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Evolution of Commercial Radio: Birth to Digital Age

Explore the journey of commercial radio from its birth in the early 1900s to the challenges faced by HD radio in the digital age. Learn about the impact of government regulation, the rise of networks, and the development of FM radio. Discover how the industry has evolved, consolidated, and specialized over time, leading to the introduction of HD Radio with improved signal quality and multiple broadcasting capabilities.

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Evolution of Commercial Radio: Birth to Digital Age

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  1. Introduction to Communications Media Ch 7 Radio

  2. 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

  3. 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

  4. 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)

  5. 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

  6. 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

  7. Shaping the Industry • By the end of the 1920s, radio’s framework was in place • Commercially supported • Federally regulated • Network dominated

  8. 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

  9. The Depression Years • 1930s FM (frequency modulated radio) introduced • Programming changed to reflect the need for hope and diversion (action/adventure, soap operas)

  10. 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

  11. 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”)

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

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