WEAF, the pioneer sponsored programme broadcasting station, being owned by the telephone company which also operated the long distance telephone service of the country, naturally served as an important centre for the development of commercial chain broadcasting. Arrangements were worked out whereby the cost of such service could be distributed equitably between the pro gramme sponsor and the individual chain stations using the pro gramme.
For advertising programmes the individual chain stations re ceived a portion of the chain rental charges paid by the advertiser. These stations could also obtain, by paying a fee, non-advertising programmes supplied by the central management of the chain.
In 1926 the National Broadcasting Company, organized by the General Electric Company, the Westinghouse Electric and Manu facturing Company, and the Radio Corporation of America, pur chased WEAF and undertook the management of WJZ and WRC owned by the Radio Corporation of America. The chain broad casting activities centring on these stations were continued and expanded.
Subsequently the Columbia Broadcasting Company and other similar companies were organized and the dissemination of pro grammes by wire circuits to chains of stations for simultaneous broadcast over large areas has come into general use. In 1934 the telephone companies had over ioo,000 miles of wire equipped for programme transmission in the United States. Typical chain lay outs included, among others: a "Red Network" joining S3 sta tions covering the country as far west as Denver, an "Orange Net work" joining 11 radio stations covering the Pacific coast and extending east into Montana, Utah and Arizona, a "Purple Net work" joining 83 stations spread over nearly the whole United States. On a special occasion 178 stations were connected into one network.
With the number of patents running into thousands it was a difficult task even to determine what patents might be infringed by given apparatus. In 1920 and 1921 several large electrical and communication companies which, taken together, controlled an important group of radio and other communication patents, en tered into a cross-licensing agreement whereby each of the com panies was enabled to proceed in its field with a satisfactory patent situation.
A considerable number of manufacturers and groups of patents were outside this arrangement but, after a period of negotiation and some litigation, licences were extended to the larger independ ent manufacturers under royalty agreements, and by 1927 it was generally possible for a responsible manufacturer to equip himself with such licences as would ensure him the right to put on the market receiving equipment of modern design.
The question arose as to whether the performance of a musical composition before a microphone in a private studio, so that it was broadcast by radio, constituted an infringement of copyright. The American Society of Composers, Authors and Publishers championed the cause of the holders of copyrights, and ulti mately established a recognition among broadcasters of the right of the copyright proprietors to compensation for the use of their compositions.
There was discord over the matter of equitable rates of com pensation, but by 1927 this seems to have been adjusted in most cases through private negotiations.
The rapid strides made in the perfection of sound pick-up and reproducing apparatus under the urge of radio broadcasting has had a stimulating effect upon other agencies for sound rendering. The phonograph, for example, is now to be found in greatly im proved form combined in the same cabinet with radio receiving sets so that the amplifier and loud-speaker portions may be used by either.
Another development related to broadcasting and often used in combination with broadcast pick-up of speakers in large halls or in open air is the public address system. By means of micro phones placed directly in front of the speaker and powerful amplifiers and loud-speakers or sound projectors appropriately located large crowds can be addressed successfully with reduced strain on both the speaker and his auditors.
Business Progress.—The phenomenal expansion of the radio broadcasting business which took place in 1921 and 1922 caused over-extension among many concerns and brought an inevitable reaction which was felt particularly in 1925 and 1926. A selected group of radio company stocks which was valued, in December 1924, at about 16o millions of dollars, had fallen to 65 millions by July 1926. There were many failures among the smaller concerns and the retail market was so flooded by manufacturers' over production that many sets were sold for far less than their original price.
This experience, as a whole, was not entirely a detriment to the industry, since it forced out unstable or ill-managed con cerns and caused the consolidation of others, while at the same time it tested and proved those concerns which came through it successfully. Since then the manufacture and merchandising of receiving equipment have reached a firmer basis.
In 1934 it is estimated that there were about 18,000,000 re ceiving sets in the United States which had cost $1,500,000,000 and which involved an annual upkeep expense of $200,000,000.
Organizations.—It is not possible to mention more than a few. The manufacturers have a Radio Manufacturers' Associa tion and a radio division in the National Electrical Manufacturers' Association. These are active in standardization work.
The National Association of Broadcasters interests itself in legislation and in general investigations for the benefit of its members, which include a majority of the broadcasting stations. Through the co-operative efforts of these various associations and other interests, radio fairs or shows are held for the exhibition of equipment. Large annual radio shows are held in New York and Chicago.
The Institute of Radio Engineers provides facilities for the discussion and publication of technical papers and the furtherance of standardization in fundamental radio instrumentalities. The National Advisory Council on Radio in Education is interested in educational broadcasting.
Future Tendencies.—To predict the future of broadcasting in America would be hazardous, but certain tendencies may be indicated. While the possibilities of educational and news broad casting have not been fully exploited, it seems certain that the amusement feature will continue to be dominant.
There are many technical improvements in sight which may be counted on to improve the quality of service rendered to listeners.
Added features of novelty are being experimented with, such, for instance, as the broadcasting of pictures, cartoons and the like, for facsimile reproduction in the home, by suitable attachments to broadcast receiving sets.
The technical progress in developing television has reached a point where the possibilities of extensive application in visual broadcasting by ultra short radio waves are limited more largely by the economic and business factors than by the technical prob lems.
In so far as interconnection of stations is concerned a new form of high frequency cable called "coaxial cable" has been de veloped by Bell Telephone engineers which is expected to facili tate chain distribution of visual programmes to broadcasting stations.