When Westinghouse engineer Frank Conrad set up a crude radio studio above his Pittsburgh garage in 1916, placing a microphone in front of a phonograph to broadcast music and news to his friends (whom Conrad supplied with receivers) two evenings a week on experimental station 8XK, he unofficially became one of the medium’s first disc jockeys. In 1920, a Westinghouse executive, intrigued by Conrad’s curious hobby, realized the potential of radio as a mass medium. Westinghouse then established station KDKA, which is generally regarded as the first commercial broadcast station. KDKA is most noted for airing national returns from the Cox–Harding presidential election on November 2, 1920, an event most historians consider the first professional broadcast.

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Other amateur broadcasters could also lay claim to being first. One of the earliest stations, operated by Charles “Doc” Herrold in San Jose, California, began in 1909 and later became KCBS. Additional experimental stations—in places like New York; Detroit; Medford, Massachusetts; and Pierre, South Dakota—broadcast voice and music prior to the establishment of KDKA. But KDKA’s success, with the financial backing of Westinghouse, signaled the start of broadcast radio.

In 1921, the U.S. Commerce Department officially licensed five radio stations for operation; by early 1923, more than six hundred commercial and noncommercial stations were operating. Some stations were owned by AT&T, GE, and Westinghouse, but many were run by amateurs or were independently owned by universities or businesses. By the end of 1923, as many as 550,000 radio receivers, most manufactured by GE and Westinghouse, had been sold for about $55 each (about $701 in today’s dollars). Just as the “guts” of the phonograph had been put inside a piece of furniture to create a consumer product, the vacuum tubes, electrical posts, and bulky batteries that made up the radio receiver were placed inside stylish furniture and marketed to households. By 1925, 5.5 million radio sets were in use across America, and radio was officially a mass medium.

Building the First Networks

In a major power grab in 1922, AT&T, which already had a government-sanctioned monopoly in the telephone business, decided to break its RCA agreements in an attempt to monopolize radio as well. Identifying the new medium as the “wireless telephone,” AT&T argued that broadcasting was merely an extension of its control over the telephone. Ultimately, the corporate giant complained that RCA had gained too much monopoly power. In violation of its early agreements with RCA, AT&T began making and selling its own radio receivers.

In the same year, AT&T started WEAF (now WNBC) in New York, the first radio station to regularly sell commercial time to advertisers. AT&T claimed that under the RCA agreements it had the exclusive right to sell ads, which AT&T called toll broadcasting. Most people in radio at the time recoiled at the idea of using the medium for crass advertising, viewing it instead as a public information service. In fact, stations that had earlier tried to sell ads received “cease and desist” letters from the Department of Commerce. But by August 1922, AT&T had nonetheless sold its first ad to a New York real estate developer for $50. The idea of promoting the new medium as a public service, along the lines of today’s noncommercial National Public Radio (NPR), ended when executives realized that radio ads offered another opportunity for profits long after radio-set sales had saturated the consumer market.

The initial strategy behind AT&T’s toll broadcasting idea was an effort to conquer radio. By its agreements with RCA, AT&T retained the rights to interconnect the signals between two or more radio stations via telephone wires. In 1923, when AT&T aired a program simultaneously on its flagship WEAF station and on WNAC in Boston, the phone company created the first network: a cost-saving operation that links (at that time, through special phone lines; today, through satellite relays) a group of broadcast stations that share programming produced at a central location. By the end of 1924, AT&T had interconnected twenty-two stations to air a talk by President Calvin Coolidge. Some of these stations were owned by AT&T, but most simply consented to become AT&T “affiliates,” agreeing to air the phone company’s programs. These network stations informally became known as the telephone group and later as the Broadcasting Corporation of America (BCA).

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In response, GE, Westinghouse, and RCA interconnected a smaller set of competing stations, known as the radio group. Initially, their network linked WGY in Schenectady, New York (then GE’s national headquarters), and WJZ in Manhattan. The radio group had to use inferior Western Union telegraph lines when AT&T denied them access to telephone wires. By this time, AT&T had sold its stock in RCA and refused to lease its lines to competing radio networks. The telephone monopoly was now enmeshed in a battle to defeat RCA for control of radio.

This clash, among other problems, eventually led to a government investigation and an arbitration settlement in 1925. In the agreement, the Justice Department, irritated by AT&T’s power grab, redefined patent agreements. AT&T received a monopoly on providing the wires, known as long lines, to interconnect stations nationwide. In exchange, AT&T sold its BCA network to RCA for $1 million and agreed not to reenter broadcasting for eight years (a banishment that actually extended into the 1990s).

Sarnoff and NBC: Building the “Blue” and “Red” Networks

After Lee De Forest, David Sarnoff was among the first to envision wireless telegraphy as a modern mass medium. From the time he served as Marconi’s personal messenger (at age fifteen), Sarnoff rose rapidly at American Marconi. He became a wireless operator, helping relay information about the Titanic survivors in 1912. Promoted to a series of management positions, Sarnoff was closely involved in RCA’s creation in 1919, when most radio executives saw wireless merely as point-to-point communication. But with Sarnoff as RCA’s first commercial manager, radio’s potential as a mass medium was quickly realized. In 1921, at age thirty, Sarnoff became RCA’s general manager.

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After RCA bought AT&T’s telephone group network (BCA), Sarnoff created a new subsidiary in September 1926 called the National Broadcasting Company (NBC). Its ownership was shared by RCA (50 percent), General Electric (30 percent), and Westinghouse (20 percent). This loose network of stations would be hooked together by AT&T long lines. Shortly thereafter, the original telephone group became known as the NBC-Red network, and the radio group (the network established by RCA, GE, and Westinghouse) became the NBC-Blue network.

Although NBC owned a number of stations by the late 1920s, many independent stations also began affiliating with the NBC networks to receive programming. NBC affiliates, though independently owned, signed contracts to be part of the network and paid NBC to carry its programs. In exchange, NBC reserved time slots, which it sold to national advertisers. NBC centralized costs and programming by bringing the best musical, dramatic, and comedic talent to one place, where programs could be produced and then distributed all over the country. By 1933, NBC-Red had twenty-eight affiliates, and NBC-Blue had twenty-four.

Network radio may have actually helped modernize America by de-emphasizing the local and the regional in favor of national programs broadcast to nearly everyone. For example, when Charles Lindbergh returned from the first solo transatlantic flight in 1927, an estimated twenty-five to thirty million people listened to his welcome-home party on the six million radio sets then in use. At the time, it was the largest shared audience experience in the history of any mass medium.

David Sarnoff’s leadership at RCA was capped by two other negotiations that solidified his stature as the driving force behind radio’s development as a modern medium: cutting a deal with General Motors for the manufacture of car radios (under the brand name Motorola) in 1929, and merging RCA with the Victor Talking Machine Company. Afterward, until the mid-1960s, the company was known as RCA Victor, adopting as its corporate symbol the famous terrier sitting alertly next to a Victrola radio-phonograph. The merger gave RCA control over Victor’s records and recording equipment, making the radio company a major player in the sound recording industry. In 1930, David Sarnoff became president of RCA, and he ran it for the next forty years.

Government Scrutiny Ends RCA-NBC Monopoly

As early as 1923, the Federal Trade Commission had charged RCA with violations of antitrust laws, but the FTC allowed the monopoly to continue. By the late 1920s, the government, concerned about NBC’s growing control over radio content, intensified its scrutiny. Then, in 1930, federal marshals charged RCA-NBC with a number of violations, including exercising too much control over manufacturing and programming. The government had originally sanctioned a closely supervised monopoly for wireless communication, but following the collapse of the stock market in 1929, the public became increasingly distrustful of big business.

RCA acted quickly. To eliminate its monopolizing partnerships, Sarnoff’s company proposed buying out GE’s and Westinghouse’s remaining shares in RCA’s manufacturing business. Now RCA would compete directly against GE, Westinghouse, and other radio manufacturers, encouraging more competition in the radio manufacturing industry. In 1932, days before the antitrust case against RCA was to go to trial, the government accepted RCA’s proposal for breaking up its monopoly. Ironically, in the mid-1980s, GE bought RCA, a shell of its former self and no longer competitive with foreign electronics firms.11 GE was chiefly interested in RCA’s brand-name status and its still-lucrative subsidiary, NBC.

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CBS and Paley: Challenging NBC

Even with RCA’s head start and its favored status, the two NBC networks faced competitors in the late 1920s. The competitors, however, all found it tough going. One group, United Independent Broadcasters (UIB), even lined up twelve prospective affiliates and offered them $500 a week for access to ten hours of station time in exchange for quality programs. UIB was cash-poor, however, and AT&T would not rent the new company its lines to link the affiliates.

Enter the Columbia Phonograph Company, which was looking for a way to preempt RCA’s merger with the Victor Company, then the record company’s major competitor. With backing from Columbia, UIB launched the new Columbia Phonograph Broadcasting System (CPBS), a wobbly sixteen-affiliate network, in 1927. But after losing $100,000 in the first month, the record company pulled out. Later, CPBS dropped the word Phonograph from its title, creating the Columbia Broadcasting System (CBS).

In 1928, William Paley, the twenty-seven-year-old son of Sam Paley, owner of a Philadelphia cigar company, bought a controlling interest in CBS to sponsor the cigar brand, La Palina. One of Paley’s first moves was to hire the public relations pioneer Edward Bernays to polish the new network’s image. (Bernays played a significant role in the development of the public relations industry; see Chapter 12.) Paley and Bernays modified a concept called option time, in which CBS paid affiliate stations $50 per hour for an option on a portion of their time. The network provided programs to the affiliates and sold ad space or sponsorships to various product companies. In theory, CBS could now control up to twenty-four hours a day of its affiliates’ radio time. Some affiliates received thousands of dollars per week merely to serve as conduits for CBS programs and ads. Because NBC was still charging some of its affiliates as much as $96 a week to carry its network programs, the CBS offer was extremely appealing.

By 1933, Paley’s efforts had netted CBS more than ninety affiliates, many of them defecting from NBC. Paley also concentrated on developing news programs and entertainment shows, particularly soap operas and comedy-variety series. In the process, CBS successfully raided NBC, not just for affiliates but for top talent as well. Throughout the 1930s and 1940s, Paley lured a number of radio stars from NBC, including Jack Benny, Frank Sinatra, George Burns, Gracie Allen, and Groucho Marx. During World War II, Edward R. Murrow’s powerful firsthand news reports from bomb-riddled London established CBS as the premier radio news network, a reputation it carried forward to television. In 1949, near the end of big-time network radio, CBS finally surpassed NBC as the highest-rated network. Although William Paley had intended to run CBS only for six months to help get it off the ground, he ultimately ran it for more than fifty years.

Bringing Order to Chaos with the Radio Act of 1927

In the 1920s, as radio moved from narrowcasting to broadcasting, the battle for more frequency space and less channel interference intensified. Manufacturers, engineers, station operators, network executives, and the listening public demanded action. Many wanted more sweeping regulation than the simple licensing function granted under the Radio Act of 1912, which gave the Commerce Department little power to deny a license or to unclog the airwaves.

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Beginning in 1924, Commerce Secretary Herbert Hoover ordered radio stations to share time by setting aside certain frequencies for entertainment and news, and others for farm and weather reports. To challenge Hoover, a station in Chicago jammed the airwaves, intentionally moving its signal onto an unauthorized frequency. In 1926, the courts decided that based on the existing Radio Act, Hoover had the power only to grant licenses, not to restrict stations from operating. Within the year, two hundred new stations clogged the airwaves, creating a chaotic period in which nearly all radios had poor reception. By early 1927, sales of radio sets had declined sharply.

To restore order to the airwaves, Congress passed the Radio Act of 1927, which stated an extremely important principle—licensees did not own their channels but could only license them as long as they operated to serve the “public interest, convenience, or necessity.” To oversee licenses and negotiate channel problems, the 1927 act created the Federal Radio Commission (FRC), whose members were appointed by the president. Although the FRC was intended as a temporary committee, it grew into a powerful regulatory agency. With passage of the Communications Act of 1934, the FRC became the Federal Communications Commission (FCC). Its jurisdiction covered not only radio but also the telephone and the telegraph (and later television, cable, and the Internet). More significantly, by this time Congress and the president had sided with the already-powerful radio networks and acceded to a system of advertising-supported commercial broadcasting as best serving the “public interest, convenience, or necessity,” overriding the concerns of educational, labor, and citizen broadcasting advocates.12 (See Table 5.1.)

In 1941, an activist FCC went after the networks. Declaring that NBC and CBS could no longer force affiliates to carry programs they did not want, the government outlawed the practice of option time, which Paley had used to build CBS into a major network. The FCC also demanded that RCA sell one of its two NBC networks. RCA and NBC claimed that the rulings would bankrupt them. The Supreme Court sided with the FCC, however, and RCA eventually sold NBC-Blue to a group of businessmen for $8 million in the mid-1940s. It became the American Broadcasting Company (ABC). These government crackdowns brought long-overdue reform to the radio industry, but they had not come soon enough to prevent considerable damage to noncommercial radio.

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The Golden Age of Radio

Many programs on television today were initially formulated for radio. The first weather forecasts and farm reports on radio began in the 1920s. Regularly scheduled radio news analysis started in 1927, with H. V. Kaltenborn, a reporter for the Brooklyn Eagle, providing commentary on AT&T’s WEAF. The first regular network news analysis began on CBS in 1930 and featured Lowell Thomas, who would remain on radio for forty-four years.

Early Radio Programming

Early on, only a handful of stations operated in most large radio markets, and popular stations were affiliated with CBS, NBC-Red, or NBC-Blue. Many large stations employed their own in-house orchestras and aired live music daily. Listeners had favorite evening programs, usually fifteen minutes long, to which they would tune in each night. Families gathered around the radio to hear such shows as Amos ’n’ Andy, The Shadow, The Lone Ranger, The Green Hornet, and Fibber McGee and Molly, or one of President Franklin Roosevelt’s fireside chats.

Among the most popular early programs on radio, the variety show was the forerunner to popular TV shows like the Ed Sullivan Show. The variety show, developed from stage acts and vaudeville, began with the Eveready Hour in 1923 on WEAF. Considered experimental, the program presented classical music, minstrel shows, comedy sketches, and dramatic readings. Stars from vaudeville, musical comedy, and New York theater and opera would occasionally make guest appearances.

By the 1930s, studio-audience quiz shows—Professor Quiz and the Old Time Spelling Bee—had emerged. Other quiz formats, used on Information Please and Quiz Kids, featured guest panelists. The quiz formats were later copied by television, particularly in the 1950s. Truth or Consequences, based on a nineteenth-century parlor game, first aired on radio in 1940 and featured guests performing goofy stunts. It ran for seventeen years on radio and another twenty-seven years on television, influencing TV stunt shows like CBS’s Beat the Clock in the 1950s and NBC’s Fear Factor in the early 2000s.

Dramatic programs, mostly radio plays that were broadcast live from theaters, developed as early as 1922. Historians mark the appearance of Clara, Lu, and Em on WGN in 1931 as the first soap opera. One year later, Colgate-Palmolive bought the program, put it on NBC, and began selling the soap products that gave this dramatic genre its distinctive nickname. Early “soaps” were fifteen minutes in length and ran five or six days a week. By 1940, sixty different soap operas occupied nearly eighty hours of network radio time each week.

Most radio programs had a single sponsor that created and produced each show. The networks distributed these programs live around the country, charging the sponsors advertising fees. Many shows—the Palmolive Hour, General Motors Family Party, the Lucky Strike Orchestra, and the Eveready Hour among them—were named after the sole sponsor’s product.

Radio Programming as a Cultural Mirror

The situation comedy, a major staple of TV programming today, began on radio in the mid-1920s. By the early 1930s, the most popular comedy was Amos ’n’ Andy, which started on Chicago radio in 1925 before moving to NBC-Blue in 1929. Amos ’n’ Andy was based on the conventions of the nineteenth-century minstrel show and featured black characters stereotyped as shiftless and stupid. Created as a blackface stage act by two white comedians, Charles Correll and Freeman Gosden, the program was criticized as racist. But NBC and the program’s producers claimed that Amos ’n’ Andy was as popular among black audiences as among white audiences.13

Amos ’n’ Andy also launched the idea of the serial show: a program that featured continuing story lines from one day to the next. The format was soon copied by soap operas and other radio dramas. Amos ’n’ Andy aired six nights a week from 7:00 to 7:15 P.M. During the show’s first year on the network, radio-set sales rose nearly 25 percent nationally. To keep people coming to restaurants and movie theaters, owners broadcast Amos ’n’ Andy in lobbies, rest rooms, and entryways. Early radio research estimated that the program aired in more than half of all radio homes in the nation during the 1930–31 season, making it the most popular radio series in history. In 1951, it made a brief transition to television (Correll and Gosden sold the rights to CBS for $1 million), becoming the first TV series to have an entirely black cast. But amid a strengthening Civil Rights movement and a formal protest by the NAACP (which argued that “every character is either a clown or a crook”), CBS canceled the program in 1953.14

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The Authority of Radio

The most famous single radio broadcast of all time was an adaptation of H. G. Wells’s War of the Worlds on the radio series Mercury Theater of the Air. Orson Welles produced, hosted, and acted in this popular series, which adapted science fiction, mystery, and historical adventure dramas for radio. On Halloween eve in 1938, the twenty-three-year-old Welles aired the 1898 Martian invasion novel in the style of a radio news program. For people who missed the opening disclaimer, the program sounded like a real news report, with eyewitness accounts of battles between Martian invaders and the U.S. Army.

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The program created a panic that lasted several hours. In New Jersey, some people walked through the streets with wet towels around their heads for protection from deadly Martian heat rays. In New York, young men reported to their National Guard headquarters to prepare for battle. Across the nation, calls jammed police switchboards. Afterward, Orson Welles, once the radio voice of The Shadow, used the notoriety of this broadcast to launch a film career. Meanwhile, the FCC called for stricter warnings both before and during programs that imitated the style of radio news.