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Broadcasting is a business model of transmitting radio and television programming to a number of receivers that belong to a large group. This group may be the public in general, or a relatively large audience within the public in general.

Business Models of Broadcasting

There are several dominant business models of broadcasting. Each differs in the method by which stations are funded:

• By direct government payments
• By indirect government payments, such as radio and television licenses
• By grants from foundations or business entities
• By selling advertisments
• By public subscription

Broadcasters may rely on a combination of these four dominant business models. For example, National Public Radio, a non-commerical network within the United States, receives grants from the Corporation for Public Broadcasting, which in turn receives funding from the U.S. government; by public subscription; and by selling "extended credits" to corporations.

History of Broadcasting

Beginning to the Second World War

United States

In the United States, the first broadcast station, KDKA in Pittsburgh, Pennsylvania, began in 1920. The technology became very popular, and many cities, churches, schools, and businesses started their own broadcast stations.

The National Broadcasting Company began regular broadcasting in 1922, with telephone links between New York and other Eastern cities. NBC became the dominant radio network, splitting into Red and Blue networks.

The Columbia Broadcasting System began in 1927 under the guidance of William Paley.

Several independent stations formed the Mutual Broadcasting System to exchange syndicated programming, including The Lone Ranger and Amos 'n' Andy.

United Kingdom

Canada

Europe

The Soviet Union

The Second World War and Afterwards

A Federal antitrust decision in 1943 required NBC to divest itself of its Blue network. This network became the American Broadcasting Corporation (ABC).

The 1950s and 1960s

Television began to replace radio as the chief source of revenue for broadcasting networks. Although many radio programs continued through this decade, including Gunsmoke and The Guiding Light, by 1960 networks had ceased producing entertainment programs.

As radio stopped producing formal fifteen-minute to hourly programs, a new format developed, based on a continuous rotation of short pop songs, "Top 40," presented by a "disk jockey." Famous disk jockeys in the era included Alan Freed, Dick Clark, Don Imus and Wolfman Jack. Top 40 playlists were theoretically based on record sales; however, record companies began to bribe disk jockeys to play selected artists, in what was called payola.

United States

The 1970s, 1980s, and 1990s

The introduction of FM changed the listening habits of younger Americans. Many stations such as WNEW in New York City began to play whole sides of record albums, as opposed to the "Top 40" model of two decades earlier.

In the 1980s, the Federal Communications Commission, under Reagan Administration and Congressional pressure, changed the rules limiting the number of radio and television stations a business entity could own in one metropolitan area. This deregulation led to several groups, such as Infiniti Broadcasting and Clear Channel to buy many stations in major cities. The cost of these stations' purchases led to a conservative approach to broadcasting, including limited playlists and avoiding controversial subjects to not offend listeners, and increased commericals to increase revenue.

The 2000s

NOTE: Please see Talk:Broadcasting to discuss how we should approach this subject --GABaker