August 24, 1974
KUSISTO VIEWS
Car Quad Growth Hinges
On Key Market Factors
By EARL PAIGE
SAN FRANCISCO
Oscar Kusisto, head of Motorola's automotive products division, was in the forefront of the introduction of quadrasonic when, along with RCA, his firm bowed a unit at Billboard's second International Music Industry Conference (IMIC-2) in 1970.
As chairman of the International Tape Assn., Kusisto's interests go far beyond car stereo, and indeed into every phase of recording.
Kusisto stands behind all his long advocacy of discrete quad and believes that ultimately there will be growth in 4-channel car stereo.
While at KIOI-FM here, updating himself on the current discrete FM tests, prior to one of his many trips to Japan, Kusisto offered the following comments on quad:
What's holding car quad back?
He notes a number of factors, "The lowest-priced quad model we have is $99.95 at retail and that's plus speakers and installation, and this is considerably more than double the low-est-priced stereo 8 models.
"The unemployment trend, particularly as it affects young people, is another factor. It is young people who are spearheading the car quad consumer demand and unemployment is making this a tough period.
"The software demographics, to get to another problem area, still don't match. There is still a lack of prerecorded quad 8 appealing to young consumers. I think, too, that there is very poor national distribution of prerecorded quad 8. Out of the top 20 in your ‘Top LPs & Tape’ chart, over 10 percent is available in quad but many stores are not stocking them.
“I think basically that there is still a concern over the perishable nature of software.
"Also a problem is dealer demonstrations. I believe some of them are absolutely sad. There is a lack of knowledge about system differences, matrix vs. discrete. And whether you're talking about or selling either one, how to sell it to the consumer is not being properly taught.
“In this regard, I feel that we, the manufacturers of hardware, have to share in the blame.
"I think also that many retailing people have a poor sensitivity to music and quad source listening. The mere fact that a person is in retailing doesn't indicate that he really qualifies on the basis of pure impact in terms of knowledge and sensitivity about quad.
Matrix vs. discrete has been confusing. That's another part of the problem. Certainly I feel matrix is an improvement on stereo, but discrete is far superior to matrix."
Kusisto believes the availability of ICs, FM quadrasonic broadcasting, and dealer education are three more problem areas.
"Up until really recently the semiconductor industry was flat out in terms of keeping pace with demand.
Also, they were looking to major market opportunities and ICs for quad decoders, and demodulators were not a high priority. Now there is more of a norm existing in semiconductor industry and you're going to see more dramatic improvement in deliveries.
"As for FM quadracast, I am absolutely sure we will find the FCC approving a system by 1975.
"Dealer education, however, re-
mains a definite need. I think that in addition to this, there are many artists who do not see the impact quad
is going to have and who lack an appreciation of quad.
"I might have been a little too optimistic in my early estimates of how fast quad would catch on in that I did not realize how this lack of appreciation by artists would affect quad. There are exceptions. Hugo Montenegro is one."
Kusisto believes that in regard to car quad there is a handicap in the consumer wanting more and more features and therefore driving up the price of 4-channel units. "You will have to work your way into this. The timing right now is poor."
At the same time, Kusisto reiterates the disclosure in Billboard (May 11) that '76 Fords on sale next year will be equipped with 4-chan-nel players.
Kusisto also feels that the sweep toward in-dash car stereo will not contradict the growth of car quad as many believe.
It has been pointed out over and over that car quad with four amplifiers, to just pick on starters, not only adds to the size of units but also the price. Size is a critical factor in in-dash and so is price.
"You will just have to approach in-dash car quad differently," Kusisto says. "One way this is being done right now, of course, is though OEM at the car manufacturer level." But he believes the answer to better growth in car quad is tied to many factors and certainly not keyed to in-dash alone.
He also says that the situation in world markets vis-a-vis car quad varies, but closely parallels the U.S. situation. "In Europe, we're just getting started in 8-track. I feel quad 8 is going to be hotter than a red wagon over there. I think this because I believe Europeans have a greater appreciation for music."
Kusisto lists the following as the answer to better car quad success:
• An upturn in the economy and this impact on the spearheading young consumer group;
• The CD-4 commitment.
"There are new vinyls. DuPont among others is developing vinyl that even at a 4-mil stylus size will offer over 100 plays with good sig-nal-to-noise ratio and without losing quad.
"This improvement is not limited to vinyl but is coming in stylus and cutting heads and other technological areas. The availability of ICs for all the hardware associated with CD-4 is all part of this improvement that I feel will see capabilities of 300-400 plays coming very soon.”
