When were the forms of media created? When did advertising first show up? Who owns the media?
Creation of the various forms of media
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Newspapers & Magazines ~ 1880
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Movies ~ 1910
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Television ~ 1945
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Cable Television ~ 1980's
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Satellite Television, Internet, Digital Communication ~ End of the 20th century
In 1920, radio was first developed, primarily for use by the military, strictly for sendingHistory of the Media - Old Radios messages from one location to another. David Sternoff, the then-president of RCA, first had the idea to sell radio sets to consumers, or what were then called radio receivers. However, consumers needed a reason to buy radios, so RCA was the first to set up radio stations all over the country. Between 1920 and 1922, 400 radio stations were set up, starting with KBKA in Pittsburgh. Stations were also set up by universities, newspapers, police departments, hotels, and labor unions.
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By 1923, there were 600 radio stations across the United States, and $83 million worth of sets had been sold.
The biggest difference in radio before and after 1923 was that the first advertising was not heard on the radio until 1923. RCA at the time was made up of four companies:
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AT&T
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General Electric
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United Fruit
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Westinghouse
United Fruit was one of the first global corporations, and one of the first to advertise on the radio. The AT&T division of RCA first thought about selling time on the air to companies, which marked the start of "toll broadcasting." WEAF was the first station to operate this way, causing widespread outrage, and accusation of "polluting the airwaves."
Because of this controversy, the practice of selling advertising time was called "trade name publicity." Sponsors linked their name with a program on the air, rather than advertising a specific product in a 30 second "commercial" as we know it today.
Why did AT&T decide to experiment with charging companies for air time?
AT&T was not making any money from broadcasting at the time since they only made transmitters, not receivers. They only made money when new radio stations bought the equipment required to broadcast. They did not make money from consumers buying radios.
AT&T also started the practice of paying performers for their time on the air, rather than only volunteers, which was standard practice for radio content up until that point.
The first radio network
In 1926, RCA set up the first radio network, NBC. They decided it was more effective and efficient to produce shows in New York City, and then link the main radio station with stations all across the country, connected by AT&T (another RCA company) phone lines. (Now television networks are linked by satellite to their affiliates).
This was the beginning of the network affiliates system. The ideal network makes sure everyone in the country is capable of listening to their signal. NBC at the time had two philosophies:
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Radio content was a "public service," whose function was to sell radios.
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Radio content was designed to generate income from advertising.
History of the Media In 1927, the second network was formed. It was CBS, started by William Paley. Paley was the first to think that networks could make money strictly from advertising, not even getting involved in the sales of radios. Like AT&T, CBS did not make radios. From the start, they made their money from selling advertising.
The rising of radio networks caused the Radio Act of 1927 to be passed, which established the FRC, or what is now known as the FCC, to allocate broadcast licenses. The need for such an organization was brought on by the fact that airwaves
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