Lecture 4Outline of Last Lecture I. The TelephoneOutline of Current Lecture II. The Radio BasicsIII. The Radio in the BeginningCurrent Lecture- The Radio Basicso Guerilla radio-stations that operate without a license Can pretty much play and do whatever they want Radio licenses are given out by the FCC- Public interest is thought of when you get radio licenses- Prohibits certain things since anyone can listen to the stations regardless of ageo Excludability problem-no control over who listens to it or interferes with ito Radio is always limited by rangeo Radio is not an expensive technology Amateurs were able to create radios out of miscellaneous things around their house Things that were making the technology better or worse:- Transmission distance(wattage)- Clarity(frequency spillover)- More uses makes it more valuable- There are economies of scale limitationso 1912 is the first time you see licensing of an abstract thing such as the wirelesso How do you create a business model from the wireless? There are political consequences and the excludability problem Through the use of advertising eventually- Before this they tried to profit off of the sales of the radioo Wasn’t very sustainable- First ads weren’t really ads, but were still ads at the same timeo BBC was funded by taxeso US radio has to get funding from ads 1920-1922 was when radio really became broadcast radio- In 1923 there were over 500 broadcast stationso Cost for the radio device went upo 1924 over 2 million stations More interference Government would have to step in to regulate T207 1st Edition This is an example of tragedy of the commons- The Radio in the Beginningo Guiermo Marconi was considered the father of radio There were other inventors that helped make radio what it is today- Lee de Forest discovered things that were already discovered- Edward Howard Armstrong wanted to enlighten people- David Sarnoff created a powerful communications companyo Lee de Forest  Probably the man most responsible for bringing broadcast radio to the American public Marconi company had made it to America by 1899- Transmitted first dot and dash message in 1896- Marconi seemed to always be ahead of de Forest de Forest became president of the de Forest wireless telegraph company Spade detector- Sent 572 words to England from Coney Island wireless station- Technically stole this idea from someone else Audion tube was something his ex-business partner thought was worthless- First radio tube- de Forest didn’t quite understand how it worked- October 1907=> Ferrar was the first singer to be heard on the radioo de Forest could technically be seen as the first broadcaster and DJ eventually would start a fourth radio company and would broadcast from a real radio stationo in 1915 de Forest and Marconi begin to get in patent fights divided up the market both were using each other’s patents illegallyo military blocked patent disputes during WWI 400 radio operators trained a month during this Golden age of radio invention- All inventors pooled their patentso RCA was created in the 1920s Pooled 1200 to 2000 patents to take down British Marconi and American Marconi AT&T was part of this and did a lot of research and development- Partial minority stakeholder in RCAo Essentially competing against itself- 1926 AT&T liquidated RCA assets back to RCAo Promised to stay out of radio as long as RCA stayed out of the telephone industryo 1922- 2 out of 1000 households had a radioo 1925- 10 out of 100 households had a radioo 1909- Public Performer Right Broadcasting songs over the radio was covered by copyrights Just the same as if a performer performed a song of someone else’s to a large audienceo 1920 to 1927 was a big time for radio There was enough interference for regulation More people owned radios More stations were