Radio

up to this point, wireless was seen as point to point

what happens as another philosophy emerges?
 
1919 - 1920 - Frank Conrad (American)

Westinghouse engineer

puts a microphone in front of a phonograph in his garage

a hobby - 2 hour transmissions on Wednesday and Sunday evenings

some talk, music, news

people write in requesting music!

who was listening?!

 

A Pittsburgh department store advertises wireless sets (in the newspaper!)

Westinghouse starts to see the revenue potential

1920 - builds a radio station - KDKA
 
"broadcasting"
 
point to mass
AM - amplitude modulation
 
1912 Radio Act

transmissions required a government license

specified wavelength, power and hours of operation

not a problem when wireless was point to point

but, in 1920 only one wavelength was available

by 1921, a second was added and in 1922 a third

 
radio was catching on
January 1, 1922- 30 licenses - 100,000 receivers sold
May 1, 1922 - 218 licenses
March 1, 1923 - 576 licenses - 550,000 receivers sold

(doesn't count homemade sets)

 

Interference was increasing

Herbert Hoover, the Secretary of Commerce and Labor (the person who issued licenses) was concerned

 
1922 - First National Radio Conference

clarified government role in regulation (technical not content)

proposed that radio should operate in the public interest

what does that mean?

since not everyone who wants to broadcast can do so, those who do get to broadcast must broadcast not only in their own interests but also in the interests of those who don't get to broadcast
 
1923 - Hoover v. Intercity Radio

Hoover had denied Intercity Radio a license, the courts said that he didn't have that authority

impact?

 

1923-5 three more National Radio Conferences, but not much gets done

 
1926 United States v. Zenith

Zenith knowingly violated the terms of its license, said the license was too restrictive

the Court agrees and essentially nullifies the power of the Secretary of Commerce and Labor

impact?

 
1927 - Radio Act of 1927

Congress creates the Federal Radio Commission (FRC)

mandate is to figure out how to regulate radio

spectrum scarcity and the public interest

seven years of work and many court cases later...

 
1934 - Communications Act of 1934

Congress establishes the Federal Communications Commission (FCC)

 

As the 1920s were unfolding, what did radio look like?

competing philosophies

 
1. Radio Group

headed up by Westinghouse and its flagship station WJZ in New York City

the chief aim of radio is to sell receivers

how do you do that?

key question - what will attract people to radio so much that they will want to buy a radio receiver?
role: entertainment!
 

2. Telephone Group

headed up by AT&T and its flagship station WEAF in New York City

radio should be "toll broadcasting"

radio as a common carrier (like the phone system)

anyone can lease time on a telephone group station and provide their own content

who would be interested in doing that?

 
role: information and education
 
which philosophy would win?

Radio Group (with shorter advertisements)

today, radio sells audiences to advertisers

 

who owned radio stations?

in 1923 40% were owned by radio dealers/manufacturers

13% by educational institutions

12% by newspapers

5% by department stores

2% by churches

the beginnings of Christian broadcasting

 
how did radio diffuse?

early radios were expensive

however, they were cheap to make at home

1921 1 in every 500 American households had a radio
1926 1 in every 6 American households had a radio

radio diffused across all classes and geographic locations

 

by 1926, AT&T wanted out of radio

sells WEAF and other stations to RCA and agrees to leave the broadcasting field

 
RCA now owns two groups (chain broadcasting, networks)

which two?

the Westinghouse Radio Group (recall Westinghouse is part owner of RCA)

and the Telephone Group

 
RCA wants to create a new company to run both networks
1926 forms the National Broadcasting Company (NBC)

NBC Red - the old AT&T group (WEAF)

NBC Blue - the old radio group (WJZ)

 

NBC growth

1927 - the Red has 22 affiliates, the Blue has 6

what is an affiliate?

1933 - the Red has 28 affiliates, the Blue has 24

the best of the best

note: David Sarnoff becomes President of RCA in 1930

 
1926 - Arthur Judson is a talent agent who can't get his talent booked on NBC

decides to start his own network - the United Independent Broadcasters (UIB)

shaky financing

looks like failure until...

the Columbia Phonograph Company gets interested

why?

1927 Columbia Phonograph Broadcasting System ("Phonograph" dropped later that year) - CBS

William S. Paley would own CBS until 1977

 
1928 - 17 affiliates
1933 - 91 affiliates!

but, NBC had the best stations and the best talent

 

1930s - the Depression years, NBC and CBS dominate

"the Golden Age of Radio"

 
1934 - Mutual forms as the fourth network

has trouble competing

a marketing coup - getting exclusive rights to the 1938 World Series

a problem - Mutual doesn't have affiliates in all markets

offers rights to NBC or CBS stations in unaffiliated markets

 
the response?!
 

as a result, some cities don't get the broadcast of the 1938 World Series

 
impact?

1938 - inquiry into chain broadcasting

 

1941 Report on Chain Broadcasting (FCC)

key provisions

1. non-exclusivity (affiliates can carry non-network programming)

2. pre-emption rights (affliates could pre-empt network programming)

 

why? the license holder, not the network is responsible for broadcasting in the public interest

 

3. duopoly rule - "no license shall be issued to a standard broadcast (AM) station affiliated with a network organization which maintains more than one network"

what does this mean?

 
NBC and CBS sue
 
1943 - Court agrees with the FCC
 
NBC is forced to sell one of its networks
 
1943 - NBC Blue is sold to the American Broadcasting Company (ABC)
 
this brings us to World War II
 
 
 

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