That is a separate TV with cassette player builtin. Commodore's and other computers of this era used TVs (via analog composite out) instead of dedicated monitors, which lead to many fights over whether to play with a computer or videogame or watching broadcast show on the single TV in the house.
... no... no... I'd want a larger colour monitor. A 1702 by preference. That way I could watch programmes like Danger Mouse or Count Duckula while using my Vic-20.
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That setup is awesome even *without* the VIC-20.