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CED Digest, Vol. 8

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CED Digest, Vol. 8 ************************************************************************ ************************************************************************ CED Digest Vol. 8 No. 1 1/4/2003 ------------------------------------------------------------------------ 20 Years Ago In CED History: January 5, 1983: * Elizabeth Dole is nominated by President Ronald Reagan as Secretary of Transportation, the first woman destined for his Cabinet. * At the close of a two-day Warsaw Pact meeting in Prague, Czechoslovakia, the Soviet Union and its allies offer a nonaggression pact with members of NATO. Among the proposals is a mutual commitment "not to be the first to use either nuclear or conventional weapons." * The U.N. Economic Commission for Latin America reports that in 1982 the region posted the worst record in 40 years. In many nations inflation is rampant, and the region has cumulative foreign debts amounting to almost $275 billion. * Pope John Paul II names 18 Roman Catholic clergymen as cardinals, including Archbishops Joseph L. Bernardin of Chicago and Jozef Glemp of Poland. January 6, 1983: * Great Britain's Prime Minister Margaret Thatcher shuffles her Cabinet. Among the new members is Michael Heseltine, who replaces John Nott as Minister of Defense. * President Reagan signs into law the first increase in federal gas taxes in 23 years. The five-cent-a-gallon increase is to help finance highway and bridge repairs and mass transit systems, thereby creating new jobs. * The Winter 1983 Consumer Electronics Show begins in Las Vegas, Nevada. Telephones (after the recent deregulation), video games, and personal computers are the dominant products at the show. Notable video game displays include the CBS/Fox M*A*S*H introduction and the Spectra-Vision 3-D Vortex game requiring red/blue glasses to see the three dimensional field. Apple showcases the LISA computer with a graphical user interface. * RCA PRESS RELEASE: 'Chariots Of Fire' and 'An Officer And A Gentleman' to Spearhead RCA's New Video Disc Titles in 1983 The 1982 Academy Award-winner, "Chariots Of Fire," and two other highly acclaimed films, "An Officer And A Gentleman," and "Superman II," will be among the new titles on RCA video discs in the first quarter of 1983, it was announced today. Seth M. Willenson, Division Vice President, Programs and Business Affairs, RCA VideoDiscs, said RCA will add 33 new titles to its catalog in January and February. "The 'CED' format offers the largest and most diverse selection of programs to help consumers build home video libraries tailored to their tastes and interests," Mr. Willenson said. RCA's January release schedule includes "The Man Who Shot Liberty Valance," "Arsenic And Old Lace," "Mildred Pierce," "The Black Hole," "Tron," and "West Side Story." February releases include "Treasure Island," "Midnight Cowboy," "The Great Dictator," "Bridge On The River Kwai," "A Man For All Seasons," "Annie," and "Moonraker." "Chariots Of Fire," "Superman II," and "An Officer And A Gentleman" represent three unique box-office hits. They are the kind of quality entertainment that appeals to audience's emotions and interest, and which will stand the test of time. Movies such as these highlight the strong sales orientation of the "CED" video disc, which offers the best quality and value in building home video libraries. January 7, 1983: * Canada reports an unemployment rate of 12 percent for December 1982, a post- Depression high. For the same month U.S. unemployment is 10.8 percent, the highest level since 1940. * The Reagan administration lifts a five-year U.S. embargo on arms sales to Guatemala. A U.S. State Department spokesman declares that Guatemala has made progress in the area of human rights, making the action possible. * Future CED title in widespread theatrical release: Trail of the Pink Panther. * RCA PRESS RELEASE: RCA Plans to Add Interactive Capability to New "CED" Videodisc Player in Second Half of 1983 LAS VEGAS, January 7 -- RCA plans to introduce an advanced "CED" VideoDisc player late in the second half of 1983 with interactive/ random access capability, it was announced last night by D. Joseph Donahue, Vice President and General Manager of the RCA Consumer Electronics Division. "The broadening of the 'CED' system into new applications for VideoDisc is a natural expansion of a basic product line that is moving into 1983 with increased sales momentum," he said at a press conference at the opening of the industry's Consumer Electronics Show here. Sales of RCA branded VideoDisc players exceeded 130,000 units in 1982, or double that of the product's introductory year, 1981, Dr. Donahue estimated. He noted that "additional significant sales were generated by other 'CED' brands during the year, particularly in the second half as the video disc industry closed the year with an expanding video disc business. " Dr. Donahue reported the particularly strong demand for discs last year resulted in a 138 per cent rise of RCA disc sales by distributors to dealers over 1981's total. "Considering the state of the economy in 1982 and the natural obstacles faced in any new product introduction, we view the past year as a highly encouraging one for the RCA VideoDisc system," he said. "As the year ended, it became clearer that the industry now has an expanding opportunity to sell the consumer a system that amounts to a $1,000 retail sale in the first year of ownership." He pointed to studies by RCA VideoDiscs which indicate that consumers purchase an average of from 20 to 30 discs in the first year of player ownership. "The consumer investment in a player and discs therefore amounts to some $1,000, a fact that is being noticed by an increasingly larger number of dealers," Dr. Donahue said. The new player, which will be priced later in the year, will have the ability to search out specific segments of video information contained in the two-hour "CED" discs, "thus clearly showing the potential of the 'CED' system in applications other than consumer entertainment," Dr. Donahue said. He indicated the new player will also provide opportunities for the development of new forms of programming. Dr. Donahue noted that more than 8,000,000 "CED" discs have been produced to date in response to particularly strong demand for discs after a consumer purchases the player. RCA anticipates that industry sales of all video disc players in 1983 will exceed 300,000 units, "and could easily reach 400,000 players if the economy becomes more favorable by mid-1983," he added. * RCA PRESS RELEASE: RCA Looks for Video Industry Sales Records in 1983 with Continuation of Innovative New Products LAS VEGAS, January 7 -- Innovative new products will continue to boost industry unit sales of video products to new records in 1983, Arnold T. Valencia, President, RCA Sales Corporation, forecast here last night at the opening of the Consumer Electronics Show. "However, " Mr. Valencia said, "intense competition will remain a major factor throughout a year that will see a combined total of more than 20 million TV receivers, video cassette recorders and cameras sold by the video industry." Noting that color television, the principal product category of the video industry, established a unit sales record last year, Mr. Valencia said RCA expects an improved economy to help color TV reach another record of 11.7 million sales to dealers in 1983. He expects video cassette recorders to continue an upward sales movement with a strong 35 per cent rise in 1983 to 2.7 million units, compared with a record 2.0 million units in 1982. The RCA executive cited "certain favorable trends in a very difficult economy last year, "including the increasing popularity of remote control color TV receivers and the strong demand for VCR's and video cameras. "However, we recognize the need for greater profitability in the video business and believe that 1983's new products will provide dealers with specific and meaningful profit opportunities. After all, dealers have to make their own profits by emphasizing those products that can be properly displayed and demonstrated to a public that is more aware of video than ever before," he added. Mr. Valencia cited the particular attraction of multi-function remote control color TV receivers, projection television and relatively new products such as portable VCR's and stereo video disc players. "The alert dealer who wants to build a profitable video business will also give consideration to new accessory products such as advanced games, computers and software." In his review of the basic video product categories, he outlined RCA's outlook for the industry's coming year: -- Remote control will grow to 38 per cent of all color sets sold in 1983, up sharply from 25 per cent in 1980. -- Projection television will rebound this year to some 150,000 units for the industry, nearly triple the total in 1980. -- Black-and-white TV receivers are expected to increase slightly in 1983 to 5.8 million units. -- Portable VCR's are predicted to account for nearly 30 per cent of all VCR models sold in 1983, "providing a healthy sales dollar stimulus to an increasingly competitive business." -- The dollar sales opportunities represented by portable VCR products will be magnified this year with an expected industry sales total of some 400,000 cameras, a one-third increase over 1982's sales total. Mr. Valencia noted that new segments of the video business had begun to build sales strength in 1982, "indicating that dealers and consumers are recognizing the reality of color television as the focal point in the home for an expanding array of video entertainment devices." As an example, he said RCA has been increasingly pleased with the sales strength of its new line of video monitors that are designed to enhance the new video accessory products. "Our direction is clearly towards the consumer, who even in today's economy, is not looking for the cheapest product he can find, but rather the best product he can afford," Mr.
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