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94-537: The RCA Corporation was a major American electronics company, which was founded in 1919 as the Radio Corporation of America . It was initially a patent trust owned by General Electric (GE), Westinghouse , AT&T Corporation and United Fruit Company . In 1932, RCA became an independent company after the partners were required to divest their ownership as part of the settlement of a government antitrust suit. An innovative and progressive company, RCA

188-630: A brand name only; the various RCA trademarks are currently owned by Sony Music Entertainment and Vantiva , which in turn license the RCA brand name and trademarks to several other companies, including Voxx International , Curtis International, AVC Multimedia, TCL Corporation and Express LUCK International, Ltd. for their various products. RCA originated as a reorganization of the Marconi Wireless Telegraph Company of America (commonly called "American Marconi"). In 1897,

282-511: A $ 490 million company loss. Sperry Rand 's UNIVAC division took over the RCA computer division in January 1972. Univac did not want the Spectra computers because they were similar to its own 9000 series; instead, they wanted RCA's computer customer base. On January 1, 1965, Robert Sarnoff succeeded his father as RCA's president, although the elder Sarnoff remained in control as chairman of

376-400: A 60%–40% ratio in output between the two companies. Although the patent cross-licensing agreements had been intended to give the participants domination of equipment sales, the tremendous growth of the market led to fierce competition, and in 1925 RCA fell behind Atwater Kent as the leader in receiver sales. RCA was particularly hamstrung by the need to coordinate its sales within the limits of

470-607: A commercial version of his prototype system could be produced in a relatively short time for $ 100,000. Following what would actually be many years of additional research and millions of dollars, RCA demonstrated an all-electronic black-and-white television system at the 1939 New York World's Fair . RCA began regular experimental television broadcasting from the NBC studios to the New York metropolitan area on April 30, 1939, via station W2XBS, channel 1 (which evolved into WNBC channel 4) from

564-533: A company whose holdings included motion picture theaters. The theaters in which RKO had an interest provided a potential market for the RCA Photophone sound systems. RCA ownership of RKO stock expanded from about one quarter in 1930 to about 61% in 1932. RKO encountered severe financial problems, going into receivership from early 1933 until 1940. RCA sold its holdings in the studio to raise funds for its basic operations. After years of industry complaints that

658-405: A cross-licensing agreement, effective July 1, 1921, that included a concession that 40% of RCA's equipment purchases would be from Westinghouse. Following these transactions, GE owned 30.1% of RCA's stock, Westinghouse 20.6%, AT&T 10.3%, and United Fruit 4.1%, with the remaining 34.9% owned by individual shareholders. In 1930, RCA agreed to occupy the yet-to-be-constructed landmark skyscraper of

752-432: A fully independent company. As a result, GE and Westinghouse gave up their ownership interests in RCA, while RCA was allowed to keep its factories. To give RCA a chance to establish itself, GE and Westinghouse were required to refrain from competing in the radio business for the next two and one-half years. RCA began television development in early 1929, after an overly optimistic Vladimir K. Zworykin convinced Sarnoff that

846-859: A high-powered Alexanderson alternator , built by General Electric (GE), at the American Marconi transmitter site in New Brunswick, New Jersey. It proved to be superior for transatlantic transmissions to the Spark-gap transmitters that had been traditionally used by the Marconi companies. Marconi officials were so impressed by the capabilities of the Alexanderson alternators that they began making preparations to adopt them as their standard transmitters for international communication. A tentative plan made with General Electric proposed that over

940-522: A joint new company, RCA initially had little true interest in the phonograph record business. The management of RCA was interested essentially in Victor's superior sales capabilities through the record company's large network of authorized distributors and dealers, as well as the extensive, efficient manufacturing facilities in Camden, New Jersey . Immediately following the purchase of Victor, RCA began planning

1034-527: A lawyer and president of Grover & Baker, proposed that, rather than squander their profits on litigation, they pool their patents. This was the first patent pool, a process which enables the production of complicated machines without legal battles over patent rights. In 1917, the two major patent holders for airplanes, the Wright Company and the Curtiss Company, had effectively blocked

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1128-523: A license fee that does not change based on the number of patents that have expired. Since the 1990s, patent pools have been viewed by U.S. regulatory authorities in a positive light. In 1995, the U.S. Department of Justice (DOJ) and U.S. Federal Trade Commission (FTC) released the “Antitrust Guidelines for the Licensing of Intellectual Property” which stated that the pooling of patents may have “…pro-competitive benefits”. The Antitrust Division of

1222-471: A limited market of amateur radio enthusiasts. By 1922, the rise of broadcasting had dramatically increased the demand for radio equipment by the general public, and this development was reflected in the title of RCA's June 1, 1922, catalog, "Radio Enters the Home". RCA began selling receivers under the "Radiola" name, marketing equipment produced by GE and Westinghouse under the production agreement that allocated

1316-534: A major producer of vacuum tubes, which were branded Radiotron in the United States. Especially after the rise of broadcasting, they were a major profit source for the company. RCA's strong patent position meant that the company effectively set the selling prices for vacuum tubes in the U.S., which were significantly higher than in Europe, where Lee de Forest had allowed a key patent issued to him to lapse. RCA

1410-406: A major proponent of the 8-track tape cartridge , which it launched in 1965. Initially, the 8-track made a huge and profitable impact on consumers of recorded music. Sales of the 8-track tape format began to decline during the late 1970s when consumers increasingly favored the 4-track compact cassette tape format developed by Philips . RCA was one of a number of companies in the 1960s that entered

1504-474: A short distance from the match site, and operating under the call letters WJY . For the broadcast White and Sarnoff telephoned commentary from ringside, which was typed up and then read over the air by J. Owen Smith. The demonstration was a technical success, with a claimed audience of 300,000 listeners throughout the northeast. RCA quickly moved to expand its broadcasting activities. In the fall of 1921, it set up its first full-time broadcasting station, WDY , at

1598-545: A similar agreement with China in 1932. RCA claimed this was breach of contract on the grounds that its 1928 agreement had given it exclusive rights. The dispute went to arbitration, and in 1935 a decision, issued in Radio Corporation of America v China , concluded the Mackay concession was valid, because the earlier RCA concession had not granted exclusive rights. The introduction of organized radio broadcasting in

1692-775: A simple receiver using a curtain rod as an antenna, matching, at a small fraction of the cost, the performance of the massive alternator transmitters. In 1926, Harold H. Beverage further reported that a shortwave signal, transmitted on a 15-meter wavelength (approximately 20 MHz), was received in South America more readily during the daytime than the 200-kilowatt alternator transmissions. The Alexanderson alternators, control of which had led to RCA's formation, were now considered obsolete, and international radio communication would be primarily conducted using vacuum tube transmitters operating on shortwave bands. RCA would continue to operate international telecommunications services for

1786-612: A station's normal transmission frequency – Westinghouse's Frank Conrad unexpectedly found that in some cases the harmonics could be heard farther than the primary signal, something previously thought impossible, as high-frequency shortwave signals, which had poor groundwave coverage, were thought to have a very limited transmission range. In 1924, Conrad demonstrated to Sarnoff that a low-powered shortwave station in East Pittsburgh, Pennsylvania could be readily received in London by

1880-447: A transmission rate of a billion or more bits of information a second ... Eventually, a global communications network handling voice, data and facsimile will instantly link man to machine—or machine to machine—by land, air, underwater, and space circuits. [The computer] will affect man's ways of thinking, his means of education, his relationship to his physical and social environment, and it will alter his ways of living. ... [Before

1974-400: A two-year period the Marconi companies would purchase most of GE's alternator production. However, the U.S. Navy objected to the plan, fearing British domination in international radio communications and the national security concerns this raised. The Navy, claiming support from U.S. President Woodrow Wilson , looked for an alternative that would result in an "all-American" company taking over

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2068-456: Is to their collective benefit. For example, the insurance industry pools claims data to collectively reduce risk; the catalog sales industry pools sales data to better model their customers; the auto industry collaborates to standardize components; and in the software industry some companies actively contribute to open-source projects. Patent pools do not eliminate risk, they only temper it. Patent holders (including other patent pools) outside

2162-559: The MPEG-2 , MPEG-4 Part 2 and H.264 video coding standards, and the DVD6C pool. The MPEG-2 patent pool has also been criticized because by 2015 more than 90% of the MPEG-2 patents will have expired but as long as there are one or more active patents in the MPEG-2 patent pool in either the country of manufacture or the country of sale the MPEG-2 license agreement requires that licensees pay

2256-594: The Radio Frequency Identification (RFID) domain. The RFID Consortium picked Via Licensing to administer its patent pool in September 2006. As in these examples many industries could not function without patent pools since the coordination costs (risk, negotiation, etc.) would otherwise be too high. Patent pools are only one example of cases where members of an otherwise competitive industry join in common cause to create some resource that

2350-896: The Rockefeller Center complex, 30 Rockefeller Plaza , which in 1933 became known as the RCA Building (renamed the GE Building in 1988 and currently known as the Comcast Building after Comcast acquired NBC). This lease was critical for enabling the massive project to proceed as a commercially viable venture—David Rockefeller cited RCA's action as being responsible for "the salvation of the project". RCA's primary business objectives at its founding were to provide equipment and services for seagoing vessels, and "worldwide wireless" communication in competition with existing international undersea telegraph cables. To provide

2444-509: The cathode ray-tube (CRT) picture tube itself. The rapid rise of radio broadcasting during the early 1920s, which provided unlimited free entertainment in the home, had a detrimental effect on the American phonograph record industry. The Victor Talking Machine Company in Camden, New Jersey , was then the world's largest manufacturer of records and phonographs , including its popular showcase "Victrola" line. In January 1929, RCA purchased

2538-504: The 1970s, RCA's seemingly impregnable stature as a leader in technology, innovation and home entertainment began to weaken as the company attempted to expand beyond its main focus of the development and marketing of consumer electronics and communications into a diversified multinational conglomerate. Additionally, RCA began to face increasing domestic competition from international electronics firms such as Sony , Philips , Matsushita and Mitsubishi . RCA suffered enormous financial losses in

2632-545: The American Marconi assets. In April 1919, two naval officers, Admiral H. G. Bullard and Commander S. C. Hooper , met with GE president, Owen D. Young and requested a suspension of the pending alternator sales to the Marconi companies. This would leave General Electric without a buyer for its transmitters, so the officers proposed that GE purchase American Marconi, and use the assets to form its own radio communications subsidiary. Young consented to this proposal, which, effective November 20, 1919, transformed American Marconi into

2726-497: The DOJ later issued a letter in support of the MPEG-2 pool. However, stipulations exist to ensure pools do not function anti-competitively. As required by the DOJ, patents in the pool must be essential , non-substitutable and the owners must maintain the right to individually license their patents. In addition, the DOJ may monitor the royalty rates collected by the firm. Federal Telegraph Company The Federal Telegraph Company

2820-590: The FCC adopted a standard for color television that had been promoted by CBS, but the effort soon failed, primarily because the color broadcasts could not be received by existing black-and-white sets. As the result of a major research push, RCA engineers developed a method of "compatible" color transmissions that, through the use of interlacing, simultaneously broadcast color and black-and-white images, which could be picked up by both color and existing black-and-white sets. In 1953, RCA's all-electronic color television technology

2914-425: The FCC stepped in to limit its broadcasts. Following the adoption of National Television System Committee (NTSC) recommended standards, the FCC authorized the start of commercial television broadcasts on July 1, 1941. The entry of the United States into World War II a few months later greatly slowed its deployment, but RCA resumed selling television receivers almost immediately after the war ended in 1945. In 1950,

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3008-654: The GE/Westinghouse production quotas, and often had difficulty keeping up with industry trends. However, the company made a key advance in early 1924 when it began selling the first superheterodyne receivers, whose high level of performance increased the brand's reputation and popularity. RCA was the exclusive manufacturer of superheterodyne radio sets until 1930. All RCA receivers were battery powered until late 1927 when plug-in AC sets were introduced, providing another boost in sales. RCA inherited American Marconi's status as

3102-530: The Mackay Companies, when International Telephone and Telegraph (ITT) purchased the Mackay Companies in 1928 Federal remained a component of the Mackay structure as a manufacturing entity. In 1931, Dr. Ernest O. Lawrence , inventor of the cyclotron , convinced Federal Telegraph to donate an 80-ton magnet they had developed for a canceled project in China to his first cyclotron project on the campus of

3196-536: The NBC name and remained under RCA ownership until 1986. For two decades the NBC radio network's roster of stars provided ratings consistently surpassing those of its main competitor, the Columbia Broadcasting System (CBS). But in 1948, as the transition from radio to television was beginning, NBC's leadership came under attack due to what became known as the "Paley raids", named after the president of CBS, William S. Paley . After World War II

3290-491: The Radio Corporation of America. The decision to form the new company was promoted as a patriotic gesture. The corporate officers were required to be citizens of the United States, with a majority of the company stock to be held by U.S. citizens. Upon its founding, RCA was the largest radio communications firm in the United States. Most of the former American Marconi staff continued to work for RCA. Owen Young became

3384-656: The Roselle Park, New Jersey company plant. By 1923, RCA was operating three stations—WJZ (now WABC ) and WJY in New York City, and WRC (now WTEM ) in Washington, D.C. A restriction imposed by AT&T's interpretation of the patent cross-licensing agreements required that the RCA stations remain commercial free, and they were financed by profits from radio equipment sales. Beginning in 1922, AT&T became heavily involved in radio broadcasting, and soon became

3478-488: The U.S. entered the war in December 1941. During World War II, RCA was involved in radar and radio development in support of the war effort, and ranked 43rd among United States corporations in the value of wartime military production contracts. One such contract was to outfit the battleship USS Texas with a 400-megahertz pulse radar set, using technology developed by RCA acoustics scientist, Irving Wolff . During and after

3572-651: The United States entered World War II, the cornerstone was laid for a research and development facility in Princeton, New Jersey called RCA Laboratories. Led for many years by Elmer Engstrom , it was used to develop many innovations, including color television , the electron microscope , CMOS -based technology, heterojunction physics, optoelectronic emitting devices , liquid crystal displays (LCDs), videocassette recorders , direct broadcast television, direct broadcast satellite systems and high-definition television . RCA plants switched to war production shortly after

3666-480: The United States; JVC retained the 'Victor' and "His Master's Voice" trademarks for use in Japan only. In 1955, RCA sold its Estate brand of large appliance operations to Whirlpool Corporation . As part of this transaction, Whirlpool was given the right to market "RCA Whirlpool" appliances through the mid-1960s. RCA manufactured equipment for repairing radios, such as oscilloscopes. RCA Graphic Systems Division (GSD)

3760-726: The University of California Berkeley. Lawrence's invention of the cyclotron was the basis of his being awarded the Nobel Prize in 1939. In 1940, Sosthenes Behn moved Federal Telegraph under ITT directly so that its manufacturing capabilities could help ITT replace those in Europe that had been shut down because of the war and the Fall of France. In 1954, FTR changed its name from Federal Telegraph and Radio Corporation - an IT&T associate to Federal Telegraph and Radio Company - division of IT&T , and its research division became

3854-767: The Victor Talking Machine Company; this acquisition became known as the RCA Victor Division of the Radio Corporation of America, and included ownership of Victor's Japanese subsidiary, the Victor Company of Japan (JVC), formed in 1927 and controlling interest in The Gramophone Company Ltd. (later EMI Records ) in England. RCA's acquisition of the Victor company included the western hemisphere rights to

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3948-532: The Wireless Telegraph and Signal Company, Limited, was founded in London to promote the radio (then known as "wireless telegraphy") inventions of Guglielmo Marconi . As part of worldwide expansion, in 1899 American Marconi was organized as a subsidiary company, holding the rights to use the Marconi patents in the United States and Cuba. In 1912 it took over the assets of the bankrupt United Wireless Telegraph Company , and from that point forward it became

4042-619: The acting president of the National Amateur Wireless Association (NAWA), an organization originally formed by American Marconi which had been inherited by RCA. White agreed to recruit the NAWA membership for volunteers to provide assistance at the listening sites, and also enlisted David Sarnoff for financial and technical support. RCA was authorized to set up a temporary longwave radio station, located in Hoboken

4136-437: The area of vacuum tube technology and GE needed access to additional patents before its new subsidiary could be fully competitive. During this time American Marconi had been steadily falling behind others in the industry. The two companies entered into negotiations which resulted in a series of mutually beneficial cross-licensing agreements between themselves and various other companies in the industry. On July 1, 1920, an agreement

4230-549: The attic or basement. RCA Victor began selling the first all-electric Victrola in 1930 and in 1931 the company attempted to revitalize record sales with the introduction of 33 1 ⁄ 3 revolutions-per-minute (rpm) long play records, which were a commercial failure during the Great Depression, partly because the Victrolas with two speed turntables required to play them were exorbitantly expensive, and also because

4324-451: The audio performance of the new records was generally poor; the new format used the same groove size as existing 78 rpm records, and it would require the smaller-radius stylus of the later microgroove systems to achieve acceptable slower-speed performance. Additionally, the new long-play records were pressed in a pliable, vinyl-based material called "Victrolac" which wore out rapidly under the heavy tonearms then in use. In 1934, following

4418-471: The board. The younger Sarnoff sought to modernize RCA's image with the introduction in late 1968 of what was then a futuristic-looking new logo (the letters 'RCA' in block, modernized form), replacing the original lightning bolt logo, and the virtual retirement of both the Victor and Nipper/"His Master's Voice" trademarks. The RCA Victor Division was renamed RCA Records; the 'Victor' and 'Victrola' trademarks were no longer used on RCA consumer electronics. 'Victor'

4512-530: The building of new airplanes, which were desperately needed as the United States was entering World War I. The U.S. government, as a result of a recommendation of a committee formed by Franklin D. Roosevelt , then Assistant Secretary of the Navy , pressured the industry to form a patent pool , the Manufacturer's Aircraft Association . In August 2005, a patent pool was formed by about 20 companies active in

4606-429: The chairman of the board of the new company. Former American Marconi vice president and general manager E. J. Nally become RCA's first president. Nally was succeeded by Major General James G. Harbord , who served from 1922 until January 3, 1930, when Harbord replaced Owen Young as chairman of the board. David Sarnoff, who was RCA's founding general manager, became its third president on the same day. RCA worked closely with

4700-664: The company made a wide-ranging series of acquisitions, including Hertz (rental cars), Banquet (frozen foods and TV dinners ), Coronet (carpeting), Random House (publishing) and Gibson (greeting cards). However, the company was slipping into financial disarray, with wags calling it "Rugs Chickens & Automobiles" (RCA), to poke fun at its new direction. Patent pool In 1856, sewing machine manufacturers Grover & Baker , Singer , and Wheeler & Wilson , all accusing each other of patent infringement , met in Albany, New York to pursue their suits. Orlando B. Potter ,

4794-675: The costs of providing programming threatened to exceed the funds available from equipment profits. The problem was resolved in 1926 when AT&T unexpectedly decided to exit the radio broadcasting field. RCA purchased, for $ 1,000,000, AT&Ts two radio stations, WEAF and WCAP in Washington, D.C., as well as its network operations. These assets formed the basis for the creation of the National Broadcasting Company (NBC), with ownership divided between RCA (50%), General Electric (30%), and Westinghouse (20%) until 1930, when RCA assumed 100% ownership. This purchase also included

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4888-523: The cross-licensing agreements between RCA, GE, and Westinghouse had in effect created illegal monopolies, the U.S. Department of Justice brought antitrust charges against the three companies in May 1930. After much negotiation, in 1932 the Justice Department accepted a consent agreement that removed the restrictions established by the cross-licensing agreements, and also provided that RCA would become

4982-495: The debacle of its long-play record, RCA Victor introduced the Duo Jr., an inexpensive, small, basic electric turntable designed to be plugged into radio sets. The Duo Jr. was sold at cost, but was practically given away with the purchase of a certain number of Victor records. The Duo Jr.'s rock-bottom price helped to overcome the national apathy to phonographs, and record sales gradually began to recover. Around 1935, RCA began marketing

5076-478: The dominant radio communications company in the United States. When the United States entered World War I in April 1917, the federal government took control of most civilian radio stations to use them for the war effort. Although the government planned to restore civilian ownership of the radio stations once the war ended, many United States Navy officials hoped to retain a monopoly on radio communication even after

5170-450: The early 1920s resulted in a dramatic reorientation and expansion of RCA's business activities. The development of vacuum tube radio transmitters made audio transmissions practical, in contrast with the earlier transmitters which were limited to sending the dits-and-dahs of Morse code . Since at least 1916, when he was still at American Marconi, David Sarnoff had proposed establishing broadcasting stations, but his memos to management promoting

5264-418: The end of that same year, David Sarnoff, after being incapacitated by a long-term illness, was removed as the company's chairman of the board. He died in December 1971. RCA's exit from the mainframe computer market in 1971 marked a milestone in its transition from electronics and technology toward Robert Sarnoff's goal to diversify RCA as a multinational business conglomerate . During the late 1960s and 1970s,

5358-699: The end of this century, these forces] will coalesce into what unquestionably will become the greatest adventure of the human mind." RCA marketed a Spectra 70 computer line that was hardware, but not software, compatible with IBM's System/360 series. It also produced the RCA Series, which competed against the IBM System/370 . This technology was leased to the English Electric company, which used it for their System 4 series, which were essentially RCA Spectra 70 clones. RCA's TSOS operating system

5452-466: The federal government and felt it deserved to maintain its predominant role in U.S. radio communications. At the company's recommendation, President Wilson appointed Rear Admiral Bullard "to attend the stockholders' and director's meetings... in order that he may present and discuss informally the Government's views and interests". The radio industry had been making technical advances, particularly in

5546-525: The first vacuum tube amplifier and oscillator , which De Forest called the "Oscillaton" after his earlier Audion . During World War One, the U.S. Navy purchased Federal Telegraph, but after the end of the war a displeased U.S. Congress ordered the Navy to return the company to its original owners. The company merged in August 1927 with the Mackay Companies . Originally a separate entity within

5640-403: The first of five RCA plants to produce Madame X vacuum tubes, which included a proximity fuse used to electronically detonate its payload when it was in range of its target, as opposed to relying on a direct hit. James V. Forrestal, former secretary of the Navy said, "The proximity fuse had helped blaze the trail to Japan. Without the protection this ingenious device has given the surface ships of

5734-424: The fleet, our westward push could not have been so swift and the cost in men and ships would have been immeasurably greater." Greatly miniaturized Nuvistor tubes were a last major vacuum tube innovation, along with General Electric's Compactron , and were meant to compete with the newly introduced transistor. By 1975, RCA had completely switched from tubes to solid-state devices in their television sets, except for

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5828-404: The iconic Nipper /" His Master's Voice " trademark. RCA Victor popularized combined radio receiver-phonographs, and also created RCA Photophone , a movie sound-on-film system that competed with William Fox 's sound-on-film Movietone and Warner Bros. ' sound-on-disc Vitaphone . Although early announcements of the RCA and Victor merger stressed that the two firms were linking equally to form

5922-744: The idea for sales of a "Radio Music Box" had not been followed up at the time. Around 1920, a small number of broadcasting stations began operating, and soon interest in the innovation was spreading nationwide. In the summer of 1921, a Madison Square Garden employee, Julius Hopp, devised a plan to raise charitable funds by broadcasting, from ringside, the July 2, 1921 Dempsey-Carpentier heavyweight championship fight to be held in Jersey City, New Jersey. Hopp recruited theaters and halls as listening locations that would charge admission fees to be used as charitable donations. He also contacted RCA's J. Andrew White,

6016-652: The industry, in 1941 the Federal Communications Commission (FCC) promulgated a rule designed to force NBC to divest one of them. This order was upheld by the U.S. Supreme Court, and on October 12, 1943, the NBC-Blue network was sold to candy magnate Edward J. Noble for $ 8,000,000, and renamed "The Blue Network, Inc." In 1946 the name was changed to the American Broadcasting Company (ABC). The "Red" network retained

6110-419: The international service, the company soon undertook a massive project to build a "Radio Central" communications hub at Rocky Point, Long Island , New York, designed to achieve "the realization of the vision of communication engineers to transmit messages to all points of the world from a single centrally located source". Construction began in July 1920, and the site was dedicated on November 5, 1921, after two of

6204-408: The mainframe computer field to challenge the market leader International Business Machines (IBM). Although at this time computers were almost universally used for routine data processing and scientific research, in 1964 Sarnoff, who prided himself as a visionary, predicted that "The computer will become the hub of a vast network of remote data stations and information banks feeding into the machine at

6298-519: The mainframe computer industry and other failed projects including the CED videodisc system. Although the company was rebounding by the mid-1980s, RCA never regained its former eminence and was reacquired by General Electric in 1986. This was during the Jack Welch era of GE and Welch began selling off or liquidating most of RCA's assets, retaining only NBC and government services. Today, RCA exists as

6392-671: The majority of its stock was in foreign hands, and the British already largely controlled the international undersea telegraph cables. This concern was increased by the announcement in late 1918 of the formation of the Pan-American Wireless Telegraph and Telephone Company, a joint venture between American Marconi and the Federal Telegraph Company , with plans to set up service between the United States and South America. The Navy had installed

6486-527: The manufacture of radio sets and components on Victor's Camden assembly lines, while decreasing the production of Victrolas and records. The entire phonograph record industry in America nearly foundered after the stock market crash of 1929 and subsequent Great Depression . During the nadir of the record business in the early 1930s, the manufacture of phonographs and records all but ceased; extant older phonographs were now obsolete and many had been relegated to

6580-534: The modernistic RCA Victor M Special, a polished aluminum portable record player designed by John Vassos that has become an icon of 1930s American industrial design. In 1949, RCA Victor released the first 45 rpm "single" records, as a response to Columbia Records successful introduction of its microgroove 33 1 ⁄ 3  rpm " LP " format in 1948. As RCA Victor adopted Columbia's 33 1 ⁄ 3  rpm LP records in 1950, Columbia then adopted RCA Victor's 45 rpm records. RCA also made investments in

6674-586: The movie industry, but they performed poorly. In April 1928, RCA Photophone, Inc., was organized by a group of companies including RCA to develop sound-movie technology. In the fall of 1927, RCA had purchased stock in Film Booking Office (FBO), and on October 25, 1928, with the help of Joseph P. Kennedy , the Radio-Keith-Orpheum Corporation (RKO) studio was formed by merging FBO with Keith-Albee-Orpheum Corporation (KAO),

6768-518: The new Empire State Building transmitter on top of the structure. Around this time, RCA began selling its first television set models, including the TRK-5 and TRK-9, in various New York stores. However, the FCC had not approved the start of commercial television operations, because technical standards had not yet been finalized. Concerned that RCA's broadcasts were an attempt to flood the market with sets that would force it to adopt RCA's current technology,

6862-464: The new industry's most important participant. From the beginning, AT&T's policy was to finance stations by commercial sponsorship of the programs. The company also created the first radio network, centered on its New York City station WEAF (now WFAN ), using its long-distance telephone lines to interconnect stations. This allowed them to economize by having multiple stations carry the same program. RCA and its partners soon faced an economic crisis, as

6956-422: The performers, while Sarnoff professed his indifference to the defections, stating at an annual meeting that "Leadership built over the years on a foundation of solid service cannot be snatched overnight by buying a few high-priced comedians. Leadership is not a laughing matter." RCA acted as the sales agent for a small line of Westinghouse and GE branded receivers and parts used by home constructors, originally for

7050-406: The pool can still create cost and risk for the industry. While it is rare for a patent pool to indemnify licensees, a pool does help to assure a common interest will emerge should one member be accused of infringement by a third party. Flaws in the design of the pool's governance can create the risk that one member can break the common cause of the group. Examples of well-known such cases include

7144-496: The proposed twelve antenna spokes had been completed, and two of the 200-kilowatt alternators installed. The debut transmissions received replies from stations in 17 countries. Although the initial installation would remain in operation, the additional antenna spokes and alternator installations would not be completed, due to a major discovery about radio signal propagation. While investigating transmitter "harmonics" – unwanted additional radio signals produced at higher frequencies than

7238-525: The remainder of its existence, through its subsidiary RCA Communications, Inc., and later the RCA Global Communications Company. In 1975, the company formed RCA American Communications , which operated its Satcom series of geostationary communications satellites . International shortwave links were in turn largely supplanted by communications satellites, especially for distributing network radio and television programming. At

7332-664: The right to begin commercial operations. NBC formed two radio networks that eventually expanded nationwide: the NBC-Red Network , with flagship station WEAF, and NBC-Blue , centered on WJZ. Although NBC was originally promoted as expecting to just break even economically, it soon became extremely profitable, which would be an important factor in helping RCA survive the economic pressures of the Great Depression that began in late 1929. Concerned that NBC's control of two national radio networks gave it too much power over

7426-434: The tax rate for annual incomes above $ 70,000 was 77%, while capital gains were taxed at 25%. Paley worked out an accounting technique whereby individual performers could set up corporations that allowed their earnings to be taxed at the significantly lower rate. Instead of NBC responding with a similar package, Sarnoff decided that this accounting method was legally and ethically wrong. NBC's performers did not agree, and most of

7520-508: The time RCA was founded in 1919, all radio and telegraphic communication between China and the US, including official messages, were sent through either German radio or British cable links. The U.S. Navy lobbied RCA to seek a concession for a radio link to China, however the company was reluctant because its other concessions were already operating at a loss. This link began operation in 1928. The Mackay Radio and Telegraph Company of California signed

7614-428: The top stars, including Amos and Andy , Jack Benny , Red Skelton , Edgar Bergen , Burns and Allen , Ed Wynn , Fred Waring , Al Jolson , Groucho Marx and Frank Sinatra moved from NBC to CBS. As a result, CBS boasted of having sixteen of the twenty top-rated programs in 1949. The consequences would carry over to television, where CBS maintained its newfound dominance for decades. Paley had personally worked to woo

7708-477: The upper dozen or so top-rated programs" and "The popular programs, to put the matter bluntly, have very little appeal for him." RCA professional video cameras and studio gear, particularly of the TK-40/41 series, became standard equipment at many American television network affiliates, as RCA CT-100 ("RCA Merrill" to dealers) television sets introduced color television to the public. In 1941, shortly before

7802-518: The war, RCA set up several new divisions for defense, space exploration and other activities. The RCA Service Corporation provided large numbers of staff for the Distant Early Warning (DEW) Line . RCA units won five Army–Navy "E" Awards for Excellence in production. Due to the hostilities between Japan and the United States during World War II , the Victor Company of Japan became an independent company after seceding from RCA Victor in

7896-469: The war. Contrary to instructions it had received, the Navy began purchasing large numbers of radio stations. When the war ended, Congress rejected the Navy's efforts to have peacetime control of the radio industry and instructed that the Navy return the stations it had taken control of to the original owners. Due to national security considerations, the Navy was particularly concerned about returning high-powered international stations to American Marconi, since

7990-701: Was a United States manufacturing and communications company that played a pivotal role in the 20th century in the development of radio communications. The company was founded in Palo Alto, California in 1909 by Cyril Frank Elwell , and was first known as the Poulsen Wireless Company, after licensing Valdemar Poulsen 's arc transmitter for use in the United States. The company initially developed high-powered transmitters used for long distance radiotelegraph communication. In 1911–13, Lee De Forest and two assistants worked at Federal Telegraph on

8084-402: Was adopted as the standard for the United States. At that time, Sarnoff predicted annual color television sales would reach 1.78 million in 1956, but the receivers were expensive and difficult to adjust, and there was initially a lack of color programming, so sales lagged badly and the actual 1956 total would only be 120,000. RCA's ownership of NBC proved to be a major benefit, as that network

8178-406: Was also a pioneer in the introduction and development of television, both black and white and especially color television . Throughout most of the company's existence, RCA was closely identified with the leadership of David Sarnoff . He became general manager at the company's founding, served as president from 1930 to 1965, and remained active as chairman of the board until the end of 1969. During

8272-682: Was an early supplier of electronics designed for the printing and publishing industries. It contracted with German company Rudolf Hell to market adaptations of the Digiset photocomposition system as the Videocomp, and a Laser Color Scanner. The Videocomp was supported by a Spectra computer that ran the Page-1 and, later the Page-II and FileComp composition systems. RCA later sold the Videocomp rights to Information International Inc. RCA Victor became

8366-497: Was instructed to promote its color program offerings; even so, it was not until 1968 that color television sales in the United States surpassed those of black-and-white sets. While lauding the technical prowess of his RCA engineers who had developed color television, David Sarnoff, in marked contrast to William Paley, president of CBS, did not disguise his dislike for popular television programs. His authorized biography even boasted that "no one has yet caught him in communion with one of

8460-842: Was made with the American Telephone & Telegraph Company (AT&T), which purchased 500,000 shares of RCA, although it would divest these shares in early 1923. The United Fruit Company held a small portfolio of radio patents and signed two agreements in 1921. GE's traditional electric company rival, the Westinghouse Electric & Manufacturing Corporation , had also purchased rights to some critical patents, including one for heterodyne receiving originally issued to Reginald Fessenden , plus regenerative circuit and superheterodyne receiver patents issued to Edwin Armstrong . Westinghouse used this position to negotiate

8554-516: Was now restricted to the labels and album covers of RCA's regular popular record releases, while the Nipper/"His Master's Voice" trademark was seen only on the album covers of Red Seal records. In 1969, the company name was officially changed from Radio Corporation of America to the RCA Corporation , to reflect its broader range of corporate activities and expansion into other countries. At

8648-456: Was responsible for creating a series of innovative products, ranging from octal base metal tubes co-developed with General Electric before World War II, to miniaturized Nuvistor tubes used in the tuners of the New Vista series of television receivers. The company began work on a secret project for the U.S. Navy called Madame X in September 1942. The Bloomington, Indiana, plant was one of

8742-489: Was the dominant electronics and communications firm in the United States for over five decades. In the early 1920s, RCA was at the forefront of the mushrooming radio industry as a major manufacturer of radio receivers , and the exclusive manufacturer of the first superheterodyne sets. The company also created the first nationwide American radio network, the National Broadcasting Company (NBC). RCA

8836-506: Was the first mainframe, demand paging, virtual memory operating system on the market. By 1971, despite a significant investment, RCA had only a 4% market share, and it was estimated that it would cost around $ 500 million over the next five years to remain competitive with the IBM/370 series. On September 17, 1971, the RCA board of directors announced its decision to close its computer systems division (RCA-CSD), which would be written off as

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