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Paley at CBS was the first to fully realize that profitability depended primarily on maximizing the sales of commercials, which in turn meant reaching as large an upscale audience as possible.Surveys and polls could be used to determine not only the size of the audience, but their affluence.
That decision was sustained by the Supreme Court in a 1943 decision, National Broadcasting Co. United States, which established the framework that the "scarcity" of radio-frequency meant that broadcasting was subject to greater regulation than other media.In the 21st century, radio has been adjusting to the arrival of the Internet and Internet radio.The beginning of regular, commercially licensed radio broadcasting in the United States in 1920, along with the concurrent development of sound and color film in that decade, ended the print monopoly of mass media and opened the doors to the immediate (and pervasive) electronic media.Frank Stanton, the president of CBS, worked with Columbia University sociologist Paul Lazarsfeld to develop techniques for measuring audiences.Before Paley, owners typically viewed their stations as stand-alone outlets or as the broadcast equivalent of local newspapers. Individual stations bought programming from the network and, thus, were considered the network's clients.This Blue Network network became the American Broadcasting Company (ABC).
Around 1946, ABC, NBC, and CBS began regular television broadcasts.
By 1928, the United States had three national radio networks: two owned by NBC (the National Broadcasting Company), and one by CBS (the Columbia Broadcasting System).
Until 1943, there were four major national radio networks: two owned by NBC, one owned by CBS and one owned by Mutual Broadcasting System.
By 1919, after the war, radio pioneers across the country resumed transmissions. Many early stations were started by newspapers worried radio might replace their newspapers. KDKA received the first federal license and began broadcasting on November 2, 1920.
Its signal covered much of the country, and its very existence encouraged young men to build crystal sets (with ear phones) to listen to the new technical marvel.
Paley changed the business model by looking at national advertisers as the critical element.