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After World War II, in the Soviet occupied territories, numerous small and even private
companies appear on the horizon. However, in the fifties at the latest, private
entrepreneurs are pushed from the market. In addition, the owners of the traditional names
such as Körting, Mende, AEG and Loewe from Saxonia and Berlin
are emigrating to the West. Their factories are dismantled and moved to the Soviet Union,
or their companies are now trading under the name »Sowjetische Aktiengesellschaften
SAG« (Soviet Joint Stock Co. SAG). After their return to the GDR, they are converted
into national owned companies.
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Stern-Radio Sonneberg, one of the largest factories, is one example. In 1944
created as an out-sourced factory of AEG, dismantling was started after the war.
In December 1945, the company is converted into a SAG whose profits are sent to the USSR
as part of reparation. In 1952, the company is returned to the Soviet occupied zone and
converted into a national owned company. Even the Sachsenwerk Radeberg, where the
TV set »Leningrad« has been built since 1950, has become a SAG.
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Whereas in the beginning of the GDR and the FRG the state of the development is
practically comparable, the gaps in development between the two countries are widening
in the course of time. TV was introduced in the GDR before this happened in the FRG. But
a second TV station and colour television do not materialise until 1969 (in both
countries). »Color 20« was the name of the first colour TV in the GDR
commemorating the birth of the GDR in 1949 - built in the TV Factory Stassfurt.
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Insufficient supplies as well as lack of quality are part of the problems in an economy
focusing on mass production. Furthermore, high-quality products are rather exported to
capitalist countries abroad to bring in foreign currency.
Attempts by the GDR governments to push back the influence of Western media are not
very successful.
With the break-up of the GDR, the production of items of entertainment electronics
comes to a halt with only very few exceptions. The remaining companies cannot compete
with the superior technology of their competitors on the world-market, and, to top it
all, the »freed« population prefers products from the West.
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