The National Broadcasting Company (NBC) Is Founded (Great Events from History II: Business and Commerce Series)
Article abstract: David Sarnoff founded the National Broadcasting Company in 1926, creating the first permanent radio network.
Summary of Event
The successful use of radio by the U.S. Navy in World War I and an emerging view that the national interest of the United States required the development of this new technology by strictly American hands led to the formation of the Radio Corporation of America (RCA) in 1919. The new company, formed by a combination of the industrial giants General Electric (GE), American Telephone and Telegraph (AT&T), Western Electric, and Westinghouse, was not without its problems. Patent conflicts and disagreements over commercial boundaries did much to impede the early progress of radio. In fact, forward movement was achieved only after an agreement that clearly delineated the spheres of industrial influence for each member of the new conglomerate. Under the accord, AT&T gained control over both wire and wireless telephone communications, and GE and Westinghouse received RCA patents to manufacture equipment.
Fortunately for RCA and the development of radio broadcasting, the narrow operating purview adopted early on by RCA leadership was widened through the insistent efforts and vision of David Sarnoff. Sarnoff, a commercial manager for RCA and an early intimate of Guglielmo Marconi, a pioneer in radio development, foresaw both the cultural and commercial possibilities of...
(The entire section is 2104 words.)
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