbert A. Finke appointed National Co. pres., chief Warwick Mfg.'s sales of Silvertone blow TV sets in-
exec. officer & a dir., succeeding Joseph H. Quick, retired. creased tenfold during past decade vs. industry's over-all
10% net reduction, Pres. Lawrence G. Haggerty declared
Paul Hosted named International Rectifier director at ceremonies marling firm's 10th anniversary. He also
general of European operations. noted growing market for color sets, said Warwick is
Cornelius W. Owens appointed AT&T personnel vp, "further increasing our already major investment for pro- 4
Per
Period
Pre -Tax Com1300
Company Sales Het Earnings Common
Earnings Shares
Share
Times-Mirror
1962-year to Dec. 31
1961-year to Dec. 31
1962-year to Dec. 31
4,804,028
4,582,066
145,810,341
354,048
(643,656)
6,224,837
-
.49
1.45 - 4,300,492
1961-year to Dec. 31 126,374,499 5,476,822 1.28' 4,282,534'
Notcs: 1 Record. 2 After preferred dividends. 8 Before $7.6 million non- Jan. -1962 stock dividend.
recurring gain. ° After $363,758 nonrecurring loss. ' Adjusted to reflect
Common Stock Dividends GT&E has placed on market $50 million of 4'%0
Stk. of sinking fund debentures due 1988. They're priced at 101%
Corporation Period Amt. Payable Record & accrued interest to yield 4.43%, are not redeemable at
Littelfuse Q $0.03Y.ß May 15 Apr. 30 lower interest cost to company prior to March 1, 1970.
MPO Videotronics Q .10 Apr. 15 Mar. 29 Giannini Controls, Conrac's parent, "in terms of
Mergers & acquisitions: Litton Industries has acquired earnings is moving up again," Pres. Donald H. Putnam
for undisclosed common stock & convertible debentures told annual meeting. He said first-quarter earnings will
Winchester Electronics, Norwalk, Conn. maker of elec- top those of 1962's final 3 months.
tronic connectors o Advance Ross Electronic stockholders
will vote April 24 on offer by H. M. Byllesby & Co. to
acquire company on a share -for -share exchange. Byllesby,
an investment firm, already owns 32% of TV components Television Digest
maker's 707,131 outstanding shares. o Microwave Asso- PUBLISHED BY TELEVISION DIGEST, INC.
ciates will acquire International Microwave Corp., Cos HEADQUARTERS: 2025 Eye St., N.W., Washington 6, D. C.
Cob, Conn. in a stock exchange. Phone: 965-1985. TWX: 202-965-0979
National Co. anticipates "good volume & a profitable EDITORIAL NEW YORK OFFICE
year in 1963" despite fact that showing in first 2 months ALBERT WARREN, 580 Fifth Ave.
wasn't a "brilliant one," reported Chmn. Herbert C. Guter- Editor & Publisher New York 36, N. Y.
man. Malden, Mass. maker of electronic products & fre- JONAH GITLITZ, Circle 6-2215
Managing Editor, TWX: 212-640-6938
quency standards earned $9,718 on $8.8 million sales in
Television Digest
1962 (Vol. 3:11 p12). Stockholders approved restricted DAVID LACHENBRUCH,
stock option plan under which newly appointed Pres. Her- PAUL STONE, Editoriol Director
bert A. Finke will be able to buy 20,000 shares of National Editorial Director, CHARLES SINCLAIR,
Television Factbook Contributing Editor
common at 100% of the fair market value. VIRGINIA SNOWDEN,
Ampex sales & profits in fiscal -1963 year, ending April Monaging Editor, PHILADELPHIA OFFICE
30, will be higher than anticipated. Pres. W. E. Roberts Television Factbook
111 Beverly Rd.
now forsees 13% sales gain to "about $95 million" from BUSINESS Overbrook Hills
fiscal -1962's $84.1 million. Net income is expected to soar EDWARD M. KELLY, Philodelphia 51, Po.
about 50% to approximately $5 million from $3.2 million. Generol Monoger Midway 2-6411
Ampex earlier foresaw 10% sales rise & net income up RUDOLPH SAPPER, HAROLD RUSTEN,
Circulotion Monoger Associate Editor
"substantially."
Wilcox -Gay has filed $300,000 trademark infringement TELEVISION DIGEST. Published Mondays. Services: $75-$150 onnually.
suit against Majestic Electronics Ltd., Chicago, charging For group rates & other subscription services, write Headquarters.
latter with selling TVs, radios & other electronic products TELEVISION FACTBOOK TV & AM -FM ADDENDA
Published Annuolly Published Saturdoys
under "Majestic" brand. Wilcox -Guy contends that action
AM -FM DIRECTORY
is infringement of its trademark "Majestic, Mighty Mon- Published Annually
arch of the Air."
wsßRLrTelevision
with
Digest
Consumer Eleetrohies . (starting on page 10)
APRIL 8, 1963
NAB LE, RY NEW SERIES VOL. 3, No. 74
The authoritative service for executives in all branches of the television arts & industries
APR 8 1963
SUMMARY-INDEX OF WEEK'S NEWS
Broadcast Consumer Electronics
NAB FCC-TAKING FIRMER POSITIONS, Collins gaining more
& 15 -YEAR-FORECAST by Sylvaniá s Frank Mansfield: TV sales to
acceptance from conventioneers who bridle at Commission moves dip this year, eventually rise to 9 -million annual pace, home
on commercial ceiling and license fees. Ratings, CATV, also top radios increasing to 18.7 million by 1977 (p. 10).
topics (pp. 1 & 7). TRANSISTORIZED UHF TUNERS in 2 versions-full-sized & minia-
NEW ERA IN BROADCAST equipment foreshadowed at NAB ex- ture-offered by General Instrument; small versions to be 'widely
hibits by solid-state modular products. New cameras proliferate, used this fall' (p. 10).
including many more vidicon units; 4-vidicon film chains & 17-in. COMPONENTS MAKERS SCORE BIG 1962 GAINS. Combined
monitor steal color spotlight; active interest in uhf transmitters sales of 20 firms rose nearly $60 million to $1.531 billion from
(pp. 3 & 8). 1961's $1.471 billion; earnings of 23 components & tube makers
climbed $13.5 million to $61.8 million from $48.4 million (p. 11).
WEARY NIELSEN BOWS AFTER ROUGH FINALE: Chicago king-
pin concludes testimony taken over 3 weeks, hit hard on 'judg- FAIR TRADE POT BOILS ANEW: Motorola-Chicago initiates fair
ment' factors in compiling reports, for canceling ABC Radio, for trading; Pa. Supreme Court justice blasts state's Fair Trade Act;
makeup of sample (p. 4). new organization formed to fight fair-trade legislation (p. 13).
FRUITS OF UHF PROMOTION include all-channel set -sale percent - GOVT. & FOREIGN PARTS: Initial decision in Motorola case
tage up to 50% in Washington, plans for N.Y. seminar. Govt. - indicates FTC examiner's view that radio can't be called 'Ameri-
industry committee organizes (p. 5). can' if 'essential parts' are imported (p. 14).
POSSIBLE NEW AM -FM STANDARDS: FCC commissioners have PHILCO NEGOTIATES OTTER TAKEOVER: Agrees 'in principle'
before them long-awaited Broadcast Bureau proposal to alter to acquire stocks of Philadelphia, Newark & N.Y. distributor,
standards. Strict contour protection, abandonment of 'demand' John M. Otter companies, but emphasizes that action does not
system for AM allociations, among proposals (p. 6). reflect plan to replace independents with branches (p. 14).
NAB FCC-TAKING FIRMER POSITIONS: "Collins sounds more & more like our boy. We're glad
Minow is leaving, but we doubt that the next FCC chairman will be better-and he could be worse, so life with
the Commission isn't likely to be easier." That's about the typical reaction of NAB members at end of conven-
tion in Chicago last week.
Convention produced more open hostility to FCC & govt. regulation than heretofore. This was inten-
sified by fact that all questions came from floor during FCC pcmel period, weren't written and screened as in
preceding years. Commissioners bristled noticeably at some crudely expressed "questions" which were pri-
marily speeches. For example, Comr. Bartley, who has legion of broadcaster friends, asked: "When are we
going to get the questions?"
Conventioneers definitely had dander up about FCC's proposal to put Commission teeth into NAB's
own commercial Code limitations, and its vote to impose license fees (Vol. 3:13 p2). They were most tickled at
Collins's all-out opposition to these.
And delegates cared not at all for Minow's proposal that law be passed requiring all broadcasters
to belong to NAB and to give NAB power to discipline violators of commercial provisions. (Minow would
leave Code's programming provisions alone, said it would be "dangerous" to touch these.)
Minow's recommendation that uhf be stimulated by having networks grcmt both vhf & uhf affiliates in
each market -the uhf to rerun some programs later, at lower cost to sponsors-was generally regarded as an
impractical nightmare from economic standpoint.
2 -TELEVISION DIGEST APRIL 8. 1963
But delegates were told, by NAB Gen. Counsel Douglas Anello, that one or 2 FCC votes are likely to
switch, killing chances of ceiling on commercials cmd that there is 50-50 chance of beating Commission in
court if it does finally adopt such limitations.
Program ratings-the shaking up given industry by Harris Subcommittee (see p. 4 for last week's
developments)-are giving many broadcasters the willies. Delegates seemed relieved to hear Collins review
work being done in NAB's Research Program. He said plan will be submitted to board in June meeting.
Charles Crutchfield, Jefferson Standard Bcstg., at one meeting said: "We must help put out the fire that is
threatening to consume us."
FCC proposal to charge license fees-up to $100 for major applications (Vol. 3:13 p2)-provoked live-
ly opposition, including one suggestion from floor during FCC panel session, that govt. be charged for public
service announcements. Comr. Hyde endorsed this.
Mich. GOP Gov. Romney, April 3 luncheon speaker-and a very effective orator-delighted au-
dience with blast at spread of "federal power" and of "broad indictments of the broadcasting industry." He
contrasted current FCC actions with free -enterprise philosophy of his late father-in-law, Federal Radio Com-
missioner Harold A. Lafount (1927-1934). New Comr. Cox said Romney would be surprised to learn that La -
fount voted for many Commission actions which are today termed "program control." Said Minow later:
"Gov. Romney said he was not well informed on the subject. I agree with him." He added: "He has a fine
sense of responsibility. If more broadcasters had as much responsibility, we wouldn't need much govt. regu-
lation."
Not all broadcasters condemned Minow totally & flatly. One top telecaster put it this way: "It's his
job to make whatever proposals he thinks are right. I think he's wrong in many of them-but it's our job to
consider them carefully and tell him why he's wrong." Nor has Collins abandoned his strongly held but un-
popular views. For example, in news conference, discussing his opposition to cigarette commercials aimed
at youth : "I have no change of feeling whatever. I've become even more convinced that it was the right
thing to say. This is another case in which the broadcaster has waited for govt. to tell him what to do."
Minow's well -prepared & well -delivered speech was accepted politely. But since he declined to dis-
cuss reports of his resignation-though he joked about them-everyone in audience tended to shrug it off with
assumption Minow is "lame duck." Audience applauded only once-when Minow reported that FCC had re-
duced AT&T after-9 p.m. long-distance calls to $1 and suggested that reduction "might induce the rating serv-
ices to make a few more calls."
Minow hasn't lost his zealousness. For example, discussing industry self -regulation through Codes,
he departed from prepared text to say: "Gov. Collins, the time has come for more than speeches." And, com-
menting on Omaha -type hearings: "I cannot understand how local expression about broadcasting service
can be interpreted as governmental interference with freedom. The public's right to insist on having a voice
in your decisions, and the public's right to free expression, will be honored & maintained."
Collins brought joy to conventioneers, was applauded 12 times, with such statements as these:
"There is wrong in your FCC house ... Commissioners, you have burdened, and threatened to burden, the
many for the wrongs of a few. And we submit these efforts constitute a serious threat to the preservation of
freedom of expression in this country."
But Collins said best way for industry to achieve respect of govt., is to improve, and he proposed 5
steps: (1) Improve ratings. (2) Reduce advertiser influence on programs. (3) 'Project & enforce our Codes." (4)
Develop an NAB Program Dept. (5) Join forces to fight illiteracy, in countries such as Dominican Republic,
which has solicited our help. Said Collins: "I believe all these proposals, beyond their intrinsic merit, will fur-
ther advance our public interest posture."
Convention had some excellent & unusual panel discussions and debates (for highlights, see p. 7).
Equipment developments put growing emphasis on solid-state modular products & ease of maintenance (see
pp. 3 & 8).
Registration was 3,437, greatest ever. The 1964 convention will be held in Chicago's Conrad Hilton
again; 1965 confab is set for Washington, probably at Shoreham & Sheraton -Park hotels.
NEW SERIES VOL. 3, No. 14 TELEVISION DIGEST -3
NEW ERA IN BROADCAST EQUIPMENT: Sharp break with past in station technical operations
was foreshadowed last week at NAB equipment exhibits in Chicago.
Trend to transistorization & modularization of equipment, which first became evident at 1962 conven-
tion, is more than mere nuts -&-bolts matter. Real significance is that virtually breakdown -free and no-
repair equipment is now in sight. One veteran industry engineer goes so far as to predict "disposable cir-
cuits," which can be unplugged & discarded-replaced, not repaired.
Revolution is more than technological. It's dictated also by anticipated vitalization of uhf & small-
market TV, as well as ETV-coming generation of Ma -&-Pa (and schoolteacher) TV operation. Trouble -free,
compact, long-life equipment, which can be "repaired" by unskilled personnel is becoming vitally needed.
At thisyear's equipment show, almost every new piece of broadcast gear employed solid-state cir-
cuitry in whole or in part. Majority of it was modularized (for plug-in replacement) in one form or another.
Take just one example-sync generators. Several solid-state modular units were shown. Typical version oc-
cupied only 12 in. of rack space, drawing 30 watts of power-far cry from TV's early generators which took
up huge cabinet, consumed hundreds of kilowatts and required own air -conditioners. Among equipment
highlights:
Cameras: Never was there such abundance of new live cameras-plenty of 3 & 41/2-in. IOs, but par-
ticularly studio vidicons. Vidicon cameras (now mostly transistorized) have come long way, are being bought
by networks for news & weather shows, recommended for many small -station uses. Side-by -side demonstra-
tion shows their grey scale & lack of noise are more comparable to 41/2 -in. than 3 -in. IO. New 11/2 -in. vidicon is
used in several film cameras and one live one (Sarkes Tarzian).
Color: Interest & enthusiasm was generated by new type of color film channel, using 4 vidicon pick-up
tubes-one for monochrome (luminance), 3 for color (chrominance). GE showed production model, sold it to
WSM-TV Nashville; RCA showed developmental one with 1'/2 -in. vidicon for monochrome channel. Principle
is similar to developmental 4 -tube live camera shown by RCA last year, and understood to be due for unveil-
ing in production version at next year's NAB.
GE showed updated live color camera, partly transistorized, developed to provide good registration
with its Talaria color theater -TV projection system (Vol. 3:9 p3). One of stars of show was Conrac's 17 -in. rec-
tangular color monitor (using Japanese 90 -degree tube), displaying beautiful picture. This mostly transistor-
ized unit will also be sold by RCA (under own logo), GE, others.
Interest in color was somewhat greater than last year-most of it centered on film & slide equipment.
Very few stations seem willing to make expensive plunge into live color.
Tape: Lower -cost transistorized VTR ($34,500) from Ampex and the previously shown deluxe tran-
sistorized TR -22 from RCA took spotlight. Ampex offered & demonstrated its Editec electronic editing acces-
sory which makes possible animation & time-lapse photography on Videotape. Also premiered was Ampex s
120-1b. portable VTR, using 2 -in. tape and designed for closed-circuit market, at $11,900. Much interest was
shown in Precision Instrument's 68 -lb. TV recorder at $12,150, demonstrated at Storer Bcstg. suite in Executive
House. Sony's portable recorder also attracted attention. (Precision & Sony machines were described last
week in Vol. 3:13 p6.)
Uhf : Revival of interest was evident, and there was talk-in sessions and on exhibit floor-of new
high -efficiency Eimac power klystron, incorporated into GE's redesigned uhf transmitter line. ITA Electronics
announced its entry into TV transmitter field with 25-kw unit-currently being designed. We were told new
transmitter will be fabricated to reflect newly relaxed FCC rules, and that video & audio power may be de-
veloped by single Eimac klystron of the new type (instead of 2).
FM & stereo: Interest has shifted from transmitters & stereo generators to transistorized stereo con-
soles and to stereo monitors which anticipate FCC's upcoming standards. Transmitter manufacturers agreed
that business would continue in state of suspended animation until end of FCC's FM freeze.
For more detail on new broadcast equipment, see p. 8.
4 -TELEVISION DIGEST APRIL 8. 1963
WEARY NIELSEN BOWS AFTER ROUGH FINALE: End came finally to Harris Subcommittee's
sampling & evaluation of Nielsen methodology. It was another rough week for Chicago kingpin, which has
been on stand for 6 full days & 4 half days spread over 3 weeks. Pres. A. C. Nielsen Jr. was home from Aus-
tralia, observed hearings 2 days.
"It's been a long, tedious situation, like pulling an eye tooth," said Chmn. Harris (D -Ark.). Originally
planned for 21/2-3 weeks, hearings now go into 6th week. (For NAB convention reaction, see p. 2.)
Much time was spent on Nielsen cancellation of ABC Radio pact because network didn't want new
services at increased cost. Nielsen quit publishing ABC Radio figures in June; first Sindlinger report for only
ABC Radio came out in Sept.
After establishing that many ad agencies won't look at network salesman unless he has Nielsen
figures, Rep. Moss (D -Cal.) said: "You have a virtual monopoly position. A client has to take everything
you sell or nothing." Nielsen had made changes to report 4-week cumulative ratings, rather than 2 -week, to
improve auto report & to report portable -set listening twice a year.
Staff counsel Robert Richardson said: "You call them improvements, but ABC Radio called them bad
research" and didn't want to go along with increased costs (monthly bill would have gone from $8,900 to
$9,900). Henry Rahmel, Nielsen exec. vp, said other networks wanted these changes as soon as possible and
that Nielsen couldn't offer 2 kinds of network radio service at same time.
Auto report became center of controversy. It's based on gross 690 sub -sample of 1,120 national
homes. Information is based on diaries supported by Recordimeters in 25% of sub -sample autos. Diaries re-
flect only time auto set is on, not stations tuned. Nielsen report, however, provides networks with estimates
of their auto tune -in shares based on in -home listening shares. Subcommittee was incensed, asserted that
this procedure-one of supposed improvements that ABC Radio didn't like-wasn't based on research.
A network representative who had sat in on all -network meeting with Nielsen, discussing these
changes, told us that research firm was not enthusiastic about auto proposal. Moss said its only value is to
permit a network to inflate its listening. He said he hopes "FTC will take critical look at what I regard as an
outrageous action."
Another critical point brought out was that Nielsen uses "judgment" factors in compiling reports. A
day's listening from one week's diary may be "borrowed" to reflect that listening for the 2nd week's diary if
latter has no entriesfor that day. Company also uses "bridging"-attempts to match Recordimeter & diary
entries. In some cases, normally valid diaries are thrown out. Nielsen said such practices occur rarely.
Furor developed over Louisville report in which 39 diaries were discarded. Richardson said inclu-
sion of these diaries would have upset rankings to show non-subscriber WAKY ahead of subscriber WKLO,
contrary to published report. Rahmel asserted: "We don't do business that way."
Richardson had some surprises regarding "secrecy" of Audimeter homes. Through normal diligence,
without Subcommittee power, he said, he was able to locate 70 homes in 6 months. Nielsen vp Warren Cor-
dell was "surprised," said Richardson was "ingenious."
Staff investigator said that an unnamed Nielsen client has for several years had map showing loca-
tion of sample counties. Cordell was again surprised, said company uses only about 6 maps in Chicago.
Rep. Brotzman (R-Colo.) took researchers to task for having no Audimeters in Mountain Time Zone,
which accounts for 4-5% of population: "I don't see how you can logically represent the nation when you
leave out a segment of the population." Cordell said MTZ would only make a difference of 0.1 to 0.2 rating
point. Rahmel said distances make it uneconomical.
Subcommittee made other charges that sample was not representative. It showed that 2 neighboring
families on relief in Chickasha, Okla., were part of national sample, accounting for 100,000 homes.
When hearings started early in March, Nielsen notified TV stations of price increase averaging 27%.
Neilsen official told us it's based on increase in sample and modified sampling procedures. Earliest new rates
go into effect is next Dec. Also pending are proposed changes in local radio, with 5 -fold increases in sample
and 500% jump in rates for some stations.
NEW SERIES VOL. 3, No. 14 TELEVISION DIGEST -5
We're told ARB plans to double sample size. It would probably charge broadcasters 30-40% more.
Except for additional internal research into diary fulfillment errors (Vol. 3:13 p3), ARB plans no other altera-
tions, believes its system has come through well. It's concerned, however, that hearings may have harmed
all services.
Spot check of network researchers attending hearings shows them little surprised. They say they've
been aware of most "weaknesses" in Nielsen. Nielsen officials also told us that, contrary to popular concept
of firm as "fat cat," annual TV-radio gross of $7 million yields little profit.
Serious atmosphere of week's fact -gathering & word -wrangling was broken once. San Diego diary
was filled out by woman who said she listens in morning & at night. She left radio on during day for dog
which "enjoys it as much as a dog can." Diary was counted for that day, reporting: Audience composition
-one woman.
Following Nielsen to stand were 3 of its former field men. They concurred with many Subcom-
mittee charges that meters in home could be tampered with, that survey techniques are sloppy, that cheat-
ing could occur.
At end of Nielsen testimony, Harris said industry self -regulation is strongly indicated. "Someone
had better get to thinking pretty seriously about procedures that are more in keeping with the public
interest."
Fruits of Uhf Promotion: In Washington, 50% of cur- Development of strong uhf lobby was urged by John
rent set sales are all -channel, according to EIA's L. M. English, WSEE Erie, veteran of uhf wars, at meeting of
Sandwick, who believes that govt. -industry seminar for Assn. for Competitive TV (ACT) last week in Chicago.
dealers & servicemen, aiding the 2 uhf in town, is largely Referring to early battles for deintermixture, he said: "If
responsible for great upsurge. Next target is N.Y., he we had been in there fighting in Washington with a solid
said: "We're going to give them a ticker tape job." professional approach, we could have won. We can blame
Post-NAB convention meeting of exec. committee of ourselves for a ridiculous performance, due to lack of
FCC -industry's Committee for the Full Development of
organization, lack of strength." He said "whole attitude of
All -Channel Broadcasting (name changed, substituting
Madison Ave. [toward uhf] has changed," noting that his
"All -Channel" for "Uhf") in Chicago last week: station recently "got more national spot in one 3 -day
visit to N.Y. than we carried in a year." Group also heard
(1) Enlarged itself from 20 to 22, adding Richard report from Comr. Lee on status of uhf and on necessity of
Hull, NAEB, and a labor member to be named later. educating public & dealers. EIA Consumer Products Staff
(2) Appointed 3 committee chairmen: Technical-Ben Dir. L. M. Sandwick asked uhf outlets to help with educa-
Adler, Adler Electronics, churn.; Sarkes Tarzian, Sarkes tion process. In answer to question, he said manufacturers
Tarzian Inc., vice chmn.; uhf station operation-Seymour will not build up inventories of vhf sets to dump on market
N. Siegel, WNYC-TV N.Y., churn.; Adam Young, Adam when all -channel law goes into effect. Dumping, he said,
Young Inc., vice chum.; consumer information-L. M. "is a luxury that's long gone."
Sandwick, EIA, chmn.; Mort Farr. NARDA, vice churn.
Too many engineers: 14 men & a girl were trapped in
Next meeting, in Washington, comes April 29. stalled elevator at Chicago's Conrad Hilton Hotel during
NAB convention April 2. Of the 14 men, 13 were broadcast
Farewell to co -ax: Only 2% of Bell System's inter- engineers, who had just left engineering conference in
city TV mileage is now represented by coaxial cable- hotel's upper tower. The girl was elevator operator.
down from 30% in 1954. So said AT&T long lines div. Trapped between 22nd & 23rd floors, illustrious group
engineer Sheldon C. Jenkins in paper presented at NAB included ABC Engineers Pres. Frank Marx & CBS -TV
broadcast engineering session last week. Other facts about Engineering & Affiliate Relations vp William B. Lodge. As
current status & future plans for Bell's TV relays: Car- elevator operator frantically pressed emergency button,
rier now maintains 94,000 miles of inter -city channels (up one of the engineers asked: "What happens when you
from 39,000 in 1950) and has 141 TV operating centers. hush that button?" Replied the operator: "They'll send up
This sloes not include nationwide network of multi -purpose an engineer." They dici, and rescue was effected on 22nd
broadband channels, available to TV in emergencies and floor.
for occasional special use. AT&T's standard TD -2 micro- Tributes presented at NAB: To Bob Hope, for laugh-
wave amplifiers are being modified to increase their power ter; to Mrs. A. Scott Bullitt, King Stations, for service on
to 5 1.vatts from current '_ watt. New TD -3 system, to be TV Code Review Board; to Harold V. Hough, \VBAP-TV
available in 1965, will have : watts from start. Joint Ft. Worth, as "Dean of American Broadcasters"; to Clair
broadcaster -AT&T Network TV Committee has completed McCollough, Steinman Stations, for service as chairman of
2nd edition of its standard text, Video Analysis, now being joint boards; to former FCC Comr. T. A. 111. Craven, for
sent to all NAB member stations. 40 -some years in govt.
6-TELEVISION DIGEST APRIL 8. 1963
POSSIBLE AM -FM STANDARDS: Long-awaited pro- FM's Turning Point: FM broadcasters' customary air of
posal to alter AM & FM standards is before FCC enthusiasm at NAB & NAFMB conventions last week in
Chicago was tinged with strongest feeling of uptami:m yet
commissioners now. It's understood that following observed among this music -loving group. Hypoed by FM
are some of proposals advanced by Broadcast stereo, increasing set sales & growing sponsor interest,
Bureau : they counted themselves in the broadcasting industry for
(1) Theoretical contours of existing stations would be first time. "Remember, we're broadcasters first, FM op-
protected by new applicants. There can be no overlap. erators second"-or words to that effect-were heard
(2) Traditional "demand" system of allocating AM several times at sessions.
space on individual basis will be changed to a "go -no-go" Broadcasters make money and have sponsors, and
system; application fits or else it's rejected. there was evidence that FM was working up to this e leer-
ing condition. Particularly encouraging was report by
(3) Number of new stations allowed in a market
NAFMB Churn. T. Mitchell Hastings Jr. on Harvard Busi-
would he determined by population. ness School study which predicted: (1) Average FM sta-
(4) Long-range goal would be an integrated AM -FM tion will show profit next year for first time, and in 3
service, with FM not duplicating AM. years FM's profits will triple. (2) By 1973, some $374 'mil-
No new daytime applications for Class II -B, II -D, III & lion will be spent on FM sponsorship, out of total $1.2
IV stations would be accepted unless they meet these billion for all radio advertising. (3) Number of FM sets
standards, among others: Co -channel -0.5 mv/m contour will equal AM by 1967, and FM sets will outnumber AM
of Class II, III, IV stations would be protected by 0.025 by 2.4 million the next year. (4) Number of FM outlets
mv/m contour of proposed station; 0.025 mv/m contour will level off at 3,200 in the 1970's.
of all classes would be protected by 0.5 mv/m contour of They heard FCC Contr. Bartley urge them to main-
new station. tain high quality of FM broadcast programming & adver-
For 10 kc separation-0.5 mv/m contour would be tising standards. Zenith ad vp Erik Isgrig told them to be
protected by 0.5 mv/m of proposed operation. more aggressive in seeking sponsors. He said that last
For 20 kc separation -25 mv/m contour would be year Zenith spent only minor portion of ad funds it had
protected by applicant's 2 mv/m; 2 mv/m to be protected earmarked for FM sponsorship because stations didn't call
by 25 mv/m. on its distributors for business.
For 30 kc separation -25 mv/m contour would be pro- Panel on FM stereo brought out these points: (1)
tected by 25 mv/m. Many advertisers & agencies-including such giants as
GM, Robert Hall, Canada Dry-are supplying or preparing
Broadcast Bureau proposal also says future FM as-
signments will be made through table of mileage separa- stereo commercials. (2) Quality of stereo discs for com-
patible programming is improving. (3) There are still
tions to make possible limited number of omnidirectional
problems in combined stereo & SCA operation, but they
stations rather than large number of stations with direc-
tionalized coverage. are far less nettlesome than year ago. (4) Although most
stereocasters deplore "gimmick records" with exaggerated
Proposal would require all FM stations to duplicate separation, they are programming them during store hours
AM no more than 50% of time. Existing stations would be to help sell sets.
required to do this one year after adoption of rule. There's
no plan to separate AM -FM ownership. EIA Consumer Products Staff Dir. L. M. Sandwick told
panel that U.S. manufacturers would produce more than
In addition to much tighter engineering standards,
million stereo receivers this year. He said this proves FM
proposal includes these AM objectives: Bring primary stereo has been 2nd in public acceptance only to TV-
aural service to areas lacking same; bring first local aural since it took 4 years after introduction of AM radio before
service to as many independent communities as possible; industry reached million -sets -a -year pace and considerably
bring multiple local aural services wherever possible. New longer in monophonic FM.
nighttime applications will be kept to bare minimum.
New standards wouldn't favor suburban applications
seeking to cover large cities. Will computers replace people? Subject continues to
New stations wouldn't be allowed in communities provide lively conversation at major ad agencies in N.Y.
which now have more stations than proposal's population and other centers, and opinions & facts don't always match.
standard (e.g., maximum of 7 stations in city with over Opinion: at NAB convention, Y&R Vp & Dir. of Media
100,000) . Relations Warren Bahr and Media vp Joseph St. George of
same agency told broadcasters that computers "cannot
D supersede buyer's judgment" in areas of program evalua-
tion & intuition. Fact: at BBDO office in N.Y. last week,
Elected to NAB TV board: James Russell, KKTV at least a dozen timebuyers, estimators and other media
Colorado Springs; Otto Brandt, King Stations; Joseph staffers were given notice; most of their functions are
Baudino, Westinghouse; John Dille, WSJV South Bend; being computerized.
Robert Wright, Meridian, Miss.; Glenn Marshall, WJXT
Jacksonville. Chairman will be chosen at June meeting, Contribution of $100,000 to educational WNDT (Ch.
and William Quarton, WMT-TV Cedar Rapids, is expected 13) N.Y. by CBS was announced over weekend by Educa-
to be reelected. Radio board elected Ben Strouse, WWDC tional Bcstg. Corp. Pres. Dr. Samuel B. Gould. It was
Washington, as chairman, succeeding Willard Schroeder, CBS's 2nd financial contribution to station, first having
WOOD -TV & WOOD Grand Rapids, who's expected to be been $250,000 donation as one of several made by N.Y.
named joint-board chairman in June. outlets toward acquisition of station for ETV.
NEW SERIES VOL. 3, No. 14 TELEVISION DIGEST -7
NAB ROUNDUP: Among more interesting sessions Overcommercialization-Lee: "I'm prepared to accept
the industry's judgment." Minow: Industry needs "effective
at NAB convention was informal discussion of self-regulation."
FCC's proposal to put NAB Code's ceiling on com- Omaha -type hearings-Henry: FCC should examine
mercials into Commission rules-a debate between broadcasters' reports on program plans "in light of our
Comr. Lee and Code Board Chmn. William Pabst, 1960 policy statement."
KTVU San Francisco -Oakland. Renewal forms-Ford: "We've made 6 drafts so far.
Lee put good-natured aspect on discussion by opening We need to reappraise programming. We need the industry
with: "These commissioners are not all sons of bitches. to tell us what's current.... Not 'Amos 'n' Andy.'"
In fact, there may be only one or 2." He also gave broad- FCC letters on local -live programming-Cox: "Our
casters some hope by noting that FCC adopts finally only questions are construed as a demand" but they're not.
about 50% of rules it proposes. Hyde: "But a letter has the implication of direction."
NAB Code is a "crutch," Lee said, "It's changed when Ford: "The new renewal form will help, require many
there's trouble. But that hasn't worked. You need adver- fewer letters. We're in an interim problem."
tising, but I'd rather see you raise prices than clutter Loud commercials-Lee: "If I'm asleep and it wakes
up your schedules . . . I think you ought to burden the me up-that's a clue."
few with the virtues of the many. You never see the bad
guy who clobbers you. He isn't a Code subscriber . . . In panel on "Broadcasting in a Free Society," Roscoe
There's no censorship involved, any more than there is Barrow, Dean of U. of Cincinnati law college and former
in the Post Office limitation on print media advertising, dir. of FCC's network study, recommended adoption of
regarding second-class mail privileges." many of the proposals he offered to Commission in his
Pabst: "The FCC release on this was prepared in network report. Basically, he believes more govt. controls
such a rush that Comr. Lee doesn't know what it is. of networks will give stations more freedom. Some of his
It talks about a `special consideration' for stations in views were echoed by Philip Hauser, U. of Chicago sociolo-
sparsely populated areas and `other factors.' FCC should gist who asserted that elected officials (govt.) are more
rescind this notice and investigate the subject ... Rule- responsible to public than are broadcasters. He suggested
making is slow & cumbersome. I think broadcasters will that broadcasters may find more freedom through controls
become disenchanted & demoralized-undermining the -just as traffic rules save lives. Hauser got the only boos
Codes . .. Let us have our `locker room' talk with violators we heard during convention. After moderator Erwin Can -
. . . Some small guys have stricter codes than ours. So, ham, editor of Christian Science Monitor, mentioned "man-
there aren't so many bad guys." aged news" at one point, Hauser said: "A press that is pre-
In other panels, concern was expressed about growth dominantly Republican is also managed news." Hence boos.
of CATV; in one, it was indicated that NAB wouldn't be Attorney W. Theodore Pierson, long-time foe of govt.
satisfied if new legislation to regulate CATV applied controls, said he believes FCC should use more care in
only to systems in one-station markets. TV Board Chmn. selecting licensees-and leave them alone. He went for the
William Quarton linked CATV & pay TV: "CATV and "seek -out-needs" formula originated by Comr. Ford, say-
the Hartfords may become the pay -TV of the future. ing broadcaster should demonstrate "that his incoming
Pay -TV is payment for facilities & talent. We'd like the channels of communication will be efficient and effective
money, but is that the best for the American public? If in yielding knowledge of his audience and his community."
enough homes are connected, they'll outbid us for talent." Donald McGannon, Westinghouse Bcstg. pres., said
A strong CATV committee was appointed: Dwight Martin, situation isn't "black -&-white," but that if broadcaster
WAFB-TV Baton Rouge; William Grove. KFBC-TV Chey- "reaches for his potential, then you're in position to
enne; C. Howard Lane, KOIN-TV Portland; Clair Mc- face the govt. If your house is in order, stand up and be
Collough, Steinman stations; John T. Murphy, Crosley; heard and let the devil take the hindmost." This produced
G. Richard Shafto, WIS-TV Columbia. S.C.: William one of the biggest cheers of convention.
Walbridge, KTRK-TV Houston.
* *
Former FCC Comr. Charles King, Dean, Detroit
College of Law, repeated views be held at FCC. "How can
Among topics & responses at FCC panel session: govt. police 5,500 stations every 3 years? We have to rely
License fees-Minow: "It was a policy set during the on arbitrary standards-percentages-which mean abso-
last Administration-that the people who get the benefit lutely nothing . . . Broadcasters are more responsive to
should pay part of the processing. There's no hardship in needs than public officials."
the cost." Hyde: "There might be some advantage to the Lawrence Laurent, TV critic of Washington Post,
broadcaster in a filing fee." Ford: "We need more specific said Barrow's suggestions "constitute an invitation to a
instructions from Congress." kind of enslavement" and Pierson's advice "amounts to
A broadcaster as next new commissioner-Bartley & an exhortation to commit suicide. Perhaps, only economic
Ford: Depends on which one. Ford: "It's not any of our suicide." He said that American people are always winners
business" to endorse anyone. in the continuing "tug of war" between industry & govt.
License renewals & program proposals-Ford:
"There's no standard of any kind" on percentages to be de-
voted to program categories. "There is a delegation to the FTC spends about 40% of its $11 million -plus budget
staff. If the proposal meets certain criteria, the staff can policing advertising & labeling that may be false & de-
renew. If not, the staff brings it to the Commission. We'll ceptive, Gale Gotschall, FTC consumer relations represen-
probably formalize the instructions so you'll know what the tative, told recent 9th annual conference of the Council on
staff can renew." Consumer Information in Washington.
APRIL 8. 1963
8-TELEVISION DIGEST
Heavy emphasis on now available ($1,460). Ampex said it had already de-
NEW BROADCAST EQUIPMENT:
livered 40 tape color conversion accessories.
solid-state construction at last
circuits & modular
Other equipment items of unusual interest: Solid-
week's NAB equipment exhibition (see p. 3) state sync generators by Spectron Inc. (distributed by
meant far more "new" broadcast gear this year Visual), Telemet (Telechrome) & Riker Industries. Tran-
than at most shows of recent past. There were sistorized 8 -in. monitors by Connie, Miratel & EMI. Para-
few real "surprises," with possible exception of metric pre -amps for translators, remote pick-up, micro-
unusually large quantity of new products shown wave & CATV by Micromega Corp. (Visual ). Pre-set
RCA solid-state switcher, which can store as many as
by GE-strong evidence of attempt to make up 10 events ($31,500), operating by pushbutton. GE direc-
for some lost ground as full-product purveyor to tional uhf "Zig -Zag" transmitting antenna. Automatic
broadcast industry. transmitter logging equipment, to meet new FCC rules,
Among new cameras was striking new 3 -in. image by GEL & others.
orth unit designed by France's CSF which will be built El
in U.S. by CSF's affiliate, Intercontinental Electronics.
Displayed by Visual Electronics, camera has built-in 10 - Japanese film purse strings will be held by Finance
to -1 zoom lens instead of turret, uses fiberglass & alum- Ministry on purchases of imported U.S. telefilm shows, even
inum case, is transistorized, weighing only 58 lb. It's though govt. in Japan has lifted lid on dollar ceilings by
currently unpriced, but will be "competitive." Also shown doubling permissible spending by program buyers to $3
was 41/2 -in. version, produced in France. million every 6 months. Syndicated shows which bring up
Much interest was centered on improved version of to $1,000 per 30 -min. segment in Japan (about usual going
E1MI's remote pan -&-tilt camera mounting, especially suit- rate now) will receive rubber-stamp approval from Bank
ed for one-man station operation. RCA introduced new of Japan. Any prices higher than that, however, will be
3 -in. image orth camera, partly transistorized, claiming subject to case -by-case approval by Finance Ministry.
picture sharpness approaching that of 41/2-in. camera. Feature film sales to TV in Japan will also be subject to
RCA's 41/2 -in. camera has been revamped & renumbered approval, with price ceiling of about $2,500 per movie. In
TK -60. Washington, meanwhile, Research & Policy committee of
Studio vidicon cameras proliferated all over the place. Conunittee for Economic Development urged that "Japan
New viewfinder vidicon cameras, mostly solid state, were should lower its barriers" to import items, and at same
shown by many manufacturers, including: GE (camera time U.S. & Europe should "end discrimination and reduce
alone, $8,200; complete chain, $12,200); GPL (chain "less restrictions against Japanese exports."
than $5,000 ... as easy to operate as a home TV set") ;
Greece plans TV network with 17 stations serving
Sarkes Tarzian (P/2 -in. vidicon camera, $8,500) ; EMI 80-850 of population. Greek National Bcstg. Institute
(transistorized self-contained chain, "around $5,000") ; will be reorganized as govt. -owned corporation to operate
Continental Electronics (chain $3,500) GE displayed new
;
TV & radio networks. First stage of TV project is esti-
line of improved vidicons and new version of Emmy- mated to cost $7 million, invitations on equipment are to
winning low -light image orthicon. be published soon. Present radio system will be expanded
Film camera chains featured 11/2 -in. vidicons & solid to include 38 FM stations and a shortwave broadcasting
circuitry, providing sharper pictures, greater detail. center with two 100 -kw shortwave transmitters.
RCA's version will be available by year's end. Sarkes International Foreign Exchange between CBS -owned
Tarzian also had 11/2rin. vidicon film chain. RCA showed TV stations and foreign telecasters will be held in May,
new 16 -mm film projector with modular construction, Merle Jones, CBS -TV Stations Div. pres., has announced.
automatic change of projection & sound -system lamps, Third annual offering will be "The International Hour:
virtually instantaneous start, automatic cueing, reverse American Jazz," produced by R'BBM-TV and sponsored
operation & automatic film loop restoration. on 5 CBS stations by Miller Brewing Co. Program will
Conrac's compact color monitor is first to fit in stand- then be exchanged with those of participating countries.
ard 19 -in. rack, uses 95 transistors, 21 tubes, is now in Eight countries took part in 1962; 7 in 1961.
production, will sell for $2,450. Much color interest was Second Mexican TV station has appointed ABC Inter-
centered on new film chains. Both GE's & RCA's are national TV Inc. program purchasing agent & sales repre-
transistorized. GE is promising summer delivery; RCA's sentative. XHFM-TV, due on air in Veracruz this summer,
chain is developmental, with no target date reported for will be first Mexican independent TV station to begin tele-
production model. GE's new live color camera chain is
casting in more than 2 years. ABC International recently
priced at about $55,000.
announced association with XET-TV Monterrey.
Video-tape equipment showed continued trend toward
both sophistication and easier operation. Ampex's new Iron Curtain countries are expressing interest in new
VR -1100, at $34,500, 100% solid state, was described as French Secam color TV system, according to its manufac-
smallest & least expensive standard broadcast TV record- turer, Compagnie Francaise de Television (subsidiary of
er (July delivery). RCA, meanwhile, announced it will big TSF), which says tests are due soon in Russia, Poland
deliver its 100th all -transistorized TR -22 recorder ($62,- & Czechoslovakia. Already testing Secam are France, U.K.,
500)) in May, demonstrated unit in full -color operation. West Germany, Italy & Switzerland.
Many new tape accessories were shown. Ampex's First U.S. station to affiliate with Japanese network
Editec ($9,500, summer deliveries) is claimed to make is Honolulu's KONA-TV, which has signed with Nippon
possible on tape any special effects which can be made TV Network to televise 7 half-hours of Japanese network_
with film; its 2 -speed accessory for 71/2-ips operation is programs weekly.
NEW SERIES VOL. 3, No. 14 TELEVISION DIGEST -9
Gilbert Kingsbury promoted to vp in charge of news
operations, Crosley Bcstg.... Morton S. Stone, ex -account
Television Di est supervisor, Harshe-Rotman & Druck, N.Y. PR firm, named
QXR Network vp.
PUBLISHED BY TELEVISION DIGEST, INC. Alton Whitehouse, one-time eastern div. mgr., Inter-
HEADQUARTERS: 2025 Eye St., N.W Woshington 6, D. C.
national TV Corp., named southern sales mgr., Embassy
Phone: 965-1985. TWX: 202-965-0979 Pictures TV dept... . Bruce Ledger promoted to Screen
EDITORIAL NEW YORK OFFICE Gems (Canada) Ltd. treas.
ALBERT WARREN, 580 Fifth Ave. Claude Piano, ex -Meeker account exec., named exec.
Editor & Publisher New York 36, N. Y.
Circle 6-2215
vp of radio & TV at Vic Piano Assoc., new rep firm.
JONAH GITLITZ,
Monaging Editar, TWX: 212.640-6938
Television Digest 4)fvituary
DAVID LACHENBRUCH,
PAUL STONE,
Editoriol Director Samuel Paley, 85, father of CBS Chmn. William S.
Editorial Director, CHARLES SINCLAIR, Paley, died March 31 in Palm Beach, Fla. He was founder
Television Foctbaok Contributing Editor of Congress Cigar Co., Philadelphia, helped son start CBS,
VIRGINIA SNOWDEN, served on its board 1930-1960. He was born in Russia, came
Monoging Editor, PHILADELPHIA OFFICE
Television Foctbook
to U.S. as a child. Survivors, in addition to the CBS chair-
111 Beverly Rd. man: wife, daughter, brother.
BUSINESS Overbrook Hills
EDWARD M. KELLY,
Philodelphia 51, Po.
General Manager Midwoy 2-6411
Intervention in FCC hearings would be permitted only
SAPPER, HAROLD RUSTEN,
RUDOLPH
Associate Editor
if petitions were filed within 30 days after notice in Fed-
Circulotion Monoger
eral Register, under Commission -requested bill introduced
TELEVISION DIGEST. Published Mondoys. Services: $75-$150 annually. by Commerce Committee Chmn. Sen. Magnuson (D -
For group rotes & ather subscription services, write Headquarters. Wash). Bill would amend Sec. 309(e) of Communications
TELEVISION FACTBOOK TV & AM -FM ADDENDA
Published Saturdays
Act which now allows interested parties to intervene
Published Annually
up to 10 days before start of hearing. Rep. Harris (D -
AM -FM DIRECTORY
Published Annuolly Ark.), chmn. of House Commerce Committee, submitted
similar measure (HR -5327).
USIA budget has been trimmed $8,994,000 by White
Personals House. Amendment to last January's budget sent to Con-
Edward I3leier, ABC-TV vp in charge of daytime sales, gress shows these reductions: $7,375,000 (to $38,625,000)
promoted to national sales mgr. Yale Roe, asst. daytime for acquisition and construction of radio facilities, $579,-
sales mgr., promoted to daytime sales dir. Bernard Saper - 000 (to $145,550,000) for salaries & expenses, $1,040,000
stein promoted to marketing services mgr. for Informational Media Guarantee Fund. Major portion
of cuts come from eliminating Project Teak, medium wave
James A. Schulke, former Magnavox ad & sales pro- station for Southeast Asia.
motion mgr., elected NAFMB's first full-time pres.; he will
head NAFMB's new office at 45 W. 45th St., N.Y.; Instructional TV may have greatest effect by captur-
T. Mitchell Hastings, outgoing pres., was named churn.; all ing on tape a "cumulative record of the best work by the
other officers were reelected. greatest teachers," declares Dr. John Meaney, TV -radio
action dir., U. of Texas, in new booklet, "Televised Col-
Harold Kassens, chief of FCC's Aural Existing lege Courses," published by Fund for Advancement of
Facilities Branch, received NAFMB's 1963 FMMY Award Education. He reports on Ford Foundation's "College
for "his continuing & untiring efforts in developing sound Faculty Released -Time Program for TV Instruction."
& practical engineering standards for the FM industry
and the subsequent standardization of FM stereo broad- Denver pay -TV experiment over Ch. 2 KCTO (former-
casting." ly KTVR) was granted 3 -month extension to July 3 to
Oliver Treyz, former ABC-TV pres. and more recently launch operation (Vol. 2:41 p2). FCC said "good cause" has
been shown: Necessary equipment has been purchased,
Warner Bros. TV sales mgr., joins Revlon as vp.... Lloyd
Cooney promoted to vp-gen. mgr., KSL-TV Salt Lake City.
agreement has been made with phone company, equip-
. Kent Wilson & Roderick O'Harra promoted to opera-
ment space leased, office established. Macfadden Teleglobe
holds pay -TV franchise.
tions dir. & local sales mgr., KERO-TV Bakersfield, Cal.
. . . Harold Gorsuch, ex-WOSU-TV Columbus, O., chief IRT Foundation has been formed by International
engineer, named engineering & technical services dir., Radio & TV Society, N.Y., as non-profit corporation to
ETV WHYY-TV Philadelphia. sponsor expanding activities of IRTS. In addition to cur-
Mike Shapiro, WFAA-TV Dallas gen. mgr., presented rent programs (Time Buying & Selling Seminars, annual
Collegiate Broadcasters Conference, etc.), IRTF hopes to
Broadcast Management Award by General Federation of
offer scholarships in mass communications fields.
Women's Club for involvement in community affairs, news
& editorials. . . . Hugh Robinson, ex -asst. mgr., WMEG WOW Omaha was praised for 40 years of service in
Melbourne, Fla., appointed WFTV Orlando regional sales unprecedented resolution by Nebraska's legislature. April
mgr. has been set aside by station for heavy anniversary pro-
motion. It was established April 2, 1923.
Arch Madsen, KSL-TV-AM pres., & A. R. Munger,
retired pres., Seattle First National Bank, elected to 11 - Sales rep moves; Bob Hix Co. moved April 1 to 280
man board, Queen City Broadcasting (KIRO-TV Seattle). Columbine St., Denver 6. Phone: 222-5465 (code 303).
10-TELEVISION DIGEST APRIL 8. 1963
Coiisumer Electroiiics... .
MANUFACTURING, DISTRIBUTION, FINANCE
1 5 -YEAR FORECAST OF TV -RADIO -PHONO: What will be the measurements of consumer electron-
ics industry 15 years from now? One projection sees factory sales totaling nearly $3.6 billion, up from S2.5
billion in 1963, with retail sales of TV at 8,970,000 sets, factory sales of radios (including radio -phono combos)
at 18,760,000, factory phono sales rising to 6,370,000.
Figures are projections by Frank W. Mansfield, Sylvania dir. of marketing research and dir. of EIA's
Marketing Services Dept. Here are some highlights of Mansfield's projections:
Retail sales of TV sets: Will rise from 1962 total of 6.6 million to 8,970,000 in 1977-after dip to 6,510,-
000 in 1963 & 6,570,000 in 1964. By 1967, annual rate will have passed 7 million, exceeding 7.8 million in 1972.
Figures presumably include both color & black -&-white sets.
Some 61.6% of TV sets sold in 1962 were replacements, Mansfield estimates, while 22.3% were initial
installations, 16.1% second sets in the home. In next 5 years, he forecasts gradual decline in initial sets to
18.6%, rise in replacement purchases to 65.7%. He differs with some prognosticators in predicting decline -not
increase -in rate of 2nd -set purchases. He sees 2nd -set buying dropping down to 15.7% of all set purchasing
in 1967. By 1977, he forecasts that only 17.5% of TV set sales will be initial installations, with 2nd -set pur-
chases down to 12.8% of total and replacements accounting for 69.8% of TV set buying.
His forecast, therefore, is extremely moderate in terms of TV sets per home. He estimates that num-
ber of TV sets in use now exceeds TV homes by about 18%; by 1967, he sees it going up only to 24% -mean-
ing less than one -quarter of TV homes will have more than one set.
Reporting on past & present TV trends (as opposed to forecasts), Mansfield estimates about 60,780,000
sets in use in U.S. today. Of these, 3.9% have screens smaller than 16 -in., 20% 16- through 18 -in., 60.4% 19 -
through 21 -in., 15.7% 22 -in. & over. To date, some 86,223,000 TV sets have been sold to U.S. public---and about
25,443,000 of these have been scrapped.
Radio projection: Mansfield placed 1962 factory sales of radios (excluding auto, but including radio -
phonos) at 13,105,000. Although he predicted decline in 1963 retail TV sales, he foresaw factory radio sales
rising this year to 13,630,000, steadily going up to 15,390,000 in 1967, to 17,150,000 in 1972 and 18,760,000 in
1977. Average factory price of radio (including radio -photo) was put at $34.88 in 1962, and seen leveling off
at $37.20 in 1972-77.
Factory phono sales: From the 5,293,000 sold in 1962, according to Mansfield figures, phono sales
should decline to 5.1 million units this year, then rise steadily -but not passing 1962's pace until 1967. By
1972, sales should be up to 5,830,000, reaching 6,370,000 by 1977. Average unit factory price should rise even-
ly from $98.07 in 1962 to $102.40 in 1963, $110.70 in 1967, S114.60 in 1972 and S117 in 1977.
MORE TRANSISTORIZED UHF TUNE S READY: New miniature transistorized uhf tuner, now in
tooling stage, will be "widely used this fall" by set manufacturers, according to spokesman of General Instru-
ment Corp., largest manufacturer of uhf tuners.
GI's transistor tuner is 2nd to be revealed in 2 weeks. GE disclosed at recent IEEE convention in N.Y.
that new miniature uhf tuner is going into production there (Vol. 3:13 p7). New GI tuner measures 2 x 2/ x 1
in., presumably will be widely used in 16 -in. & smaller sets where space is important consideration.
"Some set manufacturers are already committed" to use miniature tuner, GI spokesman said. Aside
from compact size, he said, transistor tuner's biggest current advantage is its low radiation, well below FCC's
minimum of 500 microvolts (which has been waived by FCC because so few uhf tuners actually could meet it).
NEW SERIES VOL. 3, No. 14 TELEVISION DIGEST-11
Other advantages Long life, as compared with tube -type oscillator; stability. GI hopes to offer new tuner at
price slightly lower than its current tube -type uhf tuner.
Miniature tuner will have same basic characteristics as current tube -type GI tuner, which has be-
come virtual standard of industry. It uses Fairchild silicon transistor and conventional diode mixer. Sensi-
tivity & noise characteristics are said to be about same as conventional tube -type tuner.
-
Miniature tuner is brcmd new, was developed after GI had offered larger standard -size transistor uhf
tuner to set industry. Latter has been in pre -production runs and is ready for production now but so far
there's no indication any set makers will use it. Its price would be "pennies more" than GI's tube -type tuner.
COMPONENTS MAKERS SCORE RIG 1962 GAINS: Last year was a good one for most manufac-
turers of electronic components & tubes. Sales & earnings were upbeat all the way (Vol. 2:50 p11), and push-
ed 1962 totals markedly ahead of 1961's.
Combined 1962 sales of 20 representative companies shot ahead nearly $60 million to $1.531 billion
from 1961's $1.471 billion.
Consolidated earnings of 23 components makers rose $13.5 million to $61.8 million in 1962 from
1961's $48.4 million. The 1962 earnings are after deducting combined $648,017 losses racked up by Aerovox
($506,909) & General Bronze ($141,108). The 1961 figures also are net, after $2,374,166 losses -Aerovox
($606,568), General Bronze ($1,663,832), Sonotone ($103,726).
Many of the companies we analyzed produce other products in addition to tubes & components.
Others are major factors in military production of components & tubes. However, they are representative of
TV-radio components industry & are major indicators of sales & profit trends in area of components for home
electronic products. Companies analyzed are Aerovox, Amphenol-Borg Electronics, Clevite, CTS Corp., Dyna-
mics Corp. of America, Eitel -McCullough, Erie Resistor, Gabriel, General Bronze, Globe -Union, Hawley Prod-
ucts, Indiana General, International Resistcmce, P.R. Mallory, Muter, National Union Electric, Oak Mfg., Sono -
tone, Sprague Electric, Stcmdard Kollsmcm, Texas Instruments, Thompson Ramo Wooldridge, Tung -Sol.
Of 20 firms that posted booming sales of $1,531,004,458, only 3 - Tung Sol, Sonotone & Standard
Kollsmcm-failed to show gain from 1961. Many of the gains were impressive, and record volume was
achieved by 6 companies -Dynamics Corp. of America, Clevite, Thompson Ramo Wooldridge, Texas Instru-
ments, International Resistcmce, Sprague Electric.
In profit picture, only 5 of 23 failed to earn more in 1962 than in 1961, and 3 companies turned in peak
profits. They were Dynamics Corp. of America, Oak Mfg., International Resistance. Only 2 companies finished
year in the red-Aerovox & General Bronze. Both turned in 1961 losses as well, but both reduced deficit last
year -Aerovox to $506,909 from $606,568; General Bronze, $141,108 from $1,663,832. Sonotone reversed 1961's
$103,726 loss with $301,944 profit. Sprague Electric had record operating profits of $6,430,077 -but this was
whittled by nonrecurring loss of $363,758 resulting from U.S. Tax Court decision on 1941-46 income taxes.
Many of the profit gains were impressive. Thompson Ramo Wooldridge nearly doubled earnings to
$12.5 million from $6.5 million. Hawley Products nearly quadrupled profits -to $400,000 from $104,570. Dy-
namics Corp. of America jumped $1.4 million to $3.6 million from $2.1 million. Amphenol-Borg skyrocketed to
$2.3 million from $623,299, and Oak Mfg. soared to $907,031 from $557,662. Erie Resistor more than doubled
earnings to $1 million from less than $500,000.
Sales gains also were heady. Thompson Ramo Wooldridge boomed more than $50 million to $460.3
million from $409.1 million. Texas Instruments climbed to $240.7 million from $233.2 million. Indiana General
rose some $3.5 million to $25.5 million from $22 million. Dynamics Corp. of America was up some $16 million
to $75 million from $49.2 million. Oak Mfg. romped $7.5 million ahead to $30.6 million from $23 million. Am -
phenol -Borg soared $20 million to $93 million from $73 million. CTS Corp. rose to $28.2 million from $21.5
million. P.R. Mallory mushroomed to $99.1 million from $85.2 million. Sprague Electric jumped nearly $10
million to $87 million from $77.3 million.
Only Tung-Sol & Stcmdard Kollsman were down in both sales & earnings. Tung -Sol sales slipped
to $64.7 million from $65.9 million, earnings sagged to $842,139 from $1.5 million. Stcmdard Kollsmcm sales
fell to $90 million from $104.3 million, earnings to $2.3 million from $3.2 million.
12-TELEVISION DIGEST APRII. 8. 1963
Record sales & earnings were posted by 2 companies. Dynamics Corp. of America ran sales to $75
million from $49.2 million, boosted earnings to $3.6 million from $2.1 million. International Resistance set its
records with sales jump to $29.4 million from $24.7 million and profit gain to $2.5 million from $2.1 million.
Here's 1962 -vs. -1961 performance of 23 representative components & tube manufacturers:
Sales Earnings
1962 1961 1962 1961
Aerovox $ (506,909) S (606,568)
Amphenol-Borg Electronics $ 93,082,750 S 73,204,641 2,345,298 623,299
Clevite 101,175,033 91,874,140 6,562,236 5,142,689
CTS Corp. 28,245,799 21,468,189 2,153,391 1,822,734
Dynamics Corp. of America _ 75,014,106 49,165,655 3,572,778 2,093,596
Eitel -McCullough 750,000 486,671
Erie Resistor _ 1,032,449 495,050
Gabriel 31,649,503 30,304,892 1,032,594 591,049
General Bronze 18,957,533 18,641,852 (141,108) (1,663,832)
Globe -Union 69,440,000 62,518,783 2,024,000 2,592,505
Hawley Products 7,500,000 5,880,000 400,000 104,570
Indiana General 25,501,081 22,034,915 2,076,121 1,790,663
International Resistance 29,423,449 24,717,034 2,481,698 2,088,315
P.R. Mallory 99,060,031 85,197,027 5,121,145 4,513,224
Muter 16,500,000 14,553,107 350,000 243,962
National Union Electric 39,488,498 36,517,713 1,151,694 962,214
Oak Mfg. _ - ------------- 30,591,623 23,017,077 907,031 557,662
Sonotone 21,772,006 22,328,588 301,944 (103,726)
Sprague Electric 86,954,897 77,254,031 6,066,319 6,092,473
Standard Kollsman 89,958,321 104,289,859 2,324,816 3,189,761
Texas Instruments 240,692,588 233,223,325 8,557,200 9,446,386
Thompson Ramo Wooldridge 460,314,000 409,077,000 12,454,000 6,459,206
Tung -Sol 64,683,240 65,946,154 842,139 1,510,577
TV -RADII PIR DUCTX N: EIA statistics for week ended March 29 (13th week of 1963) :
March 23-29 Preceding wk. 1962 wk. '63 cumulative '62 cumulative
TV 146,086 149,775 136,529 1,754,293 1,692,859
Total radio 348,585 300,182 353,531 4,109,346 4,635,084
auto radio 142,790 121,933 119,383 1,845,109 1,650,595
Better & cheaper classroom TV sets were urged by Delmonico's sales increased nearly 40(1- in 1962 to all-
Purdue electrical engineering school dir. Dr. William H. time high, according to annual report of parent organiza-
Hayt Jr. at recent IEEE convention in N.Y. He said con- tion Thompson -Starrett Co. The importing subsidiary's
ventional 23 -in. home -type sets have inadequate band- sales totaled $13,966.884 or 40r% of Thompson-Starrett's
width & audio, and they're too small & expensive. He gross in 1962. up from $10,087.820 (42.8(1-1 in 1961. Re-
called for sets with 29 -in. screen, more bandwidth and port said Delmonico has sold about 50.000 AC portable
better, front -mounted speakers-at less cost. He also 8 -in. TVs since set was introduced in 1961's last quarter.
urged exemption of educational sets from all -channel law and that 4,000 retail stores now handle Delmonico imports.
--expected to he granted soon by FCC (Vol. 3:12 p7). (For Thompson -Starrett 1962 results, see financial table.)
Many manufacturers are now producing special classroom Admiral is offering $1,000 cash & all -expense paid
TV sets, almost all in 23 -in. size. (Only presently pro- trip to Chicago as national grand prize for dealer portable
duced larger tube is 27-in.) TV display contest.. Locally -prepared window or in-store
Minnesota Mining & Mfg. has formed Swiss sub- displays are eligible for contest, which also will award 42
sidiary Minnesota Milling Products A.G. at Zurich. regional prizes. 3 in each of 14 geographical sections.
NEW SERIES VOL. 3, No. 14 TELEVISION DIGEST -13
Fair Trade action & reac- is not only in derogation of the common law, it is in de-
FAIR TRADE POT BOILS:
variety of fronts last week. fiance of principles which the Federal Govt. has on count-
tion made news on less occasions enunciated in its anti-trust legislation &
Resurgence of activity indicates that opposing litigation." He added: "Price fixing is at its best a drastic
forces are marshalling, and ebb & flow of contest curtailment of competitive free enterprise."
will have decided impact on retailers & manufac- Wall St. Journal also heaved brickbat at fair trading
turers, and on U.S. House & Senate which are in recent interesting editorial which observed: "Fair Trade
contemplating various price -maintenance & "qual- has a good sound, like 'fair play.' It certainly does not
connote, for instance, `price-fixing,' which to most people
ity stabilization" bills. doesn't sound good at all. But the truth is that fair trade
Motorola -Chicago, Motorola -owned distributor servic- is a label in masquerade ... all fair trade really amounts
ing Chicago & 13 Illinois counties, initiated fair trading to is legalized price fixing." And, belted the Journal,
on all Motorola products April 1 (Vol. 3:13 p11). Action "however this gimmick is operated, its intended victim
is especially interesting because Illinois is one of 23 states is the consumer. The manufacturer & dealer are, in effect,
in which fair-trade agreements become binding on all conspiring to deprive him of the opportunity to shop
dealers of a product if just one dealer agrees to hold to around for the best price he can get. Just for that reason,
minimum resale prices. Even if they have signed no such fair-trade pricing where challenged has been repeatedly
agreements, other dealers of that product are subject to rebuffed in the courts." Pointing to success of discount
legal action if they sell below the specified minimum. Fair houses as additional proof that fair trade has been re-
trade is legal in 18 other states-but agreements are bind- jected by consumers, Journal concluded: "It is, then, too
ing only on dealers who sign. Nine states & District of bad that more businessmen & politicians have failed to
Columbia have no fair trade laws. get the message."
Charles E. Green, member of Chicago law firm that TV -radio manufacturers disclaim any involvement in
set up Motorola-Chicago's fair trade program, told us "it their distributors' pricing & fair trade practices. Such
is binding on all dealers who are customers of Motorola - matters, they say, are exclusive business & domain of dis-
Chicago," does not believe it affects other Motorola dealers tributors. Motorola, for example, told us it has no part in
in the state. He also said that Motorola -Chicago dealers Motorola-Chicago's new fair trade program. It's interest-
who do not choose to participate in fair trade program ing to note, also, that legalities of company -owned dis-
"have no legal rights, in my opinion, and we're perfectly tributor's fair trade program were prepared not by cor-
willing to have it tested if they're so inclined." Dealers porate lawyers but by outside counsel, Robert Nystrom of
who want out, he said, "will not be hurt. It is my belief
Chicago.
that the company would buy their inventory. \Ve cer-
tainly want to be fair. We're not looking to hurt anybody." \Ve spoke, also, with 2 TV -radio manufacturers who
sell direct to dealers-Magnavox & Muntz TV. Former
Earl G. Erickson, Motorola -Chicago vp-gen. mgr., told us that it practices fair trading in states where it's
said action was taken "to put a fair profit back into this legal, and enforces it with vigorous policing. Muntz TV,
business in return for the dealer's time, effort & invest- conversely, has "no fixed resale prices," vp Jack Simberg
ment." He made clear that fair trade program would be told us, adding: "We're not involved with fair trade be-
backed with "adequate enforcement" action.
cause 90% of our sets are sold in areas in which we have
Counter -action to fair trading bubbled in N.Y. last no dealer overlap. Our dealers set their own prices."
week when National Assn. of Consumer Organizations,
Washington -based organization of 8 regional associations
representing some 50 closed -door discount chains, held GE was guilty of bargaining in bad faith during 1960
initial founding meeting for larger association that would contract negotiations with IUEM (Vol. 16:40 p15), a Na-
recruit all so-called mass merchandisers for battle against tional Labor Relations Board trial examiner has held. He
any national or state legislation that militates against
said GE adopted "take it or leave it" position on new con-
discounters. Second meeting for new over-all association
is scheduled for April 29.
tract terms which "caused & prolonged" 1960 strike "in
substantial part." GE will appeal examiner's decision to
"If a retailer wants to sell at smaller profit, it's full 5 -man NLRB. Virgil B. Day, GE management develop-
his privilege," is the way NACO exec. secy. Roger Court - ment & employe relations services vp, said GE will con-
land sums up association's objectives. NACO also will tinue to conduct contract negotiations "in the same spirit
carry its fight to public via PR & education program that & with the same approach as in the past years' negotia-
will emphasize to consumers the benefits that accrue to tions."
them & national economy from discount operations.
Fair Trade also took knocks last week from Penn- Gallo Electronics Corp., manufacturer of Gallo indoor
sylvania Supreme Court, in 5-4 decision that voided penal- antenna system (Vol. 3:4 p9), reported to stockholders that
ties against Philadelphia dealer who sold Metrecal prod- it earned profit of $21,489 on sales of $65,288 in Jan.-first
ucts below fair trade prices after manufacturer Mead full month of production & sales of its antenna. Total sales
Johnson & Co. had obtained a court injunction. since company introduced system Dec. 14 came to $94,980.
Pres. Carl Gallo said company will introduce 3 new prod-
Blasting state's 1935 Fair Trade Act, Justice Michael ucts at May parts show in Chicago: Compact TV antenna;
A. Musmanno, in majority opinion, declared: "The very
TV antenna with built -in -transistorized preamplifier; com-
idea that a commercial entity may hold in one fettering
price-fixing grasp all businessmen engaged in vending a
pact shortwave antenna with transistorized pre -amp.
certain product, just as a herdsman holds lassoed cattle Broadband TV -FM amplifier, for vhf & FM bands, has
on the plains, offends against the most elementary con- been introduced by Blonder-Tongue for master antenna
cept of a free & independent society. The Fair Trade Act systems, at $101.
14 -TELEVISION DIGEST APRIL 8. 1963
°FOREIGN PARTS' CONTROVERSY: A radio can't be Philco Negotiates Otter Takeover: Philco's current ne-
identified as an "American brand" if "parts & gotiations to acquire stock of its Philadelphia, Newark &
material essential to [its] operation" are im- N.Y. distributor, John M. Otter companies, is a "specific
matter between Philco & Otter and certainly dues not
ported A company must "clearly & conspicuously reflect a pattern by Philco to take over independent dis-
disclose" when its products are "in whole or in tributors in favor of company branches," Ford's subsidiary
substantial part of foreign origin," even if assem- told us last week. Transaction is not yet final, but "agree-
bled in U.S. ment in principle" has been reached between Philco &
These are rather startling conclusions drawn from last companies headed by former Philco vp John M. Otter.
week's initial decision of FTC hearing examiner in Re hint that Otter firm had initiated separation move,
charges of misrepresentation of 1959 & 1960 TVs & radios John Otter told us: "I think we both agreed that it was
filed against Motorola a year ago (Vol. 2:14 p9). De- the right thing to do." He also said it would be at least 2
cision is not final, and is subject to Commission review. weeks before he would be able to discuss his future plans.
Motorola statement, issued after examiner's decision, said: Otter has been Philco's Philadelphia -area distributor since
"We do not agree with the examiner's findings and we May 1958, Newark & N.Y. since June 1960. Philco branches
intend to appeal." will be established to service those areas.
FTC examiner Maurice S. Bush said Motorola was Philco pooh-poohed reports that dissatisfaction with
guilty of misrepresentation in referring to its model X23 Otter's fair trade policies is factor in separation move.
as "American brand" because it contained essential com- "I can guarantee that fair trade has nothing to do with
ponents from Japan. He also accused Motorola of "tend- the matter," Philco told us. Re Philco's policies, spokesman
ing to mislead the public" by failing to disclose "foreign told us company has roughly same ratio of 60 independent
origin of components." distributors & 30 branches Philco had at time of Ford
takeover.
If decision is upheld, it could set precedent involv- "We are committed to absolutely nothing, except get-
ing almost every U.S. manufacturer of consumer elec- ting the most effective distribution we can in a given
tronic products-since nearly all use some foreign -made area," we were told. "If that means exchanging an inde-
components (Vol. 3:13 p8). pendent for a branch in one area. or a branch for an in-
Motorola was clobbered in other sections of initial dependent in another, we'll do it. In San Francisco re-
decision, which termed following ad claims deceptive: cently (Vol. 3:10 p10) we exchanged an independent for
Battery life of "hundreds of hours" for some radios, a branch, but, on the other hand, our independent Los
500 & 465 hours for others. (Examiner said tests showed Angeles distributor took over our Phoenix branch's terri-
life of 88-92 and 310-350 hours, respectively.) tory, and our Tampa independent took over 2 Florida
counties formerly serviced by our Miami branch."
Model 8X26 "has 9 times more power to select de-
sired stations, reject unwanted stations." (Examiner said
only comparison made was with earlier model, not with Philco employes at closed Sandusky, O. radio plant
competing brands.) (Vol. 2:38 p9) have petitioned Tariff Commission to in-
Having model 8X26 "is like carrying a full 10 -tube vestigate threat of increased transistor radio imports to
radio in your pocket." (Examiner said this claim implies U.S. employment. If Commission finds that tariff conces-
"audio output" is equal to 10 -tube radio, which he said sions have resulted in import increase, the Philco workers
Motorola stipulates is untrue.) can apply to Labor Dept. for various Federal aids. Petition
Models L14 & L12 have "revolutionary new chassis for worker assistance is 2nd received by Tarriff Commis-
& audio system." (Examiner said Philco had market- tion under terms of 1962 freer-trade law.
ed transistor radio with similar audio system a year Symphonic Electronics has retained as industrial de-
earlier.) sign consultants Robert Hain Associates, Plainfield, N.J.
Golden Tube Sentry system would "eliminate 3 out Symphonic Pres. Max J. Zimmer paid tribute to "Mr.
of 4 service calls" and "triple TV life expectancy." (Ex- Hain's fresh, vital & realistic approach to the design of
aminer said "evidence" shows unit is "utterly without phonographs."
value" in preventing tube failures.) 3Iuntz TV is pilot -producing 2 color TV models for
Motorola intrusion -type picture tubes last 10 times as "field sampling," will have full production & distribution
long as conventional tubes. (Examiner said company by Aug., we learned from vp Jack Simberg. Sets use RCA
placed major reliance on theory in this statement.) color tube. One is lowboy model slated to retail in area of
Examiner also ruled false Motorola's statements that $495. Other is TV-stereo-AM/FM combination in $795 area.
its Custom-Matic tuner was first to be specifically de- Packard Bell Electronics has signed licensing agree-
signed for remote control, that its 4 -wafer cascode tuner ment authorizing Tokyo -based Aiwa Co. to manufacture
was only one which turned out stronger signal than the under Packard Bell brand TV sets & other home electronic
one it picked up; that all of its 1960 sets had 20.000 products for Japanese -only markets.
volts of picture power & 180 volts of video drive.
Two charges against Motorola were dismissed be-
Factory sales by microwave components manufact-
cause FTC's counsel "failed to meet the burden of proof
urers totaled $75 million in 1962, EIA reported in "first
required." They involved claims that L14 radio was "most accurate estimate of the industry's size."
powerful long-distance all -transistor portable available" I:KO General increased earnings in 1963's first fiscal
and that its 1960 TV line was only one with completely quarter, ended Feb. 2S, to $2,147,488 from $1,226,074 a
hand wired chassis. year ago.
NEW SERIES VOL. 3, No. 14 TELEVISION DIGEST-15
Per
Pre -Tax Common
Company Period Sales Net Earnings Common
Earnings Shares
Share
Advance Ross Electronics 1962 -year to Dec. 31 $ 4,531,055 $ 301,268 $0.43 625,220
1961 -year to Dec. 31 3,44 7,875 267,562 .41 652,220
Amphenol-Borg 1962 -year to Dec. 31 93,082,750 2,345,298 1.69 1,388,677
Electronics 1961 -year to Dec. 31 73.204,641 623,299 .45 1,403,678
AT&T 1963 -year to Feb. 28 9,062,740,000 1,397,036,000 5.80 240,7 7 9,000
1962-year to Feb. 28 8,514,233,000 1,302,08 î,0O0 5.55 234,683,000
1963-qtr. to Feb. 28 2,295,271.000 347,803,000' 1.43 243,125,000
1962-qtr. to Feb. 28 2,174,125,000 335,019,000 1.42 235,963,000
Audio Devices 1962 -year to Dec. 31 8,177,588' 457,587' .54 848.701
1961 -year to Dec. 31 7,350.710 308,455 .36 848,701
Clarostat 1962 -year to Dec. 31 10,164,212 318,492 .70 484.392
1961 -year to Dec. 31 9.310.102 311,711 .69 484,392
Eitel -McCullough 1962 -year to Dec. 31 29.451,669 757,392 .41 1,842,288
1961 -year to Dec. 31 27,109,945 486,671 .26 1,842,288
Erie Resistor 1962 -year to Dec. 31 27,061,742 1,032,449 1.14 798,806
1961 -year to Dec. 31 23,691,861 495,050 .49 798,806
Filmways
Hoffman Electronics
1963-6 mo. to Feb. 28
1962-6 mo. to Feb. 28
1962 -year to Dec. 31
136.000
128,000
39.678,270 $ (1,496,977)2
58,036
(54,155)
(705,977)1
--
.10 568,654
568,654
1,538,888
Story below. 1961 -year to Dec. 31 57,243,044 1,153,100 647,100 .42 1,538,888
Lynch Corp. (Symphonic) 1962 -year to Dec. 31 31.527,971 590,602 274,602 .30 963,926
1961 -year to Dec. 31 23,561, 782 869,111 579.111 .77 749,232
Oxford Electric 1962 -year to Dec. 31 9,502,437 55,510' .12 461,989
1961 -year to Dec. 31 8.854.376 119,173 26 461,989
Muntz TV 1963-6 mo. to Feb. 28 6,527,830 684,809 471,600 .33 1,437,482
Story on p. 15 1962-6 mo. to Feb. 28 6,257.293 600,889 600,889 .42 1,437,482
National Video 1963-9 mo. to Feb. 28 12,265,626 87,411 .07 1,233,334
1962-9 mo. to Feb. 28 14,780.412 870,047 .71 1,233,334
A. C. Nielsen 1963-6 mo. to Feb. 28 1,450,450 .85 1,710,000
1962-6 mo. to Feb. 28 1,358,902 .79 1,710,000
Philips Lamp
Story on p. 15
Terminal -Hudson '
1962 -year to Dec. 31
1961 -year to Dec. 31
1962 -year to Dec. 31
1,540,000,000
1.360.000.000
13,917 ,652 290,493
95,177,000
90,000,000
162,770
-
2.64
.16
34,998,880
1,026,804
Electronics 1961 -year to Dec. 316 12,884,957 839,065 430,120 .42 1,026,804
Thompson -Starrett 1962 -year to Dec. 31 29,887,631 800,580 .26 2,820,145
(Delmonico) 1961 -year to Dec. 31 23.539.992 570,689 .18 2,731,529
Wells -Gardner Electronics 1962 -year to Dec. 31 29,804,6641 1,044,636 2.45 422,400
Story on p. 15
Western Electric
1961 -year to Dec. 31
1962 -year to Dec. 31
25,199.005
2,762,104,000'
896,458
135,216,000 --
2.11 422,400
20th Century-Fox
1961 -year to Dec. 31
1962-52 wks. to Dec. 29
1961-52 wks. to Dec. 30
2,607,777,000
90,201.567
107.476.709
122.244,000
(39,796,094Y
(22,532,084)'
-- 2,545,845
2.446.986
Notes: ' Record. 2 After nonrecurring year-end adjustments that resulted "downward revision of inventory values of pictures in release at end
in $1,025,000 loss. s After $971,000 tax credit. After special $12,264 of year & other reserves & writeoffs." s After $13.9 million in writeoffs
charge relating to subsidiaries. 6 Restated to include full year of & reserves but before special income of $25.5 million from sale of
Hollywood Radio & Electronics, acquired Aug. 1961. a After $33.4 million properties which produced 1961 net gain of $2.9 million ($1.18 a share).
-Q
Q
.15
.25
.40
May
May
June 28
1
1
Apr. 12
Apr. 19
June 14
stockholders have hit rich pay lodes in thousands of
products," noted April 3 Financial World profile. "A key
Wometco-A Q .15 May 31 Apr. 14 element in 3M's rise to the top has been its uncanny
Wometco-B ..... _ _.._. _ Q .051!2 May 31 Apr. 14 ability to find products which meet unfilled needs."
WEEKLY Television with
igest
Con.s.urner Elect ics . (starting on page 7'
APRIL 15, 1963 NEW SERIES VOL. 3, I . 15
The authoritative service for executives in all branches of the television arts & industries
WITH THIS ISSUE: Handy Pocket Directory of U.S. & Canadian Stations & Channels (Supplement).
RATINGS HEARINGS END-PRELUDE TO ACTION: House concludes 51/2 output (p. 8).
weeks of testimony, more promised. NAB Research Committee meets TV-RADIO SET MAKERS NET BIG '62: Nine firms that concentrate on
in N.Y. to seek reform. Cowles & Triangle drop Nielsen (p. 3). home electronics boost sales more than $201.5 million to $1.663 billion,
ANOTHER MULTIPLE RADIO OWNER INTO CATV-John McLendon increase profits some $12 million to $62.1 million; 4 Canadian TV -radio
planning to build or buy 10-12 systems in Southeast (p. 5). firms also post big profit gains (p. 9).
BROADCASTERS SCORE BIG 1962 GAINS: TV -radio broadcasters staged sales & profit spectacular
last year. Aggregate revenues of 8 companies which concentrate on broadcasting jumped nearly 13%
ahead of 1961. Combined earnings of 9 companies shot ahead almost 50%. Summed up April 10 Financial
World profile titled "Broadcasters Show Record Results": "Last year was a singularly good one for the
industry."
Clearly reflecting their healthy glow, TV -radio broadcasters were among 6 of 72 major industrial
groups whose common stock performance last year improved over 1961 (Vol. 3:4 p12). And among handful
of 6 gainers, broadcasters were 2nd, with 12.2% rise. In 1961, they ranked close to bottom of the 72 groups.
Combined earnings of 9 broadcasters jumped $5.1 million to $16.9 million from 1961's $11.7 million.
Aggregate revenues of 8 broadcasters rose $16.4 million to $127.8 million from $111.3 million.
Goodly number of 9 broadcasters analyzed have diversified interests, but broadcasting in all
cases is a principal activity. Companies analyzed: Capital Cities, Gross Telecasting, Metromedia, Reeves
Bcstg., Rollins, Storer, Taft, Transcontinent, Wometco.
Broadcasting's "Big 3" also had banner year, scored record sales & profits. ABC sales jumped
nearly 7.5% to record $274,523,000. CBS's owned & operated stations boosted income 32% on 7% sales
increase. NBC accounted for 22% of parent RCA's record $1.752 billion. Parents of network broadcasters-
AB-PT, CBS Inc. & RCA-also posted 1962 record sales & earnings.
Network TV gross time billings last year climbed 12.2% to about $799 million from 1961's somewhat
more than $712 million. It was biggest percentage jump since 1956's 20% leap over 1955 billings. Spot TV
billings also reflected booming broadcast business, with 17% rise to more than $721 million from 1961's
$617 million.
CBS posted networks' major billings gain with 16% increase to nearly $312 million. NBC was up
11.5% to about $282 million. ABC gained 7.7% to approximately $205 million.
2 -TELEVISION DIGEST APRIL 15, 1963
Profit gains were posted by each of the 9 independent broadcasting chains analyzed, as well as
the networks. We did not include in our analysis giant firms whose broadcast activities do not account for
major portion of revenue & earnings. However, it is interesting to note that RKO General scored record 1962
billings & earnings while parent General Tire & Rubber declined in profit from 1961. Boston Herald -Traveler
(WHDH-TV) also had profit drop, but its broadcasting operation increased its revenues to $9.5 million from
1961's $9 million.
Record earnings were scored by Metromedia & Wometco, in addition to 3 networks. Among more
impressive gains: Metromedia-to $2.5 million from $1.2 million. Reeves-$72,451 from $15,283. Storer -56.4
million from $4.5 million. Capital Cities-up a hall -million dollars to $1.6 million from $1.1 million. Trans -
continent TV-$1.6 million from $1.3 million.
Sales of each of 8 companies analyzed jumped from year ago, and gains in the main were im-
pressive. Examples: Capital Cities-to resounding $17.8 million from 196l's S11.8 million. Metromedia-
$53.1 million from $48.7 million. Reeves $4.7 million from 54.3 million. Rollins, in 9 months to Jan. 31-
$5.9 million from $4.7 million. Wometco-$18.7 million from $16 million.
TAFT BUYING TRANSCONTINENT: In largest transaction to date, Taft Broadcasting announced plans
to purchase Transcontinent Television Corp. for more than $37.5 million-paying $21.20 per share for 1,770,512
shares. With assumption of liabilities, total price will be about $40 million.
Two stations must be sold to keep within ceiling of 5 vhfs, 2 uhfs. It's understood San Diego & Bakers-
field properties are to be spun off-and that at least 5 qualified buyers are fighting for position now. Offers
up to $10 million reportedly have been made for KFMB-TV-AM San Diego, $1.5 million for KERO-TV Bakers-
field. Speculation has it that the many organizations bidding include: Storer, Triangle, Cowles, N.Y. Times,
Gene Autry, Shasta Telecasting.
Taft owns: WKRGTV-AM-FM Cincinnati; WTVN-TV-AM-FM Columbus; WBRC-TV-AM-FM Birming-
ham; uhf WKYT-TV Lexington, Ky. First 2 are ABC-TV affiliates; other 2 are ABC-TV & CBS -TV. All are
represented by Katz, except WKYT-TV which is sold nationally by Venard, Torbet & McConnell.
Transcontinent owns: WGR-TV-AM-FM Buffalo; WDAF-TV-AM-FM Kansas City; KFMB-TV-AM San
Diego; uhf WNEP-TV Scranton; KERO-TV Bakersfield, which will be uhf by July 1; WDOK-AM-FM Cleve-
land. WGR-TV, WDAF-TV & KERO-TV are NBC-TV; WNEP-TV is ABC-TV; KFMB-TV is CBS-TV. All are
represented by Petry.
TTC would keep WDOK-AM-FM, which it purchased for $1.4 million in May 1962, can't sell until
May 1965. Stock is valued at 80 cents a share.
TTC pres. David C. Moore said 12 -member board has approved deal. It's assumed annual stock-
holder meeting in Buffalo April 25 will approve sale.
Purchase would place Taft in top-rung position among group owners because of size of markets.
Spokesman said, however, he didn't think Taft would follow road taken by other major groups in represent-
ing owned stations for national sales.
RATINGS HEARINGS END -PRELUDE TO ACTION: Although curtain came down on 51 weeks of
House testimony on accuracy & influence of ratings, it looks as if it's only start of research controversy:
(1) Chmn. Harris (D -Ark.) left door wide open for renewed Subcommittee activity after Easter recess.
NAB's top-drawer Research Committee met last week in N.Y., made special unspecified assign-
(2)
ments to committee members, will meet again in 1-2 weeks.
(3) Amid strong charges against Nielsen of restraint of trade & monopoly-and mounting evidence
of weaknesses in its system-Cowles and Triangle cancelled Nielsen contracts.
Witnesses who testified earlier-James Seiler of ARB and Albert Sindlinger of Sindlinger & Co.-
were recalled to stand last week. Both were questioned about legal settlements they made with Nielsen, as
probers tried to show Nielsen attempts to monopolize national ratings.
Sindlinger told of Nielsen "master plan" he uncovered through former Nielsen employee. Book -size
memo was written in 1947-48, he said, by Chmn. A. C. Nielsen Sr. & Henry Rahmel, exec. vp. Sidlinger said
it blueprinted how company would one day dominate broadcasting, magazine & newspaper research through
patents & fee manipulations. Nielsen denied existence of such plan.
Sindlinger said he believed threatened public disclosure of "master plan" through court subpoena
was one reason Nielsen wanted to settle Sindlinger suit out of court. Sindlinger had sued Nielsen for $2.5
million in 1950, charging firm tried to drive him out of business. He had developed radio measuring device
called Radox, said Nielsen was frightening financial backers with threats of patent infringement suits.
Suit was settled out of court. Sindlinger received $75,000, gave up Radox. He added that he was
convinced actual listening couldn't be measured by mechanical device anyway.
Sindlinger also testified about phone call from Nielsen to late Edgar Kobak, one-time head of Adver-
tising Research Foundation, at 1952 NBC Radio affiliates meeting. He said he eavesdropped, heard Nielsen
say: "It is your duty to stop Mr. Sindlinger at all costs." Sindlinger said Kobak was a Nielsen stockholder
with stock in wile's name.
ARB's Seiler recounted his legal battle with Nielsen over electronic device Arbitron. Seiler said com-
pany in 1955 looked into its development after ARF held that a mechanical device along with fixed sample-
4 -TELEVISION DIGEST APRIL 15, 1963
such as Nielsen's system-was most effective methodology. Richardson quickly entered into record fact that
Kobak, head of ARF, had been Nielsen stockholder.
In about 2 years, Seiler testified, ARB had full Arbitron sample in N.Y. plus partial samples in 6
other markets covering about 24% of population, had plans to go national, had contracts from 3 networks.
In 1957 or 1958, Nielsen filed patent infringement suit. After ARB spent $250,000 in litigation, suit was settled
out of court in Oct. 1961, about 5 months after ARB merged with CEIR. Agreement called for 5% royalty to
Nielsen on all Arbitron reports.
Seiler stated that main reason CEIR wanted to settle was high legal costs. He also said that legal
costs to ARB were major factor in merger and that money drained off contributed to dropping of national
Arbitron plans.
Under questioning by staff investigator Robert Richardson, Seiler revealed new troubles with Nielsen.
Last year, ARB published very complete national audience composition report in which comparable Nielsen
service was "not competitive," he said. ARB charged each network $2,500. This year, Nielsen improved serv-
ice, charged networks about $1,200. Seiler said ARB had little choice but to cut prices to $1,300, adding
that service is no longer profitable.
"We definitely will drop it in future if we don't get more support," Seiler said. He agreed with Sub-
committee contention that low Nielsen prices were set for competitive reasons, not because it is more
efficient.
Seiler also confirmed that he is doubling all samples across the country as most immediate remedial
step ARB can take. He said that disclosures during the hearing prompted the action.
Harris concluded hearings with call for "drastic and radical" changes. He said: "I have no question
in my mind as to the need for some real thoughtful consideration for action." He said rating services-some
well-intentioned, some not-control "one of America's greatest industries." Harris asserted that "amazing rev-
elations" of 3 former Nielsen field men verified Subcommittee contentions that something is seriously
wrong. Subcommittee members also heaped high praise on work of investigators Richardson & Rex Sparger,
under Charles Howze, chief counseL
It's expected that FCC, FTC, possibly Justice Dept. and others will be called to testify after Easter
recess. Harris refused to enter into record letter from A. C. Nielsen Jr., said he could have chance to
testify. Subcommittee gave him opportunity 2 weeks ago, supposedly based on his request. But when
Subcommittee was ready for him, he had already left town, Harris said.
We've learned that letter defends Nielsen service on basis of economics, says firm can provide any
degree accuracy industry wants to support.
of
It's up to industry to decide if it wants "breast of guinea under glass for S10 or a "good fried
chicken dinner for $1.95," letter states.
In dropping Nielsen, Cowles pulls out KRNT-TV Des Moines and Look & Family Circle magazines.
Triangle pulled out 4 TV stations. Cowles said it was unhappy over hearing disclosures and fact that Niel-
sen hasn't answered 2 -week-old letter asking how surveys are conducted. Nielsen shot back that Cowles was
dropping out because Look didn't show up favorably in recent National Magazines Study.
NAB is out to take leadership in ratings reform. Research Committee, under WBC's Donald McGannon,
has made assignments to members. Presumably, NAB will try to coordinate all elements of business-
stations, networks, representatives & clients, as well as research services.
Advice from top-level research academicians will be sought. It's reported that Herbert Hyman,
Columbia U., who worked on Madow Report, may be hired as consultant. Other 2 members of that study
are already committed; William Madow, Stanford U., has worked with Nielsen, Raymond Jessen with Glatt.
Nielsen is preparing large-scale subscriber meetings in N.Y. & Chicago, may open them to press.
"Radio's most pressing problem" is research, RAB Pres. Edmund C. Bunker said last week in
announcing RAB will be ready to begin discussions with Advertising Research Foundation for consultation
on study of radio research. He renewed invitation to NAB to participate financially & administratively, but
added: "This is a radio project and it will be directed with the interests of radio in mind. We will, however,
be happy to furnish to TV, after completion of the project, copies of the report and anything of value."
NEW SERIES VOL. 3, No. 15 TELEVISION DIGEST-5
JOHN McLENDON RADIO GROUP INTO CATV: Comes now another radio multiple -station
owner, John McLendon, into CATV field, further breaking down wall between the 2 kinds of services-and
further complicating NAB's life.
Owner of 5 southern radio stations, McLendon aims to concentrate in Southeast, build or buy 10-12
systems initially. McLendon has retained Fred R. Rutledge as exec. vp & operational mgr. of new subsidiary,
McLendon Cablevision Co., Milner Bldg., Jackson, Miss. Rutledge managed H & B system in Muscle Shoals,
Ala., and Jerrold systems in Cal.
Rutledge said plans call for "rather extensive" investment in field, including installation of micro-
wave to bring signals from cities such as New Orleans & Atlanta. Markets involved haven't been identified
yet. Rutledge said firm is concentrating initially in communities of 6-20,000 population, noting that "the
bigger cities have been pretty well culled over." He said aim is to have systems in groups, each group
managed centrally. "This is as efficient," he said, "as managing a single very large system."
John McLendon (not to be confused with Gordon McLendon group) owns radio WENN Birmingham,
WOKJ Jackson, KOKA Shreveport, KOKY Little Rock, WYOU Tampa.
Among influential & substantial broadcasters now in CATV: Cox Stations, Bcstg. Co. of the South,
RKO General, Triangle Publications, Mrs. Lyndon Johnson, J. Elroy McCaw. Until recently, NAB had no
trouble opposing CATV, fearing encroachment on station income. Its job is getting tougher, as more &
more prominent broadcasters decide that CATV seems to be inevitable-and profitable.
Color is twice as effective in TV commercials as same Close check on TV stations is being maintained by
message in b-&-\v. So stated P. Lorillard & Co. Pres. growing number of major agencies & advertisers con-
Morgan J. Cramer last week to shareholders meeting in cerned with correct scheduling of spot TV commercials.
discussion of advertising policies. Among "built-in -val- Young & Rubicam paved way with recent signing of Broad-
ues" for color TV, he said, was that "our technicians are cast Advertisers Reports to monitor stations in top mar-
able to extract from a color film negative a b-&-w positive kets. Now, 12 more major agencies, handling business for
of excellent quality; thus, all of our Kent and Newport Procter & Gamble. General Foods and Brown & Williamson
commercials are currently being shot in color." At annual (Benton & Bowles, Grey, Compton, Lennen & Newell, et
meeting of rival Philip Morris, cigaret-industry news of al.), have signed for similar monitoring, are already warn-
another sort came from Pres. Joseph F. Cullman III, who ing station reps that BAR reports may be used in lieu of
said his firm, recently diversified into shaving products affidavits in station spot billing.
field, is further spreading, acquiring Clark Bros. Chewing
Gum.
Radio Month kit with theme, "Radio ... the Mobile
Medium," is being distributed to NAB's 1,977 radio mem-
Churchill honorary -citizenship ceremonies at White bers for use in May. Kit includes: Spot announcements,
House, sent to Europe via Relay satellite, were received graphic artwork, programming & promotion ideas, manu-
with excellent quality, and spokesman for Churchill said: facturer tie-ins, news releases, special mailing stamps,
"Sir Winston was deeply moved. He retired immediately window displays, 20 -minute speech text. Highlights of
after the broadcast." Normally, the 88 -year -old Sir material are 2 discs of specially -prepared jingles keyed
Winston stays up late, talking & cocktailing. Program was to theme.
fed to France, Holland, Austria, Belgium, W. Germany. Sale of WDBO-TV (Ch. 6) Orlando, with WDBO &
Hungary & Czechoslovakia telecast it, too-first time com- WDBO-FM, to Outlet Co. for $6.1 million, by the trustees
munist bloc has accepted U.S. satellite TV transmission. for estate of William S. Cherry Jr. (75%) and the 3 mi-
PIans for new NAB hq in Washington, on property nority stockholders has been filed with FCC. Outlet Co.
next to present building, will be recommended by commit- (dept. store) operates WJAR-TV (Ch. 10) & WJAR Prov-
tee headed by Clair McCollough, Steinman Stations, in- idence. Three years ago, William S. Cherry group sold
cluding: Ben Strouse, WWDC Washington; Ben Sanders, WPRO-TV-AM-FM Providence to Capital Cities for
KICD Spencer, Ia.; Joseph Baudino, Westinghouse; Pay- $6,508,808 (Vol. 15:11 p5).
son Hall, Meredith.
Network debut of 4 -vidicon color camera came on
Forfeitures for "teaser" announcements, which failed Easter Sunday, when ABC-TV presented colorcast of 60 -
to identify sponsors, are proposed by FCC for Lafayette, min. Close-up documentary on The Vatican. New GE
La. stations KLFY-TV ($1,000) and radio KPEL & 4 -vidicon film chain, developed jointly with ABC (Vol.
KXKW ($250 each). Stations had carried discount store 3:14 p3), was used for first time. Film camera uses one
commercials saying: "On May 23rd, prices in South Lou- tube for b -&-w (luminance) signal and 3 for colors (chro-
isiana are coming down"-without giving sponsor's name. minance) .
San Juan, P.R. is site of annual meeting of Assn. of NBC News on July 1 opens bureau to cover Common
Federal Communications Consulting Engineers May 9-12, Market developments with hq in Brussels, headed by
at Caribe Hilton. veteran newscaster John Chancellor.
6-TELEVISION DIGEST APRIL 15, 1963
DISCOUNTERS GIRD FOR FAIR TRADE FIGHT: Discounters will carry their fight against "quality
stabilization" & other types of price-maintenance legislation before an April 25 meeting of House Commerce
Subcommittee. Mouthpiece for discounters will be Washington -based National Assn. of Consumer Organiza-
tions, "the only group on the national level for low -margin retailers," we were told by NACO exec. secy. Roger
Courtland (Vol. 3:14 p13). Subcommittee will hold public hearings April 23-25 on HR-3669 (Quality Stabiliza-
tion) & similar bills, and NACO appears April 25.
" 'Quality Stabilization' is straight price fixing, getting by on a false name," we were told by ex -
Philadelphia PR executive Courtland. "The price of a product has nothing at all to do with its quality. If a
low -margin retailer wants to sell, say, a Cadillac at a lower price, that lower price doesn't change the Cadil-
lac's quality one whit."
NACO's Congressional appearance likely will be its last as national spokesman for discount indus-
try. "It's bowing out of the national scene," Courtland told us, in favor of a much larger organization which
will represent all sizes and types of low -margin retailers. NACO is organization of closed-door (membership)
discount department stores, "and it isn't fair for them to continue to carry the ball for the entire discount
industry," he said.
Organization meeting of larger group will be held April 29 in N.Y., at Statler Hilton Hotel. Rep.
Dingell (D -Mich.) will be keynote speaker. Meeting will serve to name new organization, elect officers, estab-
lish procedures for raising funds to: (1) Intensify fight against national fair trade legislation and (2) Educate
public via large-scale PR program on benefits of discount retailing.
"I believe we can be an effective group with an initial membership of 20 companies & 10 to 20 major
lessees," Courtland told us. "Once started, we should be able to add 30 to 60 new members in 6 months."
Initial meeting of new group April 9 "was poorly attended," he said, "but only because it was a hurry -up get
together. In addition to the 9 or 10 discount organizations that attended, we had evidence of interest from
at least 20 others." Initial attendees, who included such discounting giants as GEM International, Zayre, Na-
tional Bellas Hess, Maxam, are underwriting April 29 meeting.
NACO was formed in California 6 years ago. It now comprises 8 associations representing some 50
stores. It will continue to function under its original name & concept from new California hq. "Some of
NACO's members already have indicated their intention of joining the new all-embracing group," Courtland
said.
Summing up discounters' arguments against fair trading, Courtland told us: "In areas where fair
trading is legalized, the over-all cost of products is 28% higher than in non -fair trade areas. There's also a
greater percentage of bankruptcies in those areas. This certainly explodes the myth that fair trading pro-
tects the small retailer."
In other fair trade news last week, Philco distributor John M. Otter Co. went to court to obtain pre-
liminary injunction to prohibit Philadelphia retailer Charles J. Kriebel & Sons from selling Philco products
below fair trade minimums. Case was postponed to April 24, however, because Otter shopper was busy hav-
ing a baby, Otter spokesman told us.
"Sure we sold under the fair trade minimum," we were told by Kriebel, a Philco dealer for nearly
30 years. "We sold one $149.95 Philco TV set for $5 under the price, and it's the last Philco TV set we're
going to handle. The set was a floor model, marked up and with its ear plug missing. The ear plug alone is
worth $4-5. It was a one-only set, and we wanted to get rid of it. The Otter shopper baited our salesman, who
happened to be a part-time man, incidentally, and he let it go for $5 less. We've been selling Philco TVs at
our 2 Philadelphia stores for a long time, and I'm not a whining dealer. But they certainly made a federal
8 -TELEVISION DIGEST APRIL 15, 1963
case out of this one marked-up set with a missing ear plug. I happen to believe that fair trade is wonderful
-but it's effective only if all dealers comply & if competitive brands in your area also are being fair traded."
In Harrisburg, Pa., Penn Appliance Distributors, Motorola distributor in 15 central counties, initiated
fair trading April 8. Pres. Elmer A. Groene Sr. said dealers favor some type of price protection by 50 to 1,
added that his firm is prepared to take legal action against willful violators of new fair trade pricing on
Motorola TVs & stereo phonos.
PHILIPS EXPLORES U.S. PICTURE TUBE BUSINESS: Europe's huge electronics complex, Nether-
lands -based Philips Lamp Works, is making serious exploration of picture tube exports to U.S., and is already
supplying one American set manufacturer with production quantities of 23 -in. black-&-white tubes, in one-year
test of U.S. market.
Doing actual market testing is Amperex Electronic Corp., Hicksville, N.Y., subsidiary of North Ameri-
can Philips, U.S. manufacturer of semiconductors & special -quality tubes, which has been meeting consider-
able success in supplying imported Philips receiving tubes to U.S. TV manufacturers.
Picture tube now being imported by Amperex is "heavy" (non -bonded) 23-in. b&w with 110-degree
deflection (23MP4). Although Amperex officials declined to state quantities being brought into U.S., it's be-
lieved initial shipments have totaled 2,000-2,500 tubes.
"We are doing some test marketing in the OEM picture tube field," we were told by Amperex
entertainment tubes & semiconductors product mgr. Edgar Meagher in answer to our query. "By the end
of this year we'll decide whether to continue this activity. We have accepted some purchase orders and are
supplying against them, but we are still very much in the learning process."
Although Amperex is not publishing price lists on picture tubes and is supplying only one manufac-
turer, Meagher said other set makers have shown interest. Amperex's Philips picture tube is priced same
as domestically made 23 -in. tubes of similar type, said Meagher, but company claims design of tube makes
possible reduction in circuit costs-such as use of half -wave rectifiers-without sacrificing performance. Prin-
cipal difference from U.S. tubes, Meagher said, is in gun design. Philips tube being offered here is full -voltage
type-not low -drive tube.
Will Amperex go into color tube business? Hardly likely for some time. Meagher told us that Philips
is now in pilot lab run of 21 -in. round 70-degree color tubes, in anticipation of start of regular colorcasting in
Britain in 1964, in Germany in 1965.
Meanwhile, Amperex is stepping up imports of TV receiving tubes, based on several new types.
Dutch receiving tubes first received widespread acceptance here on basis of frame -grid technology, now are
widely used in high -frequency portions of U.S. TV sets. Amperex claims substantial share of American TV
tuner tube business, has extended activity into tubes for IF stage sockets, and "this year we'll be active in
deflection circuits," according to Meagher.
®
Another U.S. TV manufacturer has turned to Japan for low -end sets to sell under its own brand
name, meanwhile. Magnavox last week announced entry into 16 -in. field with compact "Vacationer" at
$129.90. Company spokesman said set's cabinet & chassis have been designed by Magnavox and are being
manufactured by "Japanese contract source" (not identified). Some of Magnavox's transistor radios have
been made in past by Nippon Electric. Olympic & Symphonic are other U.S. set makers now importing
receivers from Japan-in 16- & 19 -in. sizes.
Step-up in shipments of TV sets from Japan to U.S. was evident in Japanese govt. statistics on ex-
ports for first 2 months of this year-showing total of 52,578 units shipped, or more than 4% of U.S. TV pro-
duction for same 2 months. Of total, 16,924 were transistor sets, 35,654 conventional tube models. In month
of Feb., average declared price of transistorized set was $81.90, of tube set $41.65 (latter category includes
shipments of raw chassis and sets without picture tube).
NEW SERIES VOL. 3, No. 15 TELEVISION DIGEST -9
TV-RADIO SET MAKERS NET BIG '62: Sales & profits mushroomed last year for most manufac-
turers of home electronic equipment. There were few surprises. From 1962's opening quarter on, indicators
were clear that banner year was in the making.
Our analysis of 13 U.S. & 4 Canadian TV-radio set manufacturers shows, in capsule form: (1) Aggre-
gate sales & profits markedly ahead of 1961 levels. (2) Six manufacturers set sales records. (3) Four had peak
profits. (4) Thirteen of 15 improved sales, many by sizable margins. (5) Fourteen of 17 manufacturers in-
creased earnings. (6) All finished in black.
Nine manufacturers that concentrate on home electronic products boosted 1962 sales more than $201.5
million-to $1.663 billion from 1961's $1.461 billion. The 9: Admiral, Andrea, Arvin, Emerson, Magnavox, Mo-
torola, Sylvania, TraVler, Zenith. Combined 1962 earnings boomed to $62.1 million-up nearly $12 million.
Record sales & earnings were posted by both Magnavox & Zenith. Motorola had record sales. Only
Andrea & TraVler failed to improve sales. Andrea, TraVler & Admiral wound up with profit declines, but
color was a major culprit. Both TraVler & Admiral noted heavy expenses for expansion of color facilities.
Heavy sales & profit gains were racked up by 4 giant multi -product companies which depend upon
home electronic products for only a portion of over-all volume. Combined 1962 sales of GE, GT&E (Sylvania),
RCA & Westinghouse skyrocketed some $683 million -to $9.826 billion from 1961's $9.143 billion. Their ag-
gregate profits rose approximately $64 million-to $460.7 million from $396.8 million.
Record sales & earnings were registered by GE & RCA. GT&E also had record sales. Each of the 4
multi -product giants improved both sales & earnings over 1961.
Profit progress also was rampant north of the border. Canadian Marconi, Canadian Westinghouse,
Clairtone & Dominion Electrohome each posted impressive gains over 1961 to push their aggregate earnings
to $3.6 million-compared with 196l's combined loss of $2 million, stemming from Canadian Westinghouse's
$2.6 million loss. We obtained 1962 sales only of Clairtone & Dominion Electrohome-and both were impres-
sively ahead of 1961 performance. Their combined sales improved to $28 million from $19.8 million.
Profit gains of the 14 companies that improved earnings in 1962 were impressive in the main. RCA
shot ahead 45% to record $51.5 million from $35.5 million. Magnavox zoomed 41% to record $12.7 million
from $9 million. Motorola climbed 28% to $12.2 million from $9.5 million. Sylvania improved to $8.7 million
from $5.6 million. GT&E was up 17% to record $86.3 million from $73.8 million. Westinghouse boomed 25.6%
to $57 million from $45.4 million. Canadian Westinghouse reversed 1961's $2.6 million loss with $1.2 million
profit. Canadian Marconi skyrocketed to $1.6 million from $48,573. Clairtone more than doubled earnings.
No less impressive were gains of 13 firms that improved sales. Magnavox soared 43% to record $202
million from $141 million. Motorola was up 16% to record $346.9 million from $298.2 million. Zenith climbed
14% to peak $312.2 million from $274.2 million. RCA romped 13% ahead to record $1.752 billion from $1.546
billion. GE boosted sales by more than $300 million to record $4.793 billion from $4.457 billion. Clairtone near-
ly doubled sales to $6.7 million from $3.5 million. Dominion Electrohome gained nearly $5 million to $21.2
million from $16.3 million. Emerson jumped nearly $10 million to $80.4 million from $70.9 million.
Here's 1962 -vs. -1961 performance of 9 volume producers:
Sales Earnings
1962 1961 1962 1961
Admiral $ 201,505,441 $ 186,885,235 S 2,459,020 $ 2,915,265
Andrea Radio 5,760,965 6,769,547 318,079 360,245
Arvin 95,343,000 73,701,000 3,582,000 2,432,000
Emerson (year to Oct. 31) _ 80,371,180 70,903,466 2,278,159 1,851,684
Magnavox 202,000,000 140,800,000 12,700,000 9,000,000
Motorola 346,881,779 298,219,845 12,192,862 9,517,308
Sylvania (estimated) - 400,000,000 390,000,000 8,700,000 5,600,000
TraVler (9 mo. to Jcm. 31, 1963) _ _- 18,557,000 19,676,000 233,000 570,000
Zenith 312,212,334 274,167,987 19,637,068 18,014,788
TOTALS $1,662,631,699 $1,461,123,080 $ 62,100,188 $ 50,261,290
10 -TELEVISION DIGEST APRIL 15, 1963
Sales Earnings
1962 1961 1962 1961
Here's 1962 -vs. -1961 performance of 4 multi -product giants:
GE $4,792,732,530 $4,456,815,169 $265,843,769 $242,078,957
GT&E (Sylvania) 1,327,925,000 1,226,584,000 86,269,000 73,774,000
RCA _ 1,751,646,000 1,545,912,000 51,535,000 35,511,000
Westinghouse _ 1,954,479,000 1,913,770,000 57,061,000 45,446,545
TOTALS $9,826,282,530 $9,143,081,169 $460,708,769 $396,810,502
Here's 1962 -vs. -1961 performance of 4 Canadian home electronics manufacturers:
Canadian Marconi $ 1,553,900 S 48,573
Canadian Westinghouse 1,230,605 (2,607,340)
Clairtone $ 6,726,675 S 3,523,075 289,883 125,471
Dominion Electrohome 21,198,502 16,321,850 512,925 397,981
TOTALS _ $ 27,925,177 S 19,844,925 $ 3,587,313 $ (2,035,315)
TV-RADIO PRODUCTION: EIA statistics for week ended April 5 (14th week of 1963):
March 30 -April 5 Preceding wk. 1962 wk. '63 cumulative '62 cumulative
Black & white TV 137,985 146,086 126,241 1,883,167 1,815,814
Total radio 350,536 348,585 351,710 4,553,213 4,987,041
auto radio 169,786 142,790 138,388 2,109,009 1,755,090
Admiral will make 75,000-100,000 color sets this year, RCA TV sales set all-time high in first quarter, RCA
Chmn. Ross D. Siragusa told annual meeting in Chicago Sales Corp. Pres. Raymond W. Saxon announced last week.
last week. Possible shortage of color tubes, he said, would Color TV sales were 30% higher than year ago, portable A
be only deterrent to industry sales of 700,000 color sets. TV up 37%. Company's total home instrument volume,
He said Admiral's first-quarter sales were higher than Saxon reported, reached best level in 12 years, exceeding
year ago, but it was too early to estimate earnings. Citing first-quarter 1962 volume by 10%. Portable phono sales so
"very noticeable increase in sales activity since early far are running 20% better than last year, he added, while
March," he predicted higher sales & earnings for full year. "FM & FM -AM radios sparked over-all RCA Victor radio
He said losses sustained by Admiral's now -closed Italian sales at the distributor level to an 11% increase over the
subsidiary "are behind us and will not affect 1963 opera- first quarter of last year." Tape cartridge recorder sales
tions," and noted that Admiral has concluded Italian li- were up 30%.
censing agreement with Radio Televisione Electronica. Preparing for color debut this summer, Motorola is
Questioned about report in Television Digest that Admiral now conducting color TV servicing program for service
will introduce 11 -in. set (Vol. 3:11 p7), Siragusa replied technicians. Set used for training has 27 -tube horizontal
company is now experimenting and may introduce small hand -wired chassis, 21 -in. round picture tube, which "also
size later in year. He said there is no truth to rumor is designed to drive a 23 -in. rectangular color tube." As of
Admiral may be acquired by Chrysler. April 1, more than 1,800 technicians had completed 12 -
RCA exhibit at N.Y. World's Fair will be geared to hour course, and an additional 7,000 had enrolled.
color TV, with spectator -type color TV program center Price reductions on high -purity silicon, raw material
feeding closed-circuit programs to about 200 color receiv- for silicon semiconductors & molecular circuits, were an-
ing points throughout fairgrounds. Announcing details of nounced last week by Dow Corning Corp. One-piece cru-
exhibit, RCA Pres. Dr. Elmer W. Engstrom said it will cible charges of polycrystalline silicon were cut 10-25äc.
show world "the status & stature of color TV." RCA float -zone -refined single-crystal silicon was reduced ap-
International Div. vp James M. Toney, who has completed proximately 40%.
work on company's Italian project, and has been assigned
as World's Fair participation dir. for RCA, said company Sony Corp. has relocated its West Coast regional
would produce 2,000 hours of color shows each season for expanded quarters at 500 W. Florence Ave., Ingle-
office to
the CCTV system. Other features of RCA display: (1) wood, Cal. New facility, triple size of previous West
"See -yourself -in -color" demonstration. (2) Color mobile Coast hq, will serve 11 western states. Hiro Ohkochi is
unit which will roam fairgrounds. (3) Stereo listening mgr.
rooms. Martel Electronic Sales, importer & distributor of
Packard Bell has licensed Aiwa Co., Tokyo, to produce Uher portable tape recorders and other electronic equip-
1
& market its black -&-white TV sets on Japanese domestic ment & hi-fi components, opens midwest sales office &
market. showrooms in Chicago Merchandise Mart.
NEW SERIES VOL. 3, No. 15 TELEVISION DIGEST -11
Distributor Notes: Guiton Industries appoints All -State "Counnunieations-Eleetronies Goes Beyond All Bor-
Distributors Inc. N.Y. & N.J. distributor for Evcr Play ders" is theme of 17th annual Armed Forces Communica-
rechargeable radios Admiral names Leonard B. .Albert tions & Electronics Convention & Exhibition June 4-6,
regional sales mgr. covering distributors in Hartford, New Sheraton -Park Hotel, Washington. H. I. Romnes, Western
Haven, Providence, Rochester, succeeding Jack A. Freeman, Electric pres., will be keynote speaker at June 4 lunch.
retired Concord Electronics, L. A. tape recorder import- Najecb Halaby, FAA administrator, will address banquet
er, appoints William Mullen to new post of regional sales June 5. Lt. Gen. Alfred Starbird, Defense Communications
mgr. for 24 midwestern & southern states, headquartering Agency dir., will speak at June 6 lunch.
in new regional sales office, Colonial Court Bldg., Glen- Six classroom TV sets were introduced last week by
view, Ill. Crundig-Triumph-Adler Sales Corp. named RCA Service Co., which said they were designed after
East Coast service operation for Grundig products. survey of more than 5,000 educators. Line consists of 2
models in each of 3 series-Classic, Deluxe & Utility. Sets
have 23 -in. tubes with bonded glareproof safety shields.
Electronic organ sales for 1962 were placed at more Classic series has 8 -in. speakers & centrally located controls
than 100,000 units in survey of manufacturers reported in with lockable cover. Among accessories being offered are
April 8 Electronic News. Figure is based on opinions of tip -proof stands, light shields, external speakers and mas-
2 organ manufacturers willing to make estimates. Article ter distribution systems.
quotes one executive as saying sales totaled about $150 Component hi-fi promotion campaign has been ap-
million (based on average price of $1,500), of which elec- proved by members of Institute of High Fidelity. The
tronic circuitry of organs represents more than $100 mil- component hi-fi manufacturers' $75,000 program will in-
lion. Among trends noted in survey is changeover from clude: (1) 64 -page booklet for distribution by dealers to
mechanical to electronic switching and gradual conversion customers. (2) 30 -min. film, Component High Fidelity
from tubes to semiconductor components in other circuits. Story, for showing in schools & on TV. (3) Special Yellow-
Engineering samples of color tubes will be sent to Pages listing for "Registered IHF Audio Specialists."
industry by Sylvania from pilot production later this (4) Exhibits at N.Y. World's Fair and at N.Y. & Los
month. Commercial shipments of color tubes from Seneca Angeles National Design Centers.
Falls plant will begin during 2nd half of year. Two new strap frame receiving tubes have been intro-
3,11 -Revere tape cartridge system will be sold in Los duced by Sylvania for IF amplifiers. Using standard T51/2
Angeles area by 8 retailers with total of 19 outlets. In- structure, they make it possible for designers to switch
cluded are dept. stores, audio dealers & electronic supply from 3- to 2 -stage IF design without retooling, according
houses. to Sylvania.
12 -TELEVISION DIGEST APRIL 15, 1963
Per
Pre -Tax Common
Company Period Sales Net Earnings Common
Earnings Shares
Share
Arrow Electronics 1962 -year to Dec. 31 5,067,112
$ $ 223,577 $ 110,913 80.26 430,000
1961 -year to Dec. 31 4,219,203 274,236 135,406 .31 430,000
Corning Glass 1963-12 wks. to Mar. 24
1962-12 wks. to Mar. 24
66,138,295' 13,258,683
12,576,903
6,931,683' 1.O1Y - 6,791,885
60,357,929 6,768,903 .99' 6,785,662
GE 1963 -qtr. to Mar. 31 1,154,473,000' 119,631,000 58,979,000 .66 89,4:53,687
1962 -qtr. to Mar. 31 1,100,566,000 114,169,000 55,963,000 .63 88,962,489
Hallicrafters 1963-6 mo. to Feb. 28 34,132,000 1,959,000 979,000 .40 2,463,:78.5
1962-6 mo. to Feb. 28 35,599,000 1,742,000 842,000 .35 2,429,000
1963 -qtr. to Feb. 28 16,986,000 956,000 472,000 .19 2,463,585
1962 -qtr. to Feb. 28 15,840,000 826,000 396,00(1 .16 2,429,000
Harvey Radio 1963 -year to Jan. 31 7,188,020 736,801 357,453 .46 770,000-
1962 -year to Jan. 31 4,356,081 480,445 232,592 .30 770,000
Littelfuse 1962 -year to Dec. 31 6,51(1,384 326,087 1.00 323,043-
1961 -year to Dec. 31 5,357,669 197,630 .75 323,043
MCA 1962 -year to Dec. W 188,160,27(i 27,291,840 12,706,849' 2.50'' 4,601,670
1961 -year to Dee. 31' 172,329,325 21,456,554 10,916,554 2.14' 4,040,735
Muter 1962 -year to Dec. 31 16,382,731 751,918 374,274 .30 1,25 7,69:,
1961 -year to Dec. 31 1.1,553,107_ 434,962 243,962 20 1,199,094
Outlet Co. 1963 -year to Jan. 31 19,151,270` 2,089,440 1,013,593' 2.04' 497,100
(WJAR-TV Providence) 1962 -year to Jan. 31 19,329,437° 2,023,226 958,820 1.93 497,100
Pacific Industries 1963-6 mo. to Feb. 28 14,13 7,828 123,694 28,739" i0' 1,887,239
1962-6 mo. to Feb. 28 11,348,712 719,294 413,294 1,627,239
Sangamo Electric 1962 -year to Dec. 31 49,336,151 (1,817,410) (901,410)° 1,637,617
1961 -year to Dec. 31 48,397,578 3,123,310 1,745,310 1.07 1,636,378
Stanley Warner 1963-26 wks. to Feb. 23 66,881,757 2,17 6,965 1,058,965 .52 2,033,924
1962-26 wks. to Feb. 23 67,3 71,250 2,774,984 1,559,984 .77 2,033,924
1963-13 wks. to Feb. 23 32,6 7 2,868 777,187 4 29,18 7 21 2,033,924
1962-13 wks. to Feb. 23 32,08 7 ,800 337,264 247,264 .12 2,033,924
Storer Bcstg. 1963 -qtr. to Mar. 31 9,770,711 3,361,478 1,627,228 .67 2,440,300
1962 -qtr. to Mar. 31 8,700,000 2,862,030 1,238,627'0 .51'° 2,474,943
Times-Mirror 1963 -qtr. to Mar. 31 36,000,000 1,752,000 .40 4,300,492
.1962-qtr. to Mar. 31 30,512,449 162,705 .04 4,296,872
Mergers & acquisitions: ITT & General Controls di- Corp. Radio Shack is now under management control of
rectors have approved a merger under new terms (Vol. Tandy Corp., Ft. Worth maker & retailer of leather goods,
2:49 pll). Stockholders of the Glendale, Cal. maker of which also has signed agreement to acquire the Boston -
automatic control devices will receive 0.1338 share of ITT based distributor of electronic components & devices via
preferred & 0.0586 share of common for each share of 9 retail outlets & national mail-order business. Tandy
General Controls common A&M Instrument share- Pres. Charles D. Tandy becomes pres. & chief exec. officer
holders have approved merger into Loral Electronics Dy- of Radio Shack. Tandy Corp. has agreed to buy more than
namics Corp. of America has purchased for some $7 mil- 50% of Radio Shack's approximate 709,000 outstanding
lion in stock (100,00 shares of preferred, 331,700 common) common shares.
International Electronic Research Corp., Burbank, Cal. Invalidation of 4 Admiral patents on grounds of prior
manufacturer of electronic equipment & components. IERC patents is being sought in Federal Court, Brooklyn, by
will function as a DCA subsidiary Electronic Assistance Avnet Electronics, Garrard Sales Corp. and British Indus-
will acquire Ideal Brass Works, St. Paul, Minn. maker of tries. Action is reply to Admiral suit charging infringe-
door & window hardware, for "slightly less than $3 mil- ment of patents for record players & record player parts.
if
lion in cash & stock" stockholders of both firms approve
Electronic Specialty has acquired in stock exchange pri- Hallicrafters has purchased 17 -acre site at Wilton,
vately held H&S Metal Products, L.A. maker of mechanical Conn. to erect this year 100,000 sq.-ft. manufacturing plant
components Westinghouse will acquire Controls Div. of for its Manson Labs subsidiary.
Ilagan Chemicals & Controls for approximately 130,000 Secondary offering of AB -PT common stock will be
Westinghouse shares, will also get Hagan name. Latter's made this week. Bache & Co. plans to market 426,964
stockholders will vote April 15 to rename company Calgon shares with gross market value of about $14.5 million.
HANDY POCKET DIRECTORY
of
TELEVISION STATIONS
IN OPERATION
1963
APR
:r
1519 :
Television est
2025 Eye Street, N.W.
Washington, D. C.
Poland Spring IMI. Washington, Kirksville - NORTH CAROLINA PENNSYLVANIA El Posa _KROD-TV 141 WEST VIRGINIA Corner Brook, North Shore,
N.H.1 WMTW.TV Ottumwa, la. KTVO -WLOS-TV _WHIS-TV Nad, CBYT N.B. CKAM-TV
Portland WCSH-TV
181
Poplar Bluff KPOB-TV 11SI
131 Asheville 113 Altoona _WFBG-TV DO KTS M -TV
KELP-TVJI
191 Bluefield 161
Cornwall, Ont.. CJSS-TV
15
oliver -Ose yo os,
. 1121
S' -WCHS-TV
Television Stations in Operation
161 WISE -TV 18
162 Erie WICU-TV 111 Charleston 181
WGAN-TV 1931 SI. Joseph -KFEO-TV 121 Chapel Hill _HWUNC-TV El Paso-Juarez_%E-TVJM-T _WBOY-TV Cotonali on, B.C. ___CHBC-TV-3 181
Presque Isle -,_W AGM -TV
14 WSEE 13S Clorksburg 1121
Si_ Louis KTVI 111 Charlalle _WBTV 13 Harrisburg _WTPA 127 XEPM-TV 121 Huntington-. Alfa, _CHCA-TV-1 110 011awa, Onl. _CBOT 141
K MOX-TV 141 W SOC TV 19 WHP-TV 155 Ft. Warlh- Charleslon. _WSAZ-TV 131 CHOC -TV 110 CROFT 191
Dallos -WRAP -TV
191
Durham -Raleigh WTVD
Greensboro _WFMY-TV
t WUTV 136
I1
Johnstown
Loncosrer
_WJAC-TV
WARD -TV
WGAL-TV
16
IS6 Ho Worth
Hoyden
_
-K-TV KG T 111
IS
14 Parkersbvrg-
WHIN -TV
Oak Hill _WOAY.TV
1131
141
Courlonay,
B.C.
Cranbrook,
- _ CBOT -1 19 Parry Sound,
Ont.
CJOH-TV
CKVR-TV1
1131
1111
-
1111 IB
Sedalia KMOS-TV Greenville _WNCT KPRC-TV12
_
161 Houston Mariella, O,_ WTAP.TV B.C. CBUBT Peace River,
WJZ-TV 1131
Springfield KYTV
Lebanon _WLYH-TV 115 1151
Dauphin, Mon
110
Alla. CB%AT-1
(Channel Numbers Parentheses) Salisbury _WBOC-TV 131 Raleigh -Durham WRAL-TV S Philadelphia _WRCV-TV KHOU-TVTRK- 111 Weslon __.WJPB-TV -TV -1 18 171
in. 1161
KTTS-TV 1101 Washington _W
ITN 7 W FIL -TV
13
16
MUHT 113 Wheeling WTRF-TV
151
171 Dawson Creek, Peo ch la nd,
Tndlcales CP Status as of December I, 1962, Station flaring Reported Plans to Start This Year. Wilmington _WECT WCA U -TV iKGN IB B.C. C.IDC-TV 15 B.C. CHPT-TV-1 ISI
T Indicates Non -Commercial Edueatlonal Station.
MASSACHUSETTS. MONTANA W inslon-Salem_ WSJS-TV 2 t WHYY-TV
110
Laredo -KCED-TV IB WISCONSIN Drumheller, Pembroke, On, CHOV-TV 151
--)(00K-TV
1
135
Adorns WCDC 119 Billings Lubbock KLBD-TV Eau Claire _WEAU-TV 11 Alla, Penticton, B.C._CHBC-TV-1
Boston ._WBZ.TV KULR-TV
121
PIINburgh -KDKA-TV 12
111
Green Boy -WBAY-TV
CFCN-TV-1 18
Peterborough,
1131
_
14 181
WTAE KTRE-TV 119 12 Oryden, Ont. CELT 19
WHDH-TV IS Bollo- KXLFTV NORTH DAKOTA 14
KM1D-V WFRV Onl CHER -TV
141 WIIC 12 IS Easlend, Sask. CJFB-TV-1 12 1121
t WGBH-TV
.C:Tv 17 Glendlve _KXGN-TV 1S1 Bismarck _KFYR-TV 15 HWOED
111
113
Midland KD -TV 12 WLUK-TO ill Edmonton, Alla. CERN -TV 13 Pivol, Alla. CHAT-TVl 141
ALABAMA Sallnas- Tampa WFLA-TV 181 Indlanapolle _WFBM-TV 16 11 Groat Falls KRTV _ K%MB-TV h1 Scanlon _WDAUTV KDCDVK9 LaC WKBT le CBXT 14 Port Arlhur,
Birmingham -WBRC-TV 161
MonloreY -KSBW-TV 18 WWI 1131 WISH -TV 18 Greenfield _WRLP 131 KFBB-TV
131
ISI Dickinson _)(D1% -TV 12 Scranton
122
Nacogoc KTES 19 Madison _WISC-TV 13 Edmundslen, Onl, CFCJ-TV 21
W API -TV 1131
San }WEDU 131 WLWI 113 Springfield _WWLP 122 Helena __KBLL-TV Forgo ___WDAY-TV 16 WIlkes -Barre- W N E P -T V Odessa f KOS 119 WKOW-TV 127 N.B. CJBR-TV-1 113 CKPR-TV 2
t WEIO I101 Bernardino KCHU IIB W. Palm Beech_WEAT-TV 1121 Laloyello _WFAM-TV 118 WHY N -TV 140 Missoula __. KMSO-TV
1121
KXGO-TV
116
Odessa. KOSA-TV 17 WMTV 133 Edson, Alla. CERN-TV -2 Prince Alberl,
Decatur _WMSL-TV t KVCR-TV 124 Marion WTAF-TV 131 Worcester _WWOR 114
1131
Grand Forks _KNOX-TV
I11 WBRE-TV 128
Port Arrhur- HWHA-TV
112
Sask. CKBI.TV
Dothan WTVY
1231
San Diego KFMB-TV 18 GEORGIA Muncie _ WLBC-TV 149 NEBRASKA Minel -KMOT
110 York WSBA-TV 143
Bead ont _ KPAC-TV 14 Milwaukee _WTMJ-TV
121
14
Elliot Lake,
Prince George,
S
_ -WALE
141 110 Ont. CKSO-TV-1 13
KOGO-TV Albany _WNDU-TV MICHIGAN _:
_t WITI-TV
tWDIO -TV South Bend 116 B.C. CKPG-TV
_.-
110
Doyle, 121
_1WGTV
110
Grand Island KGIN-TV Ill K%MC-TV 113 Richardson KRTVTV 123 16 Enderby, B.C. CFEN-TV-1 IS 3
_
San Dlego- Athens WSBT-TV Pembina - RHODE ISLAND WISN-TV Prince Rupert,
Florence WOWL-TV 1151
_XETV IB 122 Boy Cily- Hollings KHAS-TV KCNO 11 Son Angelo KACE 8 112 Fslcourl, ou. CJE5-TV-1 170
Hunlsvllle WAFG-TV 1311
Tlluana 16 Atlanta _WSB-TV 12 South Bend- Saginaw _WNEM IS
IS
Volley City _ K%JB-TV 14 Providence -WJAR-TV KACBI- V 3 W%IX 118 Flirt Flan, B.C. CFTK-1 6
Mobile WKRG-TV IIEWT-TV 112 WAGA-TV 15 EIkho,l __WSJV 128 WKN%-TV
Haves Center KHPL-TV 16
Williston KUMV-TV 18 WPRO-TV
1121
San Antonio TTV 4 IWMVS-TV 110 Ouebec City,
151
Terre Houle _WTHI-TV 137 Hay Springs _KDUH-TV 14 1121 Mon. CBWBT 110
WALA-TV 1101
Son Fronclsca _KRON-TV 14 WAI -TVI 111 110 Cadillac- Kearney- KENN-TV 9 Wausou WSAU.TV 17
Fox River, Oue.CHSM-TV 17
Ou, CFCM-TV 4
Monlgomery _WSFA-TV KPI% IS 9WETV 130 Traverse Cily WWTV SOUTH CAROLINA I KERN-TV 9 CKMI-TV 5
1121 IOWA Holdrege _. KHOL-TV WYOMING Grand Falls,
W COV-TV 1201 KGO-TV
TKOED
17
19
Augusta _W1BF
WRDW-TV
16
Ames - Cheboygan _ WTOM-TV
_WJBK-TV
113
14 Lincoln KOIN-TV
113
110
Akron
OHIO
Anderson WAIM-TV 140
KONO-TV I 2
Casper (TWO -TV 121 hind CJCN-TV 14
Ouenlin, B.C. CFCR-TV-4
Ovecnel, B C. CFCR-TV-1
9
WCCB-TV 1321
_KNTV 112 Detroit }KUON-TV WAKR-TV 149 Charleslon -WUSN-TV KWEXWE%-TV 141
Cheyenne _KFBC-TV Gronde Pronto, 1 7
_
Des Moines
WOI-TV 12 111 12
t WAIO 126) Son Jase
San luis
111 Columbus WRBL-TV 13
Cedar Rapids _KCRG-TV
15
WWJ-TV 14 McCook .. .KOMC IB Cincinnall -WLW-T 15 WCIV 14 S Abilene Riverton KWRB-TV 1101
ISI
Ana. CBXAT 110
Red Door, Aita.CHCA-TV 6
Mount Choaha WTVM 19 19
W%YZ-TV WCPO-TV 19 Apie-W _ KCEN-TV. 116 Regina, Sask. _CKCK-TV 2
Obispo _KEBY-TV Ceder Rapids 17 No. P1000 KNOP 11 WCSC-TV IS Greenwo,et Rimouckl, Oue,CJBR-TV
WMAZ-TV
Selma _
Slalo Pork TWCIO
WSLA _
171
181
Sonia Barbaro _KEY -9
Slocklon-
16
131
Macon
Savannah WSAV-TV
WTOC-TV
113
13
-WMTTV
Walerlea
Devnpon -WOC-TV
12
16
Detroll-
Wlndsor- -CKLW-TV
}WTVS 156 Omaha )(MTV
WOW -TV
13
16
WKRC-TV
}WCET
_KYW.TV
112
14B
Columbia _WIS-TV
WCCA-TV
110
12S
Temple -Waco _KCEN-TV
Tyler -
16
U.S. POSSESSIONS
Lake, Sask. CKBI-TV-3
Halifax, N.S. _CBHT
14
13
RivIer du
3
-
Visolla WHO-TV 113 IB Hamlllon, Ont._CHCH-TV 111
)(ICU -TV 1431 Grand Rapids WZZM-TV WJW-TV Ille -WFBC-TV KFDX-TV -I3 Salmon Arm,
Anchorage _KEN1.TV 121 HAWAII LKDPS-TV Ill Grand Rapids-
113 Gering _. KSTF 110
Columbus _WLW-C
18 G
Spartanburg _WSPA-TV
14 Woslace
Wichita Falls KSVD-TV _ 16
GUAM Harrison B.C. CHBC-TV-4 S
KTVA Ft. Dodge __KOTV 14
17 Agana Brook, Oue. _CKCD-TV
__
1111 COLORADO 121 KUAM.hV IBI 17
Hilo --1,(<12,5-TVKALU Kalamazoo WOOD-TV WTVN-TV KSYD-TV Saskatoon,
Folrbanks -KFAR-TV 191 Meson City KGLO-TV IB NEVADA 16 16
KTVF
121
1111 Colo. SplinKs KKTV 1
i
1I 1111 Sioux CITY -TIV 13
14
Kalamazoo _WKZO-TV
Lansing-
13
Las Vegas -._ KORK-TV 121
WENS-TV
9WOSU-TV
110
SOUTH DAKOTA Aguadilla
PUERTO RICO'.
_WOLE.IV
Inverness, N.5._CJCB-TV.1
Jonquiere, Ovo.CKRS-TV 112
16 Salk.
Si..
Saure
CFOC-TV 8
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CFCR-TV-4
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Distributed os a Special Supplement of Television Digests 2025 Eye Street, KW., Woshington,
D. C.
NAB LIJI'&4RY
WEEKLY Television Digest with
Consumer Electronics e e . (starts !?age
NEW SERIES VOL. 3, No. 16
7)
APRIL 22, 1963
The authoritative service for executives in all branches of the television arts & industries
IN THIS ISSUE: UHF Market Guide Showing Stations on Air, CPs & Applications (pp. 8-9)
has done all that can be done." Prospect of regulating ratings under power of Congress to fix standards of
weights & measures was also held out by Harris.
"I can promise you this," he said: "We shall leave no stone unturned in exploring what can and
should be done to improve the ugly rating picture which we have found to exist."
Harris is inclined to let industry take corrective steps. But he means business, and NAB for one
knows it. G Dv. Collins asked Harris last week for a second opportunity to testify within 30 days "for the pur-
pose of advising you and your colleagues of specific corrective measures which we will propose in order
that in the future there will be assured reliability in broadcast audience measurements."
NAB's Research Committee, chaired by WBC's Donald McGannon and headed by NAB vp Melvin
Goldberg, is working out audit plan. Committee members are exploring basic matters: Organization of audit-
ing group, what is really needed in broadcast research, systems of validation for each method, problems
connected with how ratings are used. Significantly, research services are not being brought into picture until
NAB knows what it wants.
Even before NAB Research Committee took positive steps, the association's top govt. relations men
sounded out Harris on his views. He impressed them with the need for action. Harris told them there was
an obvious poverty of quality in ratings and that the reliance placed on them affected the public.
Ratings major-domo Nielsen is working to repair damage done by hearings. Without formal an-
nouncement, it arranged for 2 subscriber meetings in Chicago April 19. Three days of client meetings are
scheduled in N.Y. April 24-26, with possibility that April 24 session may be open to press.
Counterattack to Washington hearings was made at Chicago meetings by Pres. A. C. Nielsen Jr.
In speech titled "The Researcher Replies," he criticized hearing process as "immune from laws of libel &
slander." He said Nielsen ratings are sufficiently accurate; that while national sample is not too large, it's
not too small.
Sessions deal mostly with national services, devote most time to client questions (networks, agencies,
advertisers). Although most of Nielsen weaknesses revealed at hearings dealt with local reports, company
hasn't decided when to get together with station subscribers.
Nielsen shows some business gains after defections by Cowles & Triangle. It signed Reader's
Digest, McCall's, Doyle Dane Bernbach and Erwin, Wasey, Ruthrauff & Ryan to 2-year contracts involving
$180,000.
In letter Harris refused to enter into record (Vol. 3:15 p4), A. C. Nielsen Jr. indicated that his com-
pany-as well as other broadcast research firms-weren't making much money. He also said that one of
his major competitors, reliably reported to be ARB, at one time made overtures to merge with Nielsen.
Pulse Dir. Sydney Roslow, in first appearance since bruising at hearings, told of changes in
methods, some major: Elimination of weighting, pending further research; strengthened field work controls
with appointment of a second asst. field dir. in N.Y.; installation of Watt system of telephoning to validate
work of field supervisor.
Roslow also plans to reduce number of local market reports in large cities from 6 times a year to
4, to reflect seasonal listening, said he would like to see external study to determine minimum sample for
qualitative breakdowns of basic data.
An appeal for an auditing organization, composed of broadcasters, agencies & station representa-
tives, was also voiced by Roslow. Total sample sizes will not be materially changed until Pulse sees what
action is taken by NAB. Roslow also stated that company is still exploring one -day TV diary technique.
Diaries are personally-placed & personally-collected and have been tried in Los Angeles & Cleveland.
Curiously, big ad agency conference-annual AAAA meeting April 25-27 at White Sulphur Springs,
W. Va.-doesn't even have ratings on agenda. However, subject is expected to get a bit of attention.
Corinthian Pres. C. Wrede Petersmeyer, for one, appearing on a panel, is expected to assert that
ratings are necessary and that rating business has no greater percentage of villains than any other field.
He'll urge protection of those whose reputations are at stake in exposures of rating shortcomings,
will come out strongly against additional regulation, will urge all -industry effort to improve ratings.
NEW SERIES VOL. 3, No. 16 TELEVISION DIGEST -3
HARRIS WALKS GOVT. -INDUSTRY 'TIGHTROPE': Oren Harris doesn't make speeches about
broadcasting often, but when he does he always employs the neat device of needling both FCC & industry.
Last week was no exception.
In "Broadcasting & Tightrope Walking," speech prepared for April 20 delivery before Miss. Bcstrs.
Assn. in Biloxi, he: (1) Threatened FCC with trouble if it goes too far into programming. (2) Threatened
broadcasters with spectre of govt. ownership or govt. -operated competition if they don't program in "the
public interest." And, of course, he went to town on ratings (see p. 1).
Chairman of House Commerce Committee, Rep. Harris (D -Ark.) first quoted Comr. Henry, who was
reported saying, in news conference during Omaha hearings: "I don't think necessarily that the standard
that the community might have [regarding programming] is necessarily the one we would have." Harris
said this prompted him to write FCC Chmn. Minow and ask if Henry's statement reflected FCC policy. Harris
said Minow informed him that Henry said his statement in Omaha reflected Commission's 1960 program-
policy statement-wasn't a pitch for greater FCC intervention in programming.
"A careful comparison of Henry's Omaha statement and the 1960 FCC statement," Harris said, "may
disclose some discrepancies." At any rate, Harris went on:
"Possibly Comr. Henry, who is relatively a novice on the Commission and newcomer to the field of
broadcast law may not have properly appreciated how important it is to keep a secure foothold on the
tightrope which stretches between the public interest provisions and the anti -censorship provisions of the
Communications Act. I am gratified that Comr. Henry appears to have regained his balance and that he
solidly subscribes to the Commission's statement on programming policy."
Harris then turned on broadcasters. He noted that attorneys are drafting bills designed to deprive
FCC of "all power, duty or functions directly or indirectly, [to] evaluate or make judgments as to the
public interest in the composition or character of programs..." This, Harris said, would substitute "private
interests" for "public interest"-"which may have great attraction for broadcasters." However, he warned, it
is likely "to stimulate within a very short time a public demand for complete govt. control over radio & TV
programming or at least a public demand for some govt. operated radio & TV stations which will meet
public needs not met by privately operated stations."
Rep. Harris also knows how to walk the tightrope.
NEW CRUX IN CATV REGULATION: Climax in CATV-regulation question may well come this
week. FCC today (April 22) considers position to take, and National Community TV Assn. board meets in
Washington tomorrow & Wed. to do same.
We're told that FCC & CATV operators are in very substantial agreement on most points-except
the crucial one: Should FCC forbid duplication of local station programs on CATV system only in markets
with one station or in markets with 2 or more? Currently, we understand that Commission leans toward
applying the restrictions to 2 -or -more markets, while NCTA members consider this "impossible to live with."
Though NCTA board had authorized exploration of federal regulation, through new legislation (Vol.
3:7 p2), some CATV operators are still opposed to any regulation. If FCC adopts a position today, it may
well take one that permits some negotiation. Up to now, discussions have been at staff level-James Sheri-
dan & Henry Geller representing Commission, attorneys Robert L'Heureux & E. Stratford Smith for NCTA.
FCC staff strongly recommends that Commission not compromise on the 1 -station -market issue-
despite CATV argument that such agreement will assure passage of legislation and that law can be amended
later. CATV opposition is based on premise that systems would have little to offer if they could give sub-
scribers only one network instead of 2 or 3. FCC staff believes that growth of TV stations could be stifled
if CATV is required to protect only 1 -station markets. Staff recommends 3 basic principles in legislation:
(1) For 2 years, Commission could issue rules or orders to require CATV to carry local-station signals
and to refrain from simultaneously duplicating stations' signals with those from a distant station.
(2)However, during the 2 -year period, FCC could issue orders protecting any station, wherever lo-
cated, if public interest so indicates-with burden of proof on station or FCC.
4 -TELEVISION DIGEST APRIL 22, 1963
(3) After 2 -year period, Commission would adopt whatever rules it believes are needed to protect pub-
lic interest.
It's understood that FCC & CATV negotiators have agreed that: (1) FCC should consider non -dupli-
cation for a CATV in light of whether similar non -duplication rules are imposed on satellites, boosters &
translators. (2) Commission should take into account fact that a station requesting CATV to carry its signal
may provide inadequate signal to replace that of distant station. (3) CATV needn't protect a station now
operating successfully in presence of CATV or a station in area which can't normally support a station.
What FCC staff recommends, then, is really flexibility to move in whatever direction Commission
believes necessary.
License fees were discussed by FCC last week, sent Can TV build a business? It has for Alberto-Culver,
back to staff for revision. Some commissioners objected firm's comptroller, Robert L. De Pauw, told brokers at
to fact that safety & special radio users would be paying Midwest Stock Exchange last week. Highlights of A -C's
about 3 times as much as broadcasters-about $2 million progress: (1) Toiletry -proprietary firm was launched in
vs. $600,000-yet it takes 3 times as much money to run 1955 with heavy TV ad campaign, has boomed ever since.
FCC's broadcast activities as its safety & special. FCC (2) A -C uses TV exclusively, spent a thumping $24.5
had been aiming to get about $5 million annually. One million for gross TV time last year, double 1961 level.
informed Commission source predicts it will end up getting (3) A -C considers TV "a conservative investment," puts
about $1 million-and could even abandon project. nearly 67% of every sales dollar into administrative &
Third International TV Symposium in Montreux, selling expenses but has average annual sales growth of
Switzerland, May 20-25, has broad spectrum of subjects, nearly 85% over previous year. (4) If current spending
including satellite TV, pay TV, color, video tape, remote in TV continues to grow, A-C will be in top 10 TV clients
control-many by U.S. participants. Dr. Allen B. DuMont, before firm's first decade of existence has finished. Said
De Pauw: "Our experience has taught us that with top
who will receive a citation, will present "Outlook into the
Future." Also on "Outlook" agenda is Henry R. Cassirer, product and top commercial, the more we advertise it on
UNESCO, Paris, discussing "Potential Role of TV in TV, the more we sell it."
Developing Areas." For complete program, write: Sym- "This is Monday; color it gold"-that could well be
posium International de Television, Case 97, Montreux. happy directive in NBC-TV Executive Coloring Book, if
Pay -TV spot check in Hartford reported in April 20 there was one. Early this season, red -ink Monday nights
TV Guide concluded that "dearth of live programming in
were something NBC sales executives sang the blues
sports, entertainment and cultural events" is weakness about; long run of program successes at CBS -TV, and
that could "finally mean, failure." Reporter found some even ABC-TV, skimmed off cream billings. Mid -season
disenchantment by pay -TV viewers over movie diet, said addition of Monday -night movie series and strong NBC
that dream of presenting Broadway plays and similar fare sales campaign changed all that. Now, NBC has fall
isn't likely to be realized because of multi-union problems "S.R.O." sign out on Mondays, with Timex and Purer
in show business. picking up The Hollywood Story following feature films.
Business is so good that 2 competing sponsors-GM motor -
Congress of Artists & Writers of Institute of Contem- makers Pontiac and Buick-have bought into Monday
porary Arts holds 5th annual meeting April 22-25 in movies, albeit with alternate -week schedules. Seven -pro-
Washington. Topic-"Mass Media and Mass Culture"- gram spread for Pontiac, incidentally, involves over $1
will be treated by: Charles Benton, Encyclopedia Britan- million in fall business for NBC.
nica vp; Samuel Gould, ETV WNDT N.Y. pres.; Robert
Saudek, Robert Saudek Assoc., N.Y., & former Omnibus Bite will be doubled by British govt. on commercial
producer -dir.; Gilbert Seldes, dean, U. of Pennsylvania's TV program contractors, if postmaster -gen. Reginald
Annenberg School of Communications. Bevins has his way. Last week, he uncorked amendment
to TV bill which would boost to $50 million govt. share of
Elizabeth Taylor color special-"Elizabeth Taylor's TV ad revenue, up from present $22 million. Bevins' pro-
London"-will be carried by CBS-TV 10-11 p.m. Oct. 6, posal in nutshell: Initial $3.5 million in ad revenue would
sponsored by Chemstrand, produced by TV Productions not be taxed, but thereafter tax bite would rise steeply to
of America. According to TPA's Norman Baer, she'll get top of 40%. Program contractors such as ATV and
highest fee ever paid to a performer for a single TV Granada meanwhile hit back with special memorandum to
show-reportedly $400,000-$500,000 for U.S. rights alone. members of parliament which stated 1962-63 profits will
Moot court competition, over WDKD Kingstree "ob- be off by some $11.5 milion anyway, and that new levies
scenity case" (Vol. 3:12 p5), was won by Harvard Law would virtually cripple smaller regional commercial firms.
School students arguing FCC's position. Supreme Court One immediate effect of moves & counter-moves: Commer-
Justice Byron White was among judges. cial TV stocks took sharp downward turn in London.
TV rights for 1964 summer olympics in Tokyo ac- NBC International has acquired "holding interest" in
quired by NBC. Games are scheduled to open Oct. 10, 1964. 3rd Sydney, Australia, commercial TV station, "Channel
NBC will present telecasts each evening, longer programs 10," due late 1964, operated by United Telecasters Ltd.
on weekends. NBC International holds 10% of CTQ Brisbane.
NEW SERIES VOL. 3, No. 16 TELEVISION DIGEST -5
Consumer Electronics
MANUFACTURING, DISTRIBUTION, FINANCE
UHF MARKET GUIDE SHOWS UPCOMING OUTLETS: What are the prospects for substantial
number of additional uhf stations coming on air before all -channel receiver manufacture becomes compul-
sory April 30, 1964?
We've compiled table showing status of all markets where uhf stations are now on air, authorized to
broadcast, or applied for (see pp. 8-9). It tells part, but not all, of story. It shows 83 areas where uhf stations
are on air, 69 where authorizations have been granted and 47 where uhf outlets are being sought but
haven't yet been granted.
Here's where uhf stands today: 116 uhf outlets now on air, of which 88 are commercial, 28 ed-
ucational. There are 80 uhf construction permits (CPs) outstanding -64 commercial, 16 non-commercial.
In addition, there are 67 applications for uhf stations-but these applications are for only 51 channels, of
which 53 are commercial, 14 reserved for non-commercial broadcasting.
Column 1 shows stations in operation-and you can easily pick out prime uhf markets on basis of
number of stations on air, such as Fresno, Peoria, Ft. Wayne, South Bend, Scranton -Wilkes-Barre.
Column 2 gives good indication of areas which will have uhf stations on air next. These areas have
construction permits outstanding, and stations can begin telecasting any time they wish. In these areas,
there are 29 authorized stations (indicated by t) which have been on air in past, but suspended operations
for financial reasons while holding onto their authorizations in hopes of starting up again when climate is
more favorable.
Some of these stations still have equipment and could go back on air virtually at turn of a switch.
But once burned, twice shy-and some of these operators are extremely reluctant to start up again before all -
channel set penetration is built up in their areas. And even with all-channel production virtually in sight,
some present stations may have hard time remaining on air. As recently as Feb. 15, FCC authorized Mont-
gomery, Ala. uhf to go dark for 3 months.
Column 3 shows areas where there are applications for uhf stations. You'll note that 10 of the chan-
nels (indicated by $) are contested, which means there are 2 or more applications for same channel by
different parties. This often leads to long-drawn-out hearings, even court action, before best -qualified party
is determined and station gets on air-varying from several months to years. There are shortcuts, however-
such as dropouts of applicants, mergers, interim operation of station by combined group. Nevertheless, this
area is imponderable in terms of time, and, of course, the more desirable the channel, the larger the market,
the more likely there will be competing applicants.
Channels which aren't contested are free to be granted by FCC, provided applicant is qualified.
How fast FCC will be, and how quickly permit-holders will get on air, is also unfathomable. However, in
many cases, uhf grantee has much to gain and little to lose by stalling while all -channel set circulation
builds up in his area.
It's still a guessing game, but based on past performance we'd be very surprised to see more than
30 new commercial uhf stations start between now and April 30, 1964-which means, by & large, uhf
markets for next 12 months will mostly be uhf markets already established today.
On pp. 8-9, you'll find status of uhf stations, grantees & applicants as of today. (If you find it impor-
tant to keep up with uhf station starts, grants & applications on weekly basis, we suggest our TV Addenda
service, which can be mailed to you weekly with your copy of Television Digest-rates on request.)
8-TELEVISION DIGEST APRIL 22, 1963
ALABAMA LOUISIANA
Decatur (1) Birmingham (1) Tuscaloosa (1) Baton Rouge (1)
Florence (1) Mobile (*1) MARYLAND
Huntsville (1) Huntsville (2)
Montgomery (1, *1) Montgomery (t1) Salisbury (1) Baltimore (1) Baltimore (1)
Tuscumbia (1)
MASSACHUSETTS
CALIFORNIA Adams (1) Cambridge -Boston (t1) Boston (.#1, Al)
Greenfield (1) Pittsfield (1)
Los Angeles (2) Corona (1) Guasti (1)
Springfield (2)
Bakersfield (2) (Los Angeles) (Los Angeles)
Worcester (1)
Fresno (4) Sacramento (t1) Sacramento (1)
Hanford (1) San Francisco (t1, 2) San Francisco (2) MICHIGAN
San Mateo (*1) Riverside (1)
(Fresno)
San Bernardino (1)
Detroit (1, *1) Detroit (1) Mt Pleasant (Al)
San Bernardino (1, *1) Saginaw -Bay City (1)
Visalia (1)
(Fresno) MINNESOTA
CONNECTICUT St Paul (Al)
Hartford (1, *1) Bridgeport (t1, *1) Greenwich (*1)
MISSISSIPPI
New Britain (1) New Haven (1)
Waterbury (1) Norwich (*1) Jackson (1) Hattiesburg (1)
Meridian (t1)
DISTRICT OF COLUMBIA
Washington (#1)
MISSOURI
Washington (1, *1)
Kansas City (Al) St Louis (1)
FLORIDA Poplar Bluff (1)
Miami (*1) Miami (t1) Melbourne (1) NEW HAMPSHIRE
St. Petersburg - Pensacola (.1.1) West Lebanon (1)
Tampa (1)
NEW JERSEY
GEORGIA
Asbury Park (t1) Burlington (1)
Atlanta (*1) Atlanta (t1) Atlantic City (t1) Glen Ridge (*1)
Chatsworth (* 1) Linden -Newark (1) Paterson-NYC (#1l
Columbus (*1) New Brunswick (Al)
ACTION FOR CONSUMER & DEALER PROTECTION GROWS: House Commerce Subcommittee
hearings this week, April 23-25, on HR -3669 Quality Stabilization & similar bills (Vol. 3:15p7), focuses atten-
tion on intensifying action at state & national levels by opposing groups to protect consumers from retailers,
retailers from discounters, discounters from fair -traders.
Onetime drugstore operator Sen. Humphrey (D -Minn.) picked up tempo of his fight against price
cutters by introducing bill to permit independent retailers to combine resources for joint ad campaigns.
FTC, of course, already is on record with view that joint ads by independent retailers offering same products
at same prices may be viewed as evidence of illegal price fixing. Sen. Humphrey contends that small mer-
chants can't "compete against giant chains & discount houses if they are not permitted to pool their limited
advertising resources."
On other side of fence, National Assn. of Consumer Organizations, which will oppose price -mainte-
nance legislation in April 25 appearance before House Subcommittee, told us last week of mushrooming
interest in planned representative organization for all low -margin retailers. NACO exec. secy. Roger Court -
land reported "15 to 20 new companies have indicated their support this week and we now expect some
40 to 50 major discount companies to attend our organization meeting April 29." Meeting will be at N.Y.'s
Savoy Hilton Hotel, not Stotler Hilton, as NACO originally announced. Among latest supporters are Almart,
Big Scot, GES, Mason Discount Dept. Stores. They join such leaders as GEM, Zayre, National Bellas Hess,
Maxam.
Action at state level is epitomized by Gov. Brown's appeal to California Legislature this month to
enact 25 different "consumer protection" bills. Among them: Establishment of an agency to "crack down hard
on cheating" by TV & other service technicians; new requirements on product warranties & guarantees; tight-
ening of statutes covering "false & misleading advertising." Gov. Brown summed up: "As a result of con-
fusing selling practices, not all consumers are spending their income wisely ... nor do they always get their
money's worth."
N.Y.'s State Legislature has just passed (Sr sent to Gov. Rockefeller for signing a bill that condemns
false advertising as a deceptive practice, squarely fixes responsibility on person who prepares it, and author-
izes Attorney General to apply to courts to obtain civil penalties.
We spoke with Charles W. Stickle, executive assistant to state's Attorney General, about rising con-
sumer complaints pouring into N.Y. State Bureau of Consumer Frauds & Protection. Complaints involving TV
10-TELEVISION DIGEST APRIL 22, 1963
sets, radios & phonos "have been substantial in the past," he said, and bureau will continue to press for
legislation to eliminate cause of complaints. Legislature failed to pass at its last session this month Bureau -
supported (1) Model Year Bill, which would require manufacturers to date model year on each TV set &
appliance, to pull teeth of dealers who pass off earlier models as latest; (2) Proposal to license TV technicians.
In Wisconsin, however, bill to license TV technicians has just been introduced. It would create
5-man Board of TV Technicians, appointed by governor, that would license technicians & administer ex-
aminations for new technicians. Bill also provides, among other consumer protections, restriction on use by
technicians of term "authorized" unless they actually have written authorization from TV manufacturers to
service their receivers.
Fair trade also made more news last week. "There's a much greater interest in the entire industry
in fair trade or some form of price stabilization than in many years," noted E. B. Barnes, sales vp of Ameri-
can Motors' Kelvinator Div. Fair trade program introduced by Kelvinator in California last June has produced
substantial increase in volume & gain in dealerships, he said. Kelvinator now is studying feasibility of ex-
tending fair trade to other markets in which "majority of dealers" express desire.
TV-RADIO PRODUCTION: EIA statistics for week ended April 12 (15th week of 1963):
Apr. 6-12 Preceding wk. 1962 wk. '63 cumulative '62 cumulative
Black & white TV 137,969 137,985 131,535 2,021,136 1,946,672
Total radio 332,909 350,536 365,624 4,886,122 5,363,117
auto radio 147,956 169,786 133,376 2,256,965 1,886,897
Zenith celebrates record first quarter with 2 -page TV set prices have dropped 7%, radios 9% since
trade ads making these claims, on basis of unit distrib- 1957-59, despite 15% rise in average wage level, noted
utor -to-dealer sales: (1) "B&w TV sales smash all first April 15 Wall St. Journal analysis of progress in automa-
quarter records-share of industry first again by a wide tion. "The phenomenon spotlights the other side of automa-
margin!" (2) "Zenith color TV sales double 1962 first tion, Journal emphasized, adding: "Much attention has
quarter-Zenith now in very dominant 2nd place and still been focused on how automation & other technological
gaining!" (3) "Zenith radio sales gain greater share of gains in manufacturing have deprived several million per-
industry-even greater than tremendous first quarter of
1962!" (4) "Stereo sales hit all-time first-quarter high
9 months since introduction of Micro -Touch [tone arm
- sons of jobs. But little light has been turned on the better
bargains for 19 million U.S. consumers-despite sharply
higher hourly labor rates." Analysis also points out:
were] highest 9 months in history!" "Price record has been achieved without cutting deeply into
First 16 -in. 90 -degree color set, measuring less than profit margins. After-tax profits per sales dollar of U.S.
17 in. from front to back, was announced in Tokyo by
manufacturers amounted to about 4.5% in 1962. That's up
Matsushita Electric for sale in Japan this summer at from 4.3% the year before. It compares with only 4.1%
in 1958."
around $550. Company presumably plans to export set to
U.S. under its Panasonic label. First Japanese 16 -in. set Sear's color S uhf promotions in N.Y.C. market, as
was shown recently at IEEE show in N.Y. by Toshiba, but featured in recent advertised specials: Color set, with
this model had deep 70 -degree tube (Vol. 3:13 p8). 90 -day free home service and one-year parts warranty,
$399. All -channel 19 -in, slim portable b&w set, $128. Both
FM -stereo table models are gradually moving into
sets were featured in area retail stores, don't reflect
lower price range. Zenith last week broke trade ad cam-
catalog prices.
paign for its new compact unit at $139.95 ($149.95 with
walnut -grained cabinet). New FM -stereo and AM radio Matsushita Electric will use TV for first time to pro-
is Zenith's first with hinged speaker doors, can be played mote its Panasonic TVs, radios, tape recorders. Ad cam-
with doors open, closed or removed from cabinet for paign opens June 1 in Boston, Cleveland, Pittsburgh &
greater separation. Baltimore;company is seeking time in N.Y. & Chicago.
Transistorized electronic ignition system for cars & New multi -set couplers introduced by Blonder-Tongue:
trucks was unveiled at International Automobile Show in Color -4, designed for color reception in systems with up
N.Y. by Motion Inc., subsidiary of Tung -Sol, at $59.95. to 4 sets ($9.95) ; Set -2, all-channel coupler for 2 -set
Motion also announced that its earlier capacitive discharge systems ($3.20).
electronic ignition system is now available for cars & RCA's new lines of color & b&w TV, radios, phonos
trucks. and tape cartridge recorders will be introduced to distrib-
Ban on FM radio sets on civil aircraft was made utors May 15-17 at Riviera Hotel, Las Vegas.
permanent by FAA because, it said, they can interfere Admiral is enlarging its Canadian TV -radio-appliances
with navigation instruments. Temporary ban started May plant at Port Credit, Ont., will complete new addition-
1961. its 5th-in June.
NEW SERIES VOL. 3, No. 16 TELEVISION DIGEST -11
Trade Personals RCA Posts Record Quarter: RCA opened 1963 with
Jan. -March sales & profits greatest of any quarter in
Dr. Elmer W. Engstrom, RCA pres., will address its 44 -year history (see financial table). Profits jumped
opening day luncheon of SMPTE convention April 22 at 19% to $17.3 million from year-earlier's record $14.5 mil-
Atlantic City on "Horizons in Electronics." lion on 3% sales gain to $436 million from record $425
Mark W. Cresap Jr., Westinghouse pres., is member million. NBC also scored peak first-quarter sales & profits.
of 5 -man businessmen committee, chaired by Ford Motor "Color TV was among the most significant elements
Chmn. Henry Ford II, that will work on new tax bill for in first-quarter earnings, with sales of color sets & serv-
Administration. ices moving at a pace reminiscent of the early growth of
b&w TV," Chmn. David Sarnoff & Pres. Elmer W. Eng-
Lynn L. Long named Sylvania Tube Div. sales admin- strom noted. Over-all TV sales set first-quarter record,
istrator. they added (Vol. 3:15 p10) .
Edgar H. Griffiths appointed RCA International Div. "We anticipate that RCA's sales & earnings, subject
international finance vp, a new post; Erwin Schuller to the continued vigor of the national economy, will main-
named international financial advisor effective April 30, tain their upward movement in an environment of expan-
serving as consultant to RCA & subsidiaries. sion for electronics as a whole," Sarnoff & Engstrom
Allan Gardner, Wells -Gardner vp & sales mgr., elected emphasized.
a dir., succeeding late Henry C. Bonfig ... Charles Mauer
named Sony Corp. of America national service mgr., Con-
Mergers & acquisitions: ITT and Bell & Gossett Co.,
sumer Products Div., a new post.
Morton Grove, Ill. maker of pumps, heating & refrigera-
Joel P. Smith named Jerrold Electronics' Community tion equipment, have agreed to merge. Subject to approval
Antenna Systems Operations Div. mgr., replacing Daniel of Bell & Gossett stockholders & certain conditions, ITT
Aaron, resigned; Joseph J. Kontuly appointed asst. ad & would pay some $47.8 million for assets by issuing 696,422
sales promotion mgr. shares of ITT common & 145,487 shares of cumulative
Paul Smith, Esquire Radio vp, elected a dir. of par- convertible preferred for Bell & Gossett's 2,078,385 out-
ent Esquire Radio & Electronics. standing common shares Ling-Temeo-Vought now owns
27.5% of Seam Instrument Corp.'s 3,448,608 shares, fol-
Richard A. Campbell named operations vp of Thomp- lowing merger of latter with Iformation System Inc.,
son Ramo Wooldridge subsidiary TRW Electronics; Thom- Skokie, Ill. maker of electronic & control equipment for
as M. Fitzgerald appointed vp-gen. mgr. of Pacific Semi- industrial automation systems. L -T -V owned 61% of
conductors, 90% owned by Thompson Ramo Wooldridge. Information Systems prior to amalgamation with Scam,
Charles Grove, Grove Refrigeration & Air Condition- Chicago manufacturer of enunciator & signaling systems
ing vp, elected pres. of NARDA's Ohio Chapter. o Sylvania has sold to Hupp Corp. its 85% interest in
J. D. Winer resigns as Capehart chmn. & a dir.; Dr. Golden Shield -Puerto Rico, its TV -radio distributor there.
Joseph H. Vogelman, research, development & engineer- Sylvania sold its majority interest in parent Golden
ing vp, appointed a dir.; Leonard J. Schwartz, field engi- Shield Corp., Great Neck, N.Y. early last year (Vol. 2:2
neering dir., appointed a corporate vp. p8). Latter will retain its interest in Puerto Rican branch.
Eric C. llerud, onetime asst. chief engineer for Du Motorola's first-quarter earnings dropped "upwards
Mont TV Network, named mgr. of Du Mont Labs' new of 50%" from year-ago's $2.5 million despite sales rise
Medical Instrument Dept. from 1962's March -quarter volume of $77 million, Pres.
Robert W. Galvin reported. He attributed profit drop to
David M. Beckerman named Radio Shack Retail Div. & stepped -up investment in color TV, preparations to pro-
operations gen. mgr., succeeded by Ernest Kalinish as ad duce color picture tube, and start-up costs for 15 new
mgr. products introduced by Semiconductor Div. Despite down-
beat opening quarter, Motorola expects profit decline to
Distributor Notes: Westinghouse names Charles Ross reverse in 2nd quarter, foresees record earnings in 3rd.
TV, radio, major appliance regional mgr. for eastern Pa.,
Galvin said Motorola & National Video will introduce new
N.J., Md., Del., Va. & D.C., succeeding Leo Cronson, who color tube this summer. Re new semiconductor products,
retires May 1 after 30 years with company TV Develop- he said: "We consider each one of these a major develop-
ment appoints Ralph E. Walker district sales mgr. for
ment of its own, but each required very expensive engi-
northern Ill. & eastern Wisc., headquartering at 1929 N. neering, installation & pilot runs."
Newland Ave., Chicago © David Brody, ex -John M. Otter
Co. vp-gen. sales mgr., named Philadelphia -area rep for Entron Inc., Silver Spring, Md. manufacturer &
Grundig-Majestic Sharp Co. appoints W. A. Rieh Co. owner of CATV systems, posted record sales of $2,679,490
(1711 West Roosevelt, Phoenix) Arizona distributor for for year ended Feb. 28, an increase of 97% over preceding
TV & home entertainment lines. year. Net income was $137,317 compared with loss of
$373,792 for preceding year. Earnings equalled 50¢ a
share on 272,135 shares vs. loss of $1.37 per share in prior
Admiral has kicked off $1.2 million 2nd quarter ad year.
campaign for TVs, radios, phonos, appliances. First-
quarter ad spending totaled $1.8 million. Consumer ability to pay past -due bills declined during
Jan. -March for 2nd consecutive quarter, American Col-
Fisher Radio is advertising free offer to consumers, lectors Assn. reported. ACA's index, keyed to 1953 base
40 -page "Fisher Handbook-An Authoritative Guide To of 100, showed decline to 97.1 from 97.2 a year ago & 98.8
Custom Stereo." in 1962's final quarter.
12 -TELEVISION DIGEST APRIL 22, 1963
Per
Pre -Tax Common
Company Period Sales Net Earnings Common
Earnings Shares
Share
CTS Corp. 1963 -year to Mar. 31 $ 28,867,246 $ 2,217,710 $ 2,222,526 $1.50 1,482,003
1962 -year to Mar. 31 23,700,815 2,162,406 2,021,505 1.40 1,447,003
1963-qtr. to Mar. 31 7,293,933 567,714 619,149 .42 1,482,003
1962 qtr.to Mar. 31 6,672,486 495,404 550,014 .38 1,447,003
Electronic Specialty 1963 -qtr.
to Mar. 31 16,753,006 1,049,788 574,788 .40 1,440,557
1962 -qtr.
to Mar. 31 14,999,886 987,224 589,224 .41 1,440,557
GT8E 1963 -qtr.
to Mar. 31 332,479,0003 22,060,000' .29 75,264,000
1962 -qtr. to Mar. 31 317,906,000 18,162,000 .25 73,470,000
Macfadden-Bartell
P. R. Mallory
1963 -qtr. to Mar. 31
1962 -qtr. to Mar. 31
1963 -qtr. to Mar. 31 24,441,022 1,833,888
48.3,651
(136,458)
864,221
-
.30
53'
1,593,482
1,593,482
1,617,353
1962 -qtr. to Mar. 31
MGM 1963-28 wks. to Mar. 14
1962-28 wks. to 11ar. 14
24,506,709
70,114,000
70,766,000
2,259,462 1,074,321
(8,716,000)
2,553,000
-
.66'
1.00
1,501,843
2,569,229
2,545,229
Metromedia 1963 -qtr. to Mar. 31 13,527,470 703,283' .40' 1,715,044
1962 -qtr. to Apr. 1 12,270,314 138,732` .07' 1,707,057
Movielab 1962 -year to Dec. 29 6,5-19,244 555,778 292,278 .86 341,010
1961 -year to Dec. 29 5,810,577 520,974 2 79,4 74 .82 341,010
Muter Co. 1963 -qtr. to Mar. 31 4,172,531 212,126 104,561 .08 1,257,695
1962 -qtr. to Mar. 31
Paramount Pictures 1962 -year to Dec. 31
1961 -year to Dec. 31
4,132,740
106,286,000
115,514,000
150,059 72,701
(3,410,000)
5,668,000
-
.06'
3.35
1,199,094
1,681,681
1,684,481
RCA 1963 -qtr. to Mar. 31 436,000,000' 35,300,000 17,300,000' .95 17,364,000
1962 -qtr. to Mar. 31
Story on p.11
Raytheon 1963 -qtr. to Mar. 31
1962 -qtr. to 11Iar. 31
425,000,000
126,409,000
15 7,334,000
28,900,000
4,146,000
5,219,000
14,500,000
(1,434,000)`
2,499,000
-
.81
.60
16,913,000
4,124,558
4,013,754
Texas Instruments 1963 -qtr. to Mar. 31 59,797,000 5,376,000 2,455,000 .61 3,948,238
1962 -qtr. to Mar. 31 57,483,000 4,663,000 2,411,000 .60 3,945,613
Vornado 1963-6 mo. ta Feb. 28 78,313,968 2,438,654 1.86 1,310,593
1962-6 mo. to Feb. 28 57,081,325 1,936,843 1.48 1,310,593
1963 -qtr. to Feb. 2S 39,420,646 1,415,450 1.08 1,310,593
1962 -qtr. to Feb. 28
Wells -Gardner . 1963 -qtr. to Mar. 31
1962 -qtr. to Mar. 31
28,8 78,919
3,764,000
4,380,000
1,0 72,914
(53,000)
62,000
-
.82
.15
1,310,593
422,400
422,400
Westinghouse 1963 -qtr. to Mar. 31 489,742,000' 23,588,000 12,588,000 .34' 35.633,070
Story below 1962 -qtr. to Mar. 31 460.466.000 21.178.000 11.778.000 .32' 35.618.153
Notes: ' After preferred dividends. 'Adjusted to reflect Jan., 1963 ing out East Coast semiconductor operations (VoL 3:10 p101. ' Before
5% stock dividend. 3 Record. After special 63.350.000 charge for phas-
4 $2.6 million gain on sale of
certain assets.
Westinghouse Nets Record Sales: Although Westing- Magnavox, which posted record 1962 sales & earnings
house previously predicted 1963's opening quarter would be
poorest of year in sales & earnings (Vol. 3:14 p15), Jan. -
March returns showed record sales & new orders and 7r,;
(Vol. 3:12 p11), closed year with total current assets of
$74,869,597 vs. total current liabilities of $35,742.165
compared with $61,264,229 & $28,550,535 at end of 1961.
-
boost in profits (see financial table). Sales climbed 6.4'; Cash increased to $8,725,539 from $5,860,151. Accounts
to peak $489.7 million from $460.5 million in 1962's receivable rose to $19,329,546, plus $11,495,778 due from
March quarter. Earnings rose to $12.6 million from $11.8 govt. & other defense contracts, from $14,579,454 plus
million. Backlog jumped 22%, highest since end of 1953. $10,442,634. Finished goods inventory was valued at
Some consumer goods lines were among those that pro- $ 7,871,095 vs. $6,914,582 a year earlier. Earnings retained
duced billings increases, Pres. Mark W. Cresap Jr. re- & invested in the business totaled $27,348,906 vs.
ported. Electronic components also recorded gains. Earlier, $19,075,530 at 1961's close.
he had told annual meeting that March quarter's perform- P. R. Mallory has retired its preference stock, no
ance "won't reflect the profit -producing capability for the longer has any outstanding equity securities senior to its
full year." common shares. In response to its redemption call last
Republic Corp. anticipates that sales & earnings in Feb. for its 73,131 preference shares, company has con-
fiscal -1963's 2nd quarter, ending April 30, will be "sub- verted more than 97%, or 71,209 shares, into 86,082 com-
stantially ahead" of year-ago's $11.2 million revenues & mon shares. Redemption & fractional -share payment to-
$559,632 profits. taled $105,449.
VAB
V
WEEKLY Television Digest With
Consumer Electronics . .. (starts page 7)
NEW SERIES VOL. 3, No. 17
APRIL 29, 1963
The authoritative service for executives in all branches of the television arts & industries
ANNENBERG $1.5 MILLION ETV GIFT-complete facilities of WFIL-TV MORE RECORD QUARTERS: Magnavox & Zenith open 1963 with new
Philadelphia going to WHYY-TV in Fall when Triangle stations move highs in both sales & earnings; Zenith Chmn. Hugh Robertson reports
to new plant (p. 5). upbeat business, puts April volume $3 million ahead of 1962 (p. 11).
ing process is "immune from laws of libel & slander," that group turned down Nielsen's offer of witness
to refute charges by 3 former field men. At least 2 Subcommittee members-one Democrat, one GOP-say
they'd like to see Nielsen Jr. on stand. Subcommittee meets today (29), will decide next moves-when to call
next witnesses, consultation with FTC, FCC & Justice Dept., etc.
Harris is in no rush. As we indicated (Vol. 3:16 pl), he's giving industry chance to come up with
corrE 2tive moves before making his recommendations. Staff investigator Robert Richardson is back from
vacation and, with chief counsel Charles Howze, will start on report due for release this summer.
Nielsen's meetings with clients in N.Y. April 24-26 were similar to Chicago session (Vol. 3.16 p2).
About 350 agency, advertiser & network brass attended closed Summit (Hotel) meetings. Nielsen Jr. & Exec.
vp Henry Rahmel answered questions after Nielsen's delivery of "The Researcher Replies." Questions covered
sample size, editing, field supervision, Audimeter installation, inclusion of Mountain Time Zone, etc.
Some advertisers were interested in paying for larger samples to get more reliable demographic data
-though some agency spokesmen reportedly were opposed. Nielsen is planning to call news conference
May 1, is expected to announce speedup in installation of new sample, based on 1960 census. Harris
Subcommittee charges that sample has changed little since 1947.
NAB Pres. Collins, speaking before Advertising Federation of America meeting in Orlando last week,
asserted: "It is not too late for us to put this part of our house in order before the govt. insists upon doing
the job for us."
NAB Research Committee meets today (29) in Washington to prepare outline of final plan for per-
manent audit & standards group, for report Pres. Collins will submit to NAB boards & Harris. Working with
NAB committee are network researchers, academicians, allied trade groups. NAB audit plan will call for
"joint effort."
NO FCC-NCTA AGREEMENT ON CATV LAW: The major point of dispute between FCC & NCTA
over prospective federal legislation (Vol. 3:16 p3) remained unresolved last week-but it may not be a hope-
less deadlock.
FCC voted unanimously April 22, accepting staff's recommendation that proposed law leave Com-
mission free to impose regulations on CATVs in communities with more than one station. This word was
passed to NCTA board, which met in Washington next 2 days. But board didn't throw up its hands and go
home. It decided to study exactly what would happen-economically, technically, practically-if FCC's
proposal were law-give Commission its findings. Committee headed by Archer Taylor, Missoula, Mont.,
has the job. Then, another committee, headed by A. J. Malin, Rochester & Laconia, N.H., has duty of con-
tinued liaison with Commission. According to one member attending board meeting, "there's the glimmer
of hope." Another said: "There's more maturity of thinking in the group than I've ever seen before."
Canadian TV-radio regulators are getting worried about CATV, too. Board of Broadcast Governors
has called June 4 hearing in Ottawa, stating: "The Board's concern centers around the fact that broadcast-
ing stations, as a condition of license, are directed by law to achieve certain national purposes. Distribu-
tion of programs by cable system is not so directed." Because of "vital nature" of hearings, BBG said, it's
arranging to broadcast sessions on TV & radio.
Much aroused by BBG leanings, National Community Antenna TV Assn. of Canada (3010 Bloor
St. W., Toronto) is gearing for battle, giving subject top billing at annual May 7-10 convention in Ottawa.
Like it or not, industry is adjusting itself to fact that more & more broadcasters are deciding to control
& profit from CATV instead of fighting it. Though FCC, Congress & CATV interests can't yet agree on fed-
eral legislation-most observers believe CATV will be put under Commission's wing sooner or later. Fact is,
CATV won't go away-because it brings more services to more people, and public is willing to pay for it.
No one has attempted a complete compilation of TV -radio operators who have CATV interests.
Herewith, on p. 3, is our starter-and we invite additions, deletions & corrections to increase its authoritative-
ness. In some cases, cross -ownership may be minor. We're also including former broadcasters-believing
they're no less illustrative of trend.
NEW SERIES VOL. 3 No. 17 TELEVISION DIGEST -3
Radio KOJM Havre, Mont. Havre, Mont. KTBC-TV-AM-FM Austin, Tex.; KWTX- Austin, Tex. (franchise).
(Charlotte Braden). TV-AM Waco, Tex.; KXII Ardmore,
Okla. (Mrs. Lyndon B. Johnson).
Radio KPRK Livingston, Mont. Anaconda, Big Timber, Butte, Dil-
(Paul McAdam). lon, Helena, Lewistown, Livingston, KTRE-TV-AM Lufkin, Tex.; KLTV Lufkin, Tex.
(Station being sold) Miles City, Mont. Tyler, Tex. (Marshall Pengra).
Radio WWNH Rochester, N.H. Laconia, N.H. Kerns -Tribune Corp., part-owner of Elko, Nev.
(Albin Malin). KUTV Salt Lake City.
(J. W. Gallivan).
Fortnightly Corp., N.Y., buying Clarksburg, Fairmont, W. Va.
WBOY-TV Clarksburg, W. Va. Radio KXRO Aberdeen, Wash. Aberdeen, Montesano, Wash.
(Nathan Levin). (Fred Goddard).
UHF PROSPECTS & PITFALLS: A uhf enthusiast who looks for solid growth over long haul is Washington
consultant David L. Steel, pres. of Assn. of Federal Communications Consulting Engineers. We asked him
about do's & don't's last week, got these points:
(1) "We need a good 3 -or 4 -position converter, and it should look good. These continuous tuners are
difficult for the average person to tune. You've got to make it easy for them."
(2) "Transmission facilities must be first class. You remember that some stations started with 100 -
watt transmitters in the early '50's? Their service areas were garbage dumps-and some of them are still
garbage dumps, even though the power was increased. The public never got over it. Give them plenty of
power. The extra cost of adequate facilities is peanuts compared with the cost of operation. The savings
made possible by the FCC's relaxation of technical standards don't mean much-maybe for satellites, but
not for basic installations."
4 -TELEVISION DIGEST APRIL 29, 1963
"There ought to be a law on all-channel receiving lead-ins. They ought to make everyone install
(3)
good lines. Twin leads are for the birds on uhf-particularly in bad weather."
(4) "Uhf receiving antennas hold up surprisingly well, better than vhf. They're compact. Vhfs are
long and often flimsy, breaking down in wind & ice."
(5) "I'd like to see pre -amps on receiving antennas. Mass production could bring the price down."
(6) "I don't see need for a final amplifier at the transmitting antenna, as some people advocate.
With a good transmission line-more expensive, true-you can get 85% transmission in 1,000 ft., about the
same as vhf. Go first class if you're going at all."
Steel predicts that about 100 uhf applications will be filed this year, and that 1964 will be the big
year of construction. He's impressed with stature of current applicants, notes that most can stand gaff of
several years' losses.
What really gripes Steel, however, is FCC slowness in acting on applications. "Applications sit there,
in the clear for months-until someone files on top of them, delaying grants for years. You can examine one
of these applications in minutes and tell whether it's grantable or not. I appreciate the fact that FCC has other
things to do, but there are people ready, willing & able to get on the air-if given a chance. You've got to
have at least 2 uhfs in a city."
Steel is member of FCC-sponsored Committee for the Full Development of All -Channel Broadcasting,
looks for impressive results. Committee on Consumer Information met in Washington last week, heard those
master promoters-FCC Comr. Lee & EIA's Sandwick-describe plans for dealer-servicemen symposiums in
N.Y. & Chicago. N.Y. session is set for May 14 at Carnegie Hall, leading off with Mayor Wagner & Lee.
Chicago meeting is planned for July 22, at Palmer House, during convention of National Assn. of Music
Merchants.
N.Y. symposium will be moderated by WNYC-TV's Seymour Siegel, includes: Harris Wood, Philco;
Lee's engineering asst. Robert Weston; Jack Warganz, Knickerbocker Distributing, Long Island City; Ed
Cicchetti, CSI Electronic Servicing, Flushing. FCC Comr. Henry will present plaque to outstanding N.Y. all-
channel -set retailer. Chicago details are yet to come.
Technical Development Committee met in N.Y. last week, established 5 task groups, gave them 18
tasks: (1) All -channel sets, Harris Wood, Philco, chmn. (2) All-channel receiving antennas & antenna systems,
Jack Beever, Jerrold, chmn. (3) Uhf transmitters & studio equipment, Harold Towlson, GE, churn, (4) Uhf trans-
mitting antennas & systems, Wayne Masters, Melpar, chmm. (5) Over-all systems & FCC rules (coordinating
other 4), Charles Hirsch, RCA, chmm.
Unusual new CATV operation is that planned by Vin- NAB study committee, to weigh concept of setting up
cennes U., Vincennes, Ind. As a state agency, it has sold a program department (Vol. 3:13 pl) , has been appointed
$770,000 worth of 5.%<70 bonds to investment firm of Good- by Pres. Collins: From TV board-Joseph Baudino, West-
body & Co., to finance new systems in Vincennes & Wash- inghouse (co-chmn.) ; John Dille, WSJV South Bend -Elk-
ington, Ind. Another bond issue is planned to finance sys- hart; Eugene Thomas, KETV Omaha. From radio board:
tems in Lawrenceville & Bridgeport, Ill. University had Allan Page, KGWA Enid, Okla. (co-chmn.) ; Harold Es-
retained management consultants Howard S. Frazier Inc. sex, WSJS Winston-Salem; Cecil Woodland, WEJL Scran-
to see whether Vincennes could support combination com- ton. Proposed department, Collins said, would "develop
mercial -ETV station. Frazier judged that it couldn't-but studies & aids to improve the expertise of NAB's radio &
CATV was recommended as source of income for pure TV members and also would serve as a central source in
ETV station-and school has asked FCC to reserve Ch. 52. an exchange of program information & ideas which have
In 6 years, Frazier estimates, Vincennes will have 4,900 proven successful." First meeting is May 2.
subscribers, Washington 3,125. Frazier, incidentally, re- Fine of $1,000 has been ordered by FCC for radio
ports his firm working on 18-20 systems in various stages KRSD Rapid City, S.D.-for operating with defective re-
of planning-including Fayetteville, N.C., where city mote control equipment and for failing to inform FCC
council has voted tentatively to franchise local group. when corrections were made.
NCTA reports following new members: Long Island Cable
Vision Corp., Bayside, N.Y.; Cablevision of Va., Coving- ABC-TV network & owned stations appoint C. J.
ton, Va.; Lee County TV, Beattyville, Ky.; Dryden Com- LaRoche & Co. to handle advertising, succeeding Doyle
munity Antenna Corp., Dryden, N.Y.; Okaloosa TV Cable Dane Bernbach.
Co., Ft. Walton Beach, Fla.; Flora TV Cable Co., Flora, Sale of WREC-TV-AM Memphis, from Hoyt B. Wooten
Ill.; Owsley Co. TV, Booneville, Ky.; Laverne TV Cable to Cowles Bcstg., for $8 million, has been approved by
Co., Laverne, Okla. FCC.
NEW SERIES VOL. 3 No. 17 TELEVISION DIGEST -5
RATINGS REVERBERATE AT 4A: Fallout from rat- Annenberg $1.5 Million ETV Gift: Complete facil-
ings explosion triggered by Chmn. Harris's House hear- ities of Triangle Publications' WFIL-TV (Ch. 6) Phil-
ings could be easily detected at annual 4A meeting last adelphia, worth about $1.5 million, are being donated to
week at W. Va.'s Greenbrier. Voiced publicly in speeches ETV WHYY-TV, which now operates on uhf Ch. 35, holds
or discussed informally during coffee breaks and cocktails, CP for vhf Ch. 12. WFIL-TV is to move in Fall to new
rating question vas very much on mind of top brass of plant at City Line & Monument Ave., turning 46th &
nation's leading ad agencies & media guests. Market St. facilities over to ETV at that time. New
Keynote speech by Marion Harper Jr., head of Inter - WFIL-TV will also house radio WFIL and all Radio &
public (McCann-Erickson) & retiring chmn. of 4A, put TV Div. offices.
immediate spotlight on problem at opening -day (25th) Said Walter Annenberg, Triangle pres.: "I couldn't
lunch. Reaction stirred by Harris hearings, Harper said, think of a better use for the facilities. The difficulties of
was "excessive," and was leading to "misunderstanding educational TV in New York, I believe, highlight the need
of the nature of good research practice." Failures, he for people to step out and help educational TV." Gift is
added, arose "when design of the research project is largest of its kind to date.
poorly related to its purpose."
Joint research activities involving advertisers, agen-
cies media were, in his opinion, "doomed to failure" since
& Dormant newspaper -monopoly investigation by Rep.
they evolved "techniques that are compromises" and put Celler's (D-N.Y.) Judiciary Anti-trust Subcommittee is
prime focus on "participating interests" rather than due to resume in June. Celler originally announced there'd
knowledge to be uncovered. be 4 continuous weeks of hearings, but he became ill; now,
Harper also warned against "the organization of a he plans civil rights investigation before resuming news-
govt. research system" which, he said, "could be used to paper probe. Publishers with broadcast holdings will be
support a policy after it was no longer a reflection of asked to testify at resumption. Also on tap is Prof.
people's preferences." Harvey Levin, Hofstra College, author of book Broadcast
Real progress in research, Harper said, will be Regulation & Joint Ownership of Media-generally op-
achieved mainly "by individual practitioners when they're posed to TV-newspaper combinations. Dropping of com-
free to develop their own techniques and to succeed or fail peting newspapers in Los Angeles by Hearst & Chandler
in the business marketplace." was a major stimulus for investigation; now, it's under-
C. Wrede Petersmeyer, pres. of Corinthian Bcstg., stood Justice Dept. is studying history of Los Angeles
said he felt that a major problem in audience research Newspaper Publishers Assn., looking for anti-trust viola-
involved specialized breakouts of information, which "be- tions in exchanges of advertising & editorial information
come less reliable as you go further into the data." He among publishers.
sided with Harper in wanting to keep govt. out of re-
search business, and he told us: "A govt. attack on ratings NBC bought TV -radio rights for NFL championship
is a step toward govt. control of programming. Relation- game Dec. 29 for $926,000; for each of last 2 years it paid
ship of ratings to programming is same as relationship of $615,000. NBC has been carrying game since 1955. CBS
a thermometer to a patient. Ratings don't control program- carries regular season games, paying $4,650,000 a year.
ming; it's programming that controls ratings. I feel there NBC also signed Gulf Oil to full TV -radio sponsorship of
are forces in govt. which would like to do away with the 1964 national conventions & elections at reported $3.5 mil-
indices of programming which reflect popularity of certain lion. At same time, Gulf renewed for 4th year sponsorship
entertainment shows like Beverly Hillbillies. It's not a of NBC News specials, at estimated $1.5 million.
matter of improving ratings; it's an attempt to superim- New stereo modulation monitor-claimed a "first"-
pose governmental program thinking through an attack introduced by Collins. It measures main channel, sub -
on ratings." channel, pilot carrier, SCA carrier insertion, stereo sep-
In other 4A news areas, members approved public aration, cross-talk, pilot phase. It provides stereo &
ownership of 4A agencies (which have increasingly sought monaural output for proof of performance, has output
outside capital) "as long as the employes are in effective connections to measure AM noise & distortion. Collins also
control," but voted to prohibit any ownership of ad media introduced new stereo limiting amplifier.
-including large holdings in broadcast firms by agencies.
Arthur E. Tatham & Norman H. Strouse, chmn. of Tath- Errata: Following changes should be made in pocket
am-Laird & pres. of J. Walter Thompson, respectively, directory of stations issued as Special Supplement with
were elected chmn. and vice-chmn of 4A, with Tatham Vol. 3:15: Add WOOK-TV (14) to District of Columbia;
succeeding Harper. add WTEV (6) to Providence, R.I. (New Bedford, Mass.) ;
add WJMY (20) to Allen Park (Detroit), Mich.; delete
WNTA-TV, New York -Newark; change channel of
Transcontinent TV sale to Taft Bcstg. & Midwest TV WJAR-TV Providence to (10).
didn't come up for formal discussion at TTC stockholder
meeting last week in Buffalo. And here's why: Negotia- National spot radio totaled $201,575,000 in 1962, a
tions are said to still be in progress; special stockholder 2.1'c increase over 1961's $197,350,000, according to Law-
meeting will be called when board believes shareholder rence Webb, managing dir., Station Representatives Assn.
action is necessary. Incidentally, there's no bar to con- He also reported that SRA & RAB plan to compile spot
tingency of Midwest purchase on Taft's-in FCC pro- radio dollar volume by market.
posed rule-making (Vol. 3:16 p4). Contingency involved License fees are due to be finalized by FCC in week
in FCC proposal would affect multiple owner planning to or so-TV-radio charges unchanged from last proposal
buy & sell simultaneously while remaining within FCC (Vol. 3:13 p2), safety & special services to be cut some-
ownership ceiling. what. Total take is estimated at $3.8 million annually.
6-TELEVISION DIGEST APRIL 29, 1963
EDITORIAL NEW YORK OFFICE Electronics chief engineer, named exec. vp-engineering
ALBERT WARREN, 580 Fifth Ave. dir., CCA Electronics.
Editor & Publisher New York 36, N. Y.
JONAH GITLITZ, Circle 6-2215 Quentin L. Ifarvell promoted to vp-administration,
Managing Editor, TWX: 212-640-6938 Mae Keenan to club service administrator, Advertising
Television Digest DAVID LACHENBRUCH, Federation of America . . . Serge T. Topper elected vp,
PAUL STONE, Editorial Director Mort Bassett & Co.
Editorial Director, CHARLES SINCLAIR, John Mankin, mgr., promoted to vp-gen.mgr., Tyler
Television Factbook Contributing Editor
VIRGINIA SNOWDEN,
& Jacksonville, Tex. CATV systems . . Billy I. Boss, So.
Managing Editor, Ill. U., elected pres. of Alpha Delta Sigma, professional
PHILADELPHIA OFFICE
Television Factbook
111 Beverly Rd.
advertising fraternity.
BUSINESS Overbrook Hills
EDWARD M. KELLY, Philadelphia 51, Pa. Obituary
General Manager Midway 2-6411
RUDOLPH SAPPER, HAROLD RUSTEN, David B. Stillman, 57, Seven Arts Productions pres.,
Circulation Manager Associate Editor died April 25 of heart failure at Westport, Conn. home.
TELEVISION DIGEST. Published Mondays. Services: $75-$150 annually. Prominent theatrical attorney, he was named to Seven Arts
For group rates & other subscription services, write Headquarters. post when company was reorganized in 1960. He served as
TELEVISION FACTBOOK TV & AM-FM ADDENDA general counsel for numerous motion picture & TV ven-
Published Annually Published Saturdays tures, including late Mike Todd's "Around the World in 80
AM-FM DIRECTORY Days." He is survived by wife, son, brother, 2 sisters.
Published Annually
newly -formed research & development council, National turned as incomplete, FCC denying waiver seeking delay
Community TV Assn. . . Robert G. MeHendrix, ex -pro- in submission of details.
NEW SERIES VOL. 3 No. 17 TELEVISION DIGEST -7
Co11stim-r E1ectroi 0 4
INDUSTRY GROPES WITH RADIO RIDDLE: What's happening to radio? Why is it happening?
What's the cure? Industry's top marketing minds are pondering this puzzle, with little agreement-and not
even many opinions. In an industry usually given to glib answers & voluble explanations, many are now just
saying "I don't know."
At present, there's more mystery than misery in radio's sudden decline at marketplace-TV is sell-
ing well; phono sales are excellent; even radio's drop is large only when compared with 1962 (sales are
only 3% below first quarter 1961). Inventories have been cut sharply in line with sales dip.
Here are facts to date about domestic -brand radios: For first 16 weeks of 1963 (through April 19),
distributor -to-dealer sales are about 14% below last year's similar period. For first quarter, sales totaled
about 1,902,000, some 13% below the 2,177,998 of first quarter 1962. Jan. sales were off 20%, Feb. 13%,
March 9%, compared with 1962, and preliminary reports for April indicate fall -off has increased from March.
Factory & distributor inventories as of April 1 were down 13% from year-ago levels.
Transistor radios are leading the decline-but it extends almost across-the-board. One set of estimates
for first quarter has miniature radio sales down only 10% from last year's same period, personal size sets
down 45%, AM table models down 29% and FM & FM clock radios down 18%. Industry production has
been trimmed by about 25% from last year's figures. At same time, imports of transistor radios are set-
ting new records.
Imports, radio saturation, lack of profit, bad weather-all get at least partial blame as industry lead-
ers try to figure out what's really going on. They're frank to admit they have no pat answers-but here are
some appraisals of situation from top manufacturers:
One large radio manufacturer, who requested anonymity, blamed "competitive circumstances, the
volume of merchandise on the market and the Japanese increasing their share of the market." However,
he said, "no big trends are discernible and we don't regard the situation as basically serious from the
long-term point of view."
Imports come in for major share of blame by Emerson Pres. Benjamin Abrams and others. Says
Abrams: "There's nothing the matter that couldn't be cured if we stopped importing Japanese junk. If
you include imports, radio business isn't bad as a whole. It has reached saturation because of low prices
in the transistor field. Our table & clock radio sales are ahead of last year. But remember-if a person buys
an imported set at $5.99, he's out of the market for a $20 set. I see no change in the foreseeable future. The
only answer is in better sets. For example, our 9 -transistor radio is doing well, although pocket sets are slow."
"We've just hit a breathing spell following 2 good years," says an Admiral spokesman. If you include
imports, a lot of radios are being sold, he adds.
Conceding he can see "no good reason" for sudden dip, Motorola consumer products marketing vp
S. R. (Ted) Herkes speculates that this year's bad winter weather kept consumers from "shelf -shopping." He
adds that radio's an impulse item, but people buy TV regardless of weather. Motorola's radio business has
picked up somewhat, according to Herkes.
GE isn't seriously concerned, spokesman said, noting that 1962 was excellent year, and therefore
slump isn't great when compared with previous years. He offers theory that dip may be seasonal and that
some people are delaying purchase of walk -in -&-buy items for other larger purchases.
Even Zenith's Leonard C. Truesdell concedes he's "puzzled." The pres. of Zenith Sales Corp. adds:
"I've said for years we were reaching saturation on radios-every kid in America has one-but I didn't
expect it to be this sharp." But he feels that if there's any sign of buying strike, it may be by dealers
8 -TELEVISION DIGEST APRIL 29, 1963
rather than public. "Discount houses have sold so many radios so cheap and have beaten prices down so
low, I know of many retailers who aren't even interested in radio any more. When they can't make more
than $1 or $1.50 on a sale, what's the use of making the effort? The attempts of some American manufac-
turers to get volume through discount houses have hurt the business. Zenith's radio sales are down slightly,
but only one-fourth as much as the rest of the industry."
Distributor -to-dealer sales of b&w TV may be leveling off to last year's levels, judging by prelim-
inary unofficial figures for March. These show dealers bought about 592,000 sets last month, up only 2%
from the 581,000 of March 1962. For first quarter, sales were about 4% ahead of last year. April 1 TV
inventories at factory & distributor levels stood at about 1.12 million-down nearly 12% from year-ago total.
(For official 2-month EIA TV-radio -phono sales & production figures, see p. 10.)
23 -IN. COLOR TUBE OUTPUT NEXT MONTH: Motorola's 2 -year drive for rectangular 90 -degree
color tube is scheduled to achieve first tangible results in May, when National Video plans to begin first
production -quantity output of 23-in. version.
Motorola itself now plans to introduce 2 -size color set line early this summer-"a minimum number
of 23-in. tubes in the top of the line" (to quote Motorola), and regular 21 -in. round 70-degree tubes in other
sets. Motorola & National Video have spent more than $4 million developing the 90 -degree rectangular
3 -gun shadow -mask tube, Pres. Robert W. Galvin said recently.
Zenith's Rauland Corp., meanwhile, is concluding pilot runs and expects to begin production output
of 21 -in. round 70 -degree color tubes at its new plant in May, starting with small quantities and gradually
increasing through July. Sylvania will start shipping 21 -in. color tubes in quantity some time during 2nd half
of year, probably in 4th quarter (Vol. 3:15 pll).
National Video plans to end pilot runs of 23-in. color tubes by about May 15 and start production
by end of month, Pres. Asher Cole told us last week. Both he and Motorola spokesmen declined to estimate
quantities which will be produced, but Cole said production would be stepped up through rest of year.
Tube will be made available to other set manufacturers in quantity around end of this year, Cole
said, with sampling coming earlier. He estimated it would cost "roughly in the price class of the 21-in.-
maybe about $10 more." National Video plans to produce none of the 21 -in. round 70-degree tubes now be-
ing built by RCA and scheduled to be produced by Sylvania & Rauland this year.
National Video's color tube appears to be interim size, and it's good guess that when Coming's
25 -in. rectangular glass bulbs become available (Vol. 3:13 p8) 23-in. will have run its course. Corning says
its rectangular bulbs may take up to 2 years' development time, but there's some feeling among tube makers
that they'll be available considerably ahead of Corning's stated target dates. Same chassis presumably
can drive either 23- or 25 -in. 90-degree color tube, so it's assumed changeover problems will be minimal.
Behind Motorola's crusade for rectangular 90 -degree color tube is saga of dogged persistence which
is already resulting in change in size & shape of color tubes. There's little doubt that Motorola's campaign
against bulky color sets-and its desire to do something about it-is bearing fruit in accelerated efforts
by Corning & RCA to bring out shorter color tube in rectangular design.
New tube uses specially re-formed black -&-white 23-in. bulb-refined to color's tightened tolerances
and with special 3 -gun neck affixed. RCA-type round tube and Corning's upcoming 25- & 19 -in. color bulbs
use "hard" color glass. Use of b&w glass made it possible for Motorola & National Video to break one bottle-
neck in development of rectangular 90 -degree color tube. Motorola virtually roamed world to obtain equip-
ment to make it possible to produce such a tube now. That the tube will be seen in production quantities
this year, despite widespread skepticism of its competitors, is tribute to Motorola's determination.
TOP TV BRANDS -EN -USE IN 15 MARKETS: How various TV brands stack up in terms of total sete
used in selected markets is again shown in tabulation of surveys made by local newspapers. The tally
for 1963 by Consolidated Consumer Analysis is reproduced by special permission in the table on p. 9.
Owned by its member newspapers, CCA conducts annual research surveys of consumer ownership
& use of various products. The 15 -market survey of TV ownership was based on sample size of 43,104 fam-
NEW SERIES VOL. 3 No. 17 TELEVISION DIGEST -9
flies in areas comprising total of 2.9 million households. Most interviewing was conducted during last 3
weeks of Oct. 1962.
study covers all sets -in-use in homes of interviewed families, which therefore reflects yearly
TV
changes in brand preferences only slightly. Rankings aren't necessarily representative of country as whole,
showing ownership only in markets surveyed. Survey does show variations in regional brand preferences.
Tabulations of TV ownership rank 13 brands according to percentage of households owning them in
markets covered. Survey isn't directly comparable with last year's (Vol. 2:19 p7), because of different markets
covered. Last year's study tallied 17 markets, including 4 not represented this year. Two new markets have
been added this year-Des Moines (survey results represent entire state of Iowa) and West Palm Beach.
RCA was listed as top brand-in -use in all but 2 markets. Like last year, Zenith & Philco were first
in one market each. Here are top-place rankings by ownership, with last year's figures as general guide:
RCA ranked first in 13 markets, 2nd in 2 (last year first in 15 and 2nd in 2). Zenith, first in one,
2nd in 5, 3rd in 6, didn't rank below 6th place in any market (last year, first in one, 2nd in 3, 3rd in 6).
Philco was first in one, 2nd in 4, 3rd in 2, didn't rank below 7th in any market (last year, first in one, 2nd in
3, 3rd in one).
Admiral was 2nd in 2 markets, 3rd in 4, didn't rank below 7th in any market (last year, 2nd in 4,
3rd in 4). GE was 2nd in 2, 3rd in 2, didn't rank below 7th (last year, 2nd in 3, 3rd in one). Motorola was
3rd in one market, same as last year.
For direct comparisons of sets -in-use ratings with past surveys, check your back files of Television
Digest-1962 (Vol. 2:19 p7), 1961 (Vol. 17:28 p15), 1960 (Vol. 16:35 pll), 1959 (Vol. 15:26 p16), 1958 (Vol. 14:28
p12), 1957 (Vol. 13:40 p10).
More detailed tabulations of brand preferences in individual markets (including, in some cases, radio
& stereo brands as well as TV) will be found in Consumer Analysis reports published by each of the CCA
member papers. These participating newspapers will supply copies of own areas' analysis on request: Denver
Post, Des Moines Register & Tribune, Duluth Herald & News -Tribune, Honolulu Star-Bulletin & Advertiser,
Indianapolis Star & News, Long Beach Independent Press -Telegram, Milwaukee Journal & Sentinel, Omaha
World -Herald, Pensacola Journal & News, Phoenix Arizona Republic & Gazette, Providence Journal -Bulletin,
Salt Lake Tribune & Deseret News -Telegram, St. Paul Dispatch -Pioneer Press, Palm Beach Post & Times,
Wichita Eagle & Beacon.
Generic
CITY RCA
dor
Victor
Zenith Philco Admirol
Electric Motorolo Silvertone
Pock d.
Dell
u
Westinghouse idognovox Sylvonio Hoffmon
Place % Place % Place % Place % Place % Place % Place % Place % Place % Place % Place % Place % Place %
Denver 1. 18.1 2. 12.9 6. 8.7 4. 12.0 5. 11.1 3. 12.7 8. 5.1 7. 5.7 10. 4.0 12. 3.6 13. 3.5 15. 2.6 16. 2.1
Des Moines tit 1. 16.5 3. 19.9 2. 11.8 5. 8.2 6. 7.8 4. 10.2 9. 3.3 12. 2.5 7. 4.4 13. 2.3 8. 3.9 17. 1.1
Duluth -Superior 1. 25.5 5. 8.3 3. 9.6 4. 8.4 2. 17.3 9. 5.1 10. 4.3 6. 6.9 8. 5.4 11. 2.5 18. 1.2
Honolulu 2. 20.2 1. 20.3 5. 8.7 7. 7.6 3. 13.8 6. 8.5 4. 11.0 9. 3.7 10. 3.2 11. 3.1 12. 1.7 8. 5.8
Indianapolis 1. 19.8 3. 1O.5Ì 4. 9.6 2. 15.4 5. 7.0 6. 6.5 8. 4.4 9. 3.6 10. 2.3 7. 4.6
Long Beach 1. 21.2 2. 13.8 7. 8.7 4. 11.2 3. 11.3 10. 5.4 5. 10.4 6. 10.2 11. 2.7 13. 2.5 9. 7.2 14. 2.0 8. 8.4
_Milwaukee 1. 27.6 3. 14.9 , 5. 9.7 2. 18.6 6. 7.3 4. 10.4 7. 5.5 10. 2.5 9. 3.2 8. 3.9 10. 2.5
Omaha 1. 22.7 3. 14.6 2. 16.7 6. 9.0 1 4. 10.1 4. 10.1 7. 5.1 9. 4.3 10. 3.0 8. 5.0 16. 1.2 18. 1.1
,-
Pensacola 1. 22.8 3. 16.9 2. 18.2 5. 9.6 7. 8.0 4. 11.5 6. 8.4 9. 2.3 10. 1.8 10. 1.8 8. 2.6
Phoenix 1. 11.1 4. 9.2 7. 5.5 3. 9.8 2. 10.7 5. 7.0 8. 5.3 9. 4.6 6. 6.6 11. 3.7 10. 4.0 12. 3.3 13. 3.2
Providence 2. 12.0 3. 10.7 I 1. 12.4 4. 10.4 7. 6.4 6. 9.4 12. 2.4 5. 9.7 8. 4.2 9. 3.6 11. 3.1
Salt Lake City 1. 18.2 6. 7.5 ' 2. 13.2 3. 11.9 4. 11.8 5. 8.2 8. 5.2 9. 4.9 13. 2.8 7. 6.1 11. 4.5 12. 4.0 10. 4.6
St. Paul 1. 23.8 2. 13.9 5. 9.7 3. 12.5 4. 11.9 5. 9.7 19. 1.1 13. 2.0 10. 3.4 9. 3.7 17. 1.3
West Palm Beach 1. 24.4 2. 15.4 3. 12.5 7. 5.6 i 5. 8.0 ) 5. 8.0 4. 8.7 10. 4.3 11. 2.7 7. 5.6 13. 1.9
Wichita 1. 13.7 2. 11.2 4. 8.4 3. 10.6 i 6. 7.2 5. 7.7 8. 4.4 19. 1.0 10. 3.3 7. 4.6 13. 1.9 9. 4.0
(1) All figures are for the state of Iowa.
10 -TELEVISION DIGEST APRIL 29, 1963
TV-RADIO PRODUCTION: EIA statistics for week ended April 19 (16th week of 1963):
Apr. 13-19 Preceding wk. 1962 wk. '63 cumulative '62 cumulative
Black & white TV 131,801 137,969 122,798 2,146,536 2,069,025
Total Radio 312,176 332,909 363,154 5,198,298 5,736,115
Auto Radio 135,276 147,956 130,482 2,392,241 2,015,844
TV UP, RADIO DOWN: EIA's release of official 2- New sets: (1) WesIern Auto's Truetone color line,
month sales & production figures confirms preliminary re- with 3 models, will begin with metal consolette at about
ports -radio sales down substantially (see p. 7), mono- $495, include step-ups at $595 & $645. (2) Sonora adds
chrome TV sales up somewhat, phono sales running way 17 -in. portable at $139.95 list, 19 -in. at $159.95, 23 -in.
ahead of last year, at distributor -to-dealer level. consoles at $224.95 & $234.95, TV combos at $299.95 &
$399.95, plus 4 new phonos. (3) Electrohome of Canada,
Distributor sales of b&w TV for first 2 months topped claiming 300 retail outlets in all 50 states, adds TV to its
the million mark, running about 6% ahead of 1962, but combo & stereo line, 9 units starting with 19 -in. portable
only up 3% in Feb. -to -Feb. comparison. In production at $179.95; color is due this summer. (4) Packard Bell
column, all -channel sets accounted for 12% of total output adds 19 -in. remote portable at $229.95. (5) Mercury
in 2 -month period, and were running 41% ahead of last Phonographs (div. of Mercury Records) adds first units
year. built in Holland by Philips-transistor portable phono (5
Phono distributor sales for Feb. were 38% better than lb.) , operating on 6 flashlight batteries ($59.95) ; deluxe
Feb. 1962, and, following a 44% increase for Jan. this stereo portable ($139.95). (6) Magnavox to add 2 new
year, 2 -month results showed year-to-date rise of better 27 -in. consoles to line, including Danish walnut set with
than 40%. tambour doors at $378.50. (7) Sharp introduces 11 -tran-
sistor 2 -speed portable phono with AM -FM radio. (8)
In Feb. radio figures, even FM didn't provide usual
Zenith debuts Jetliner slim luggage -style portable with 19 -
bright spot, showing slight decline compared with Feb. in. bonded tube ($189.95).
1962. In 2 -month figures, however, FM production was
still a little less than 5% ahead of 1962. Only cheering Motorola challenged FTC examiner's findings in ask-
radio news was in specialized field of auto radios -along ing full Commission to review initial decision recommend-
with good new car business, production was 24% higher ing cease-&-desist order against advertising claims for
than same 1962 period. Official EIA 2 -month figures, com- TVs & radios (Vol. 3:14 p14). Of particular interest to
pared with last year: industry is Motorola's objection to doctrine that sets con-
TV-RADIO DISTRIBUTOR SALES
taining imported components should be labeled as to ori-
Blaek-&-White TV Radio (excl. auto)
gin. In this connection, Motorola counsel said examiner
Month 1963 1962 1963 1962 had raised new issues, and in view of fact that company's
January ,503,821 465,836 453,343 562,869 major competitors engage in similar practices, results of
February 535,999 521,275 616,036 697,893 decision would have far-reaching effects-probably far
TOTAL 1,039,820 987,111 1,069,334 1,260.762 beyond transistor radio industry. In addition, Motorola
called examiner's finding "vague, indefinite and excessive
BLACK -&-WHITE TELEVISION PRODUCTION
in scope" and added that claims which were challenged are
Total All -Channel
Month 1963 1962 1963 1962
technical in scope and were voluntarily abandoned before
January 484,415 488,869 58,032 39,609 complaint was issued. FTC counsel also asked Commis-
February 557,931 541,494 63,713 46,715 sion to review case, challenging examiner's dismissal of 2
TOTAL 1,042,346 1,030,363 121,745 86,324 charges against Motorola.
RADIO PRODUCTION "Single most important insirument" for solving man-
Total Auto Radio F1I kind's present & future problems may well be electronics.
Month 1963 1962 1963 1962 1963 1962 So said RCA Pres. Elmer W. Engstrom last week in ad-
January 1,229,507 1,350,630 657,691 530,589 87,641 76,510 dress to SMPTE convention in Atlantic City. Electronics
February 1,389,652 1,464,797 657,691 480,232 75,544 84,216 has now advanced "to a new & essentially unlimited tech-
TOTAL 2,619.159 2,815,427 1,252,196 1,010,821 163,155 156,223 nology capable of application to virtually every organized
human activity," he said. In future, he said, electronics
PHONO DISTRIBUTOR SALES
may play the major role in organizing man's knowledge,
1962
Mono
1963
Stereo Total Mono Stereo Total
improving genetic strains of plant & animal life to feed
Month
January 81,046 235,479 316,525 43,423 171,305 219,728 expanding populations, supplying inexpensive & inexhaus-
February 73,424 256,545 329,972 50.563 153,557 239,420 tible energy sources, educating & communicating with
TOTAL 154,470 492,027 646,497 93,986 360,162 459,148 peoples throughout the world, exploring space, forecasting
significant climatic changes far in advance.
PHONO FACTORY SALES
1963 1962
ZeniIh's famous Trans -Oceanic 8 -band portable radio,
Month Mono Stereo Total Mono Stereo Total first introduced in 1941 in tube version (and since transis-
January 83,638 258,053 341,694 63,545 191,014 259,559 torized), has been reduced from $250 to $199.95, including
February 77,971 262,304 339,275 52,566 202,846 2 55, 412 batteries, as result of "new technology in transistors and
TOTAL 161,609 520,362 681,971 121,111 393,860 514.971 their circuits."
NEW SERIES VOL. 3 No. 17 TELEVISION DIGEST -11
Per
Pre -Tax Common
Company Period Sales Net Earnings Common
Earnings Shares
Share
Stk.
.20
.10
3%
June 30
June 14
June 14
May 22
May 9
May 9
Transcontinent TV ....
Tung -Sol
Westinghouse
Q
Q
Q
.121/2
.17%
.30
May 15
June 3
June 1
Apr. 30
May 15
May 6
National Video -A Q .061/4 May 20 May 1 Zenith Q .25 June 28 June 7