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Introduction to Communications MediaCh 7 Radio

+Birth of Commercial Radio

After WWI, RCA (Radio Corporation of America) formed Radio was originally thought of simply as “wireless

telegraphy” David Sarnoff saw its potential as a “radio music box” Early radio stations were often built by department

stores (paved the way for mixed entertainment/advertising format we’re familiar with today)

In early 1900s, department stores were usually “early adopters” and where people often first experienced new technologies such as electric lights

+Commercialization of Radio

Early stations originally did without advertising As broadcasting became more expensive, station

owners needed to generate revenue Early ideas included asking listeners to donate

money, others wanted a tax on radio tubes, AT&T eventually decided to sell time on one of its stations to anyone who wanted to broadcast a message

+Networks

Networks developed as a cost savings idea By linking together, stations could save money

on producing programming Networked stations also could reach a wider

audience and charge more for advertising 1926 -- NBC was the first broadcasting

network (turned into two RCA’s original stations and then AT&T’s stations when the phone company got out of the radio business)

+Networks (cont)

CBS started up the next year By 1937 NBC had 111 affiliates and CBS 105 Advertisers were spending more than $27

million a year on advertising Increased revenue meant networks could

hire “name” talent Top programs developed a national audience

+Government Regulation

In the 1920s, so many new stations were going on the air that interference became a problem

Congress passed the Radio Act of 1927 creating the FRC (Federal Radio Commission)

The FRC issued licenses, defined the AM frequency band, standardized station channel designations and abolished portable radio stations

+Shaping the Industry

By the end of the 1920s, radio’s framework was in place Commercially supported Federally regulated Network dominated

+The Great Depression

Advertising stayed high, so the radio industry suffered little hardship

FCC (Federal Communications Commission) developed via the Communications Act of 1934 (consolidated regulatory functions of several government agencies

+The Depression Years

1930s FM (frequency modulated radio) introduced

Programming changed to reflect the need for hope and diversion (action/adventure, soap operas)

+Post World War II

Development of FM suffered as it competed with Television

FCC gave TV frequency spectrum FM had been using and moved FM to 88 to 108 Mhz band making many FM radios obsolete

Emergence of television challenges radio’s primacy in mass entertainment

While TV didn’t reduce radio advertising revenues it did lead to a decline in the number of radio affiliates

+Payola

More airplay a song gets, the better it sells

Record promoters began paying DJs to air certain records more frequently (this practice is eventually outlawed)

Promoters find new, legal ways of paying to promote airplay (“legal payola”)

+Growth and Stabilization

From 1955 to 1990 number of stations grew from 3,343 to more than 7,000

Top 40 format becomes popular Favorite of young people (who happen to have

a lot of disposable income)

FM gains popularity in part because of its better sound quality

Number of FM stations triples from 1960 to 70 and many AM stations switch to News/Talk format

+Consolidation and Specialization

Telecommunications Act of 1996 allows companies to own more stations and more stations in the same market

This change allows for a major industry realignment Giant radio conglomerates form as big

companies buy up stations

Radio programming becomes more specialized

+Radio in the Digital Age

Radio stations use their web sites to: Stream audio Help listeners become more familiar with

station on-air personalities Publish schedules, and movie and album

reviews Sell ads to generate additional revenue

+High Definition (HD) Radio

Improved signal quality

Stations can broadcast multiple programs at once (one on analog signal, one on digital signal)

HD radio is free (need an HD receiver) unlike satellite radio

As of 2007 about 1,200 radio stations were broadcasting an HD signal with more going digital every month

+Problems Facing HD Radio

Receivers are expensive

HD radio only results in better quality, not new capabilities

HD radio has not broken new ground

Only a small percentage of listeners have HD receivers

HD radio uses more power than analog draining batteries much faster