TELEVISION'S FIGHT FOR RICH

Wanganui Chronicle, 23 December 1950, Page 2

TELEVISION'S FIGHT FOR RICH

COLOUR MARKET U.S. Bitter Trade War Develops (By SEAGHAN MAYNES, Reuters Correspondent in Washington). The United States Television Industry is engaged in a bitter trade war over the colour systems to be adopted for use in the vast spectator-listener market. The Radio Corporation of America, the National Broadcasting Company and other interested ne> works are lighting to stop the Columbia Broadcasting System from putting into commercial operation its “whirling disc” colour system, earlier approved by the Federal Communications Commission. Desperately working to perfect its own electronic-tube colour system, R.C.A. wants the C.B.S. invention barred, from the airwaves on the grounds that it is “scientifically unsound and against the public interest.” The public’s reaction to the colour television demonstrations already staged by the Columbia system appeared to be favourable, but, the manufacturers of the ■'Black and White" television sets, judging by their nation-wide campaign against the C.B.S. colour sytem, definitely regard it as against their Interests. Dealers are complaining that the Introduction of colour casts is slashing sales of sets built to receive black and white transmissions and causing the public to cancel orders at a time when the industry hoped to sell millions of sets in the Christmas period. Over 8,500,000 American homes now have television sets.

Backed by other manufacturers, R.C.A. is maintaining that the C.B.S. “whirling disc” colour converter would soon be outdated by a built-in electronic-tube which technicians were working to perfect. Objection to the C.B.S. invention was that it was not “compatible” which meant that owners of existing sets would have to instal a converter costing up to 100 dollars to receive colour and an adapter costing up to 50 dollars to receive colour programmes in black and white. COLOUR BROADCASTS R.C.A. said its system would permit present sets to receive colour broadcasts in black and white without additional equipment, but C.B.S. maintained that its system had been satisfactorily, demonstrated while there was “no reasonable probability” that its rival’s would ever work satisfactorily. After nine months hearing during which competing colour systems were tested, the Federal Communications approved the C.B.S. invention on the grounds that it was cheaper, simpler and its colour was superior to that of other systems demonstrated. C. 8.5., which had been demonstrating its colourcasts in New York, planned to start commercial operations on a limited scale on November 20 and to have by Christmas about 20 hours of colour programmes on the air each week. R.C.A., the National Broadcasting Company and the manufacturers protested the Commission’s decision, carried the case to a Federal Court in Chicago and got a restraining order blocking the scheduled colourcasts. The order is to remain in force until the Court reaches a decision on R.C.A.’s application for a temporary injunction against its rival and on a motion by the Commission for dismissal of the R.C.A. application. Officials do not expect this decision to bo reached before Christmas. They emphasise that in any event the losing party is almost certain to appeal the issue to the Supreme Court. In the meantime, the American public, confused by the rival claims and legal battling, is holding off buying black and white reception sets in the hope that colour transmission will soon be available. This hesitancy, coupled with the Government’s recent restrictions on hire-purchase buying, is causing widespread alarm among the television manufacturers and dealers. With

warehouses full of unsold black and white sets and dealers complaining of cancelled orders, the American Television Dealers and Manufacturers Association launched a high-pressure sales capaign to convince the public that quantity colour television was still some years away and black and white sets should be bought without hesitation, but what shocked many Americans, hardened to the exhortations of commercial publicists and advertising agents, was the companioncampaign ny the manufacturers to drive their message into the American home through the children. In radio I regrammes and in fullpage advertisements in the nation’s newspapers, parents were told that theye were humiliating and shaming their children by denying them a television set nc’V. A weeping child was pictured pleading.with a father for a set and large black type proclaimed that the child was suffering “humiliation” by having to beg “precious hours of television” from a neighbour. A child guidance consultant was quoted in the advertisements as saying: “Youngsters today need television for their morale as much as they need fresh air and sunshine for their health." PUBLIC REACTION The reaction of the public was immediate and certainly not what the manufacturers expected. The advertisements touched off a wave of Indignant public protest. Angry parents wrote to the newspapers condemning the campaign as “vicious,” "an alllow in advertising’ ’and a “blackmail attempt” to coerce parents through their children tc buy sets. The Family Service Association of America described it as “cruel pressure" on parents. Mrs. Eleanor Roosevelt, widow of the late President, who refused to allow the use of her name in the advertisements described it as “dreadful” and “horrible." The Advertising "rc.de Magazine, tide, saw the advertisement as “the worst case of poor taste thai advertising has had in years." Supporters of the C.B.S. colour system are maintaining that the manufacturers, fearful of the impact of colour television on their profitable market, were striving to boost sales now so that the accumulation of black and white sets in the hands of the public would ii effect be a vested interest c gains, colour programmes. Cnunse. for C.B.S. said the light was between the people and the set manufacturers who hac gone on a sit-down strike against colour to try to keep it off the marl,cl until they had sold around 40 million black and white reception sets. Counsel also charged that the manufacturers had earlier refused to bv.iiu the C.B.S. colour equipment into sets coming off the production lines but were leaving it to the purenasert to buy the needed equipment sepai ately and install It at higher costs. It now appears, however, that s. ,r..e set manufacturers are breaking away from the group opposing theC.BS. colour system and are reportedly reaoy tc turn out sets with the “whii-lii.g disc” built into them.