Today, many of us rely on networks such as NBC, CBS and ABC for our morning talk shows, evening laughs and nightly news reports. These stations are provided via basic cable unlike other commercial free channels like HBO. Networks on basic cable rely on advertising to pay the network for its usage. The idea of a company required to pay for their advertisement on a network is a “win, win” for all parties. The viewer does not directly have to pay to watch the network. (I am proud to say I have watched NBC and CBS many occasions via antenna.) The network gets funded by advertisements and the company advertising benefits from the exposure from being on the network. This concept dates back before television was even invented. A time period that Woody Allen likes to call the “Radio Days."
It was in the 1920’s when institutions such as broadcasting networks played a vital role in the foundation of radio. American Telephone & Telegraph (otherwise known as AT&T) was the first broadcasting network. In 1926, the government opposed AT&T’s dominance in both radio and telephone communications. They were forced to sell their broadcasting rights to RCA, in which named their broadcasting network NBC. It did not take long until NBC had a rival competitor called CBS. All this network evolution gives rise to a whole new meaning of the phrase “the roaring 20’s.” These institutions produced the programs on the radio, implying it was them who decided what the consumer listened to. The combination of music, news and entertainment played on these stations shaped the culture. People were now more aware of what was going on globally. Now families and friends had shows over the radio to discuss and create bonds over.
What these networks did through radio has shaped global broadcasting even in modern times. Take such examples as current local radio stations to national broadcasting
networks like CBS and NBC whose birth was in radio broadcasting. These crucial institutional factors began in the 1920’s, a time when the vision of radio as a commercial commodity by David Sarnoff was coming of age. These networks needed a source of funding. In 1922, AT&T was the first institution that used advertising as a means of financial support. AT&T charged companies a fee for the use of their
radio station, WEAF. The cost of the fee was based on the amount of airtime used. This way of funding evolved rapidly, manufactures were now sponsoring programs in attempt to promote goods. Advertisers began paying to have ads promoted on airtime. This type of economic flow should seem very familiar considering it is still prominent in today’s society.
On my way to school, most mornings I tune in to the morning show on 101X. The host continually reminds his viewers how delicious the wings are at Pluckers and that it is one of his favorite places to eat. It is no coincidence that Pluckers frequently advertises during commercials. As annoying as I find these redundant radio ads to be, they have proven to be successful. I find myself eating at Pluckers every couple of weeks. Whether it was luck or sheer genius, institutional factors in the 1920's such broadcasting networks and advertising strategies had a tremendous impact on the evolution of radio. Just the possibility that I might have never discovered Pluckers and their infamous "Dr. Pepper wings" without radio advertisements makes me quiver.
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