Encyclopedia
RCA, formerly an initialism for the
Radio Corporation of America, is now a
trademark used by two companies for products descended from that common ancestor:
...
s,
DVD players,
video cassette recorders, direct broadcast satellite decoders,
camcorders, audio equipment,
telephones, and related accessories; and
...
record labels it received from one of its owners,
BMG.
The two companies bought those assets from
General Electric, which took over the RCA conglomerate in 1986 and kept RCA's NBC broadcasting interests. Initially, GE continued to control the RCA trademarks , which were then licensed to Thomson and Bertelsmann. Thomson eventually bought the RCA trademarks, subject to the perpetual license GE had issued to Sony BMG's predecessor.
Although Bertelsmann AG was new to the RCA family , Thomson started as the French subsidiary of a company which later evolved into General Electric.
Due to their popularity during the
golden age of radio, their manufacturing quality, their engineering innovations, their styling and their name, RCA
antique radios are one of the more sought-after brands of collectible radios.
Prior to RCA
During
World War I the patents of the major companies involved with
radio in the
United States of America were merged to facilitate the war effort. All production of radio equipment was for the
military. The seizure of the assets of British-owned American
Marconi by the
United States Navy and the cooperation between
General Electric,
United Fruit and
Westinghouse Electric Corporation laid the groundwork for the Radio Corporation of America, RCA.
After the war, many saw radio as a natural monopoly. The
United States Navy tried, but failed, to gain the monopoly for the Navy.
Owen Young convinced the
U.S. Congress to entrust in his company, General Electric , together with
American Telephone and Telegraph , a monopoly of international radio.
History of RCA
RCA was formed in 1919 as a publicly-held company owned in part by
AT&T and
GE. From their later actions the intent was likely to form a holding company that would use various legal means to attempt to monopolize the radio business.
David Sarnoff was named General Manager. RCA's charter required it be mostly American-owned. RCA took over the assets of American Marconi, and was responsible for marketing GE and Westinghouse's radio equipment. It also acquired the patents of United Fruit and Westinghouse, in exchange for ownership stakes. Later on the company went on a patenting and licensing binge, patenting the
superheterodyne concept. Some of their early radios had their guts hidden in "catacombs" to prevent reverse-engineering.
By 1926, RCA had grasped the market for commercial radio, and purchased the WEAF and WCAP radio stations and network from AT&T, merged them with RCA's own attempt at networking, the WJZ New York/WRC Washington chain, and formed the National Broadcasting Company .
In 1929, RCA purchased the
Victor Talking Machine Company, then the world's largest manufacturer of
phonographs and
phonograph records . The company then became
RCA-Victor. With Victor, RCA acquired
New World rights to the famous
Nipper trademark. RCA Victor produced many radio-phonographs. The company also created RCA Photophone, a
sound-on-film system for sound films that competed with William Fox's sound-on-film Movietone and
Warner Brothers sound-on-disc Vitaphone.
In 1931, RCA Victor developed and released the first 33? rpm records to the public. These had the standard groove size identical to the contemporary 78rpm records, rather than the "microgroove" used in post-WWII 33? "Long Play" records. The format was a commercial failure at the height of the
Great Depression, partially because the records and playback equipment were expensive. The system was withdrawn from the market after about a year.
In 1939, RCA demonstrated an all-electronic
television system at the
New York World's Fair. With the introduction of the
NTSC standard, the
Federal Communications Commission authorized the start of commercial television transmission on July 1, 1941.
World War II slowed the deployment of television in the US, but RCA began selling television sets almost immediately after the war was over.
RCA was one of the leading makers of
Vacuum Tubes in the USA, creating a series of innovative products ranging from
octal base. Their power in the marketplace was so strong, they effectively set the selling prices for vacuum tubes in the USA. A look at their competitor's price lists shows them to be identical to RCA's, from 1940 through 1970 at least. Metal tubes co-developed with
General Electric before
WWII to the transistor-sized
Nuvistor used in the tuners of the New Vista series of television sets. In spite of this, the company completely switched over to making solid-state television sets by 1975.
Antitrust concerns led to the breakup of the NBC radio networks by the FCC, a breakup affirmed by the
United States Supreme Court. On October 12, 1943, the "NBC Blue" radio network was sold to
Life Savers candy magnate Edward J. Noble for $8,000,000, and renamed "The Blue Network, Inc". It would become the
American Broadcasting Company in 1946. The "NBC Red" network retained the NBC name, and RCA retained ownership.
In 1949, RCA-Victor developed and released the first 45 rpm record to the public, answering
CBS/Columbia's 33? rpm "
LP".
In 1953, RCA's color-TV standard was adopted as the standard for American color TV; it is now known as
NTSC . RCA
cameras and studio gear, particularly of the TK-40/41 series, became standard equipment at many American television network affiliates, as RCA CT-100 television sets introduced color television to the public.
Due to their rarity and technological significance, RCA Merrill/CT-100 are highly sought-after collectibles. Attic "relics", especially with an RCA emblem, should be assessed by several knowledgeable and trustworthy antique radio or television collectors prior to acquisition.
Despite the company's indisputable leadership in television technology, David Sarnoff in 1955 commented, "Television will never be a medium of entertainment".
RCA was one of the eight major
computer companies through most of the
1960s, but abandoned computers in 1971.
RCA was a major proponent of the
eight-track tape cartridge, which it launched in 1965. The eight-track cartridge initially had a huge and profitable impact on the consumer marketplace. However, sales of the 8-track tape format peaked in 1974-75 as consumers increasingly favored the compact cassette format developed by competitor
Philips.
RCA's decline
In many ways the story of RCA is the story of David Sarnoff. His drive and business acumen led to RCA becoming one of the largest companies in the world, successfully turning it into a conglomerate during the era of their success. However in 1970, now 79 years old, Sarnoff retired and was succeeded by his son Robert. David Sarnoff died the next year; much of RCA's success died with him.
During the
1970s,
RCA Corporation, as it was now formally known, became increasingly ossified as a company. Under Robert Sarnoff's leadership, RCA diversified far beyond its original focus on electronics and communications. The company acquired
Hertz , Banquet , Coronet ,
Random House and Gibson . Despite this diversification, or perhaps because of it, the corporation was plagued by financial problems. Robert Sarnoff was ousted in a 1975 boardroom coup by Anthony Conrad, who resigned a year later after admitting failing to file income tax returns for six years. Despite maintaining a high standard of engineering excellence in such fields as broadcast engineering and
satellite communications equipment, ventures such as the NBC radio and television networks declined. Forays into new consumer electronics products, such as the innovative but technologically obsolescent
SelectaVision videodisc system, proved money losers.
This eventually led to RCA's sale to GE in 1986 and its subsequent break-up. GE sold its 50% interest in what was then RCA/Ariola International Records to its partner
Bertelsmann and the company was renamed
BMG Music for Bertelsmann Music Group. GE sold the rights to make RCA and GE brand consumer electronics products, notably television sets, to the French Thomson Group, in exchange for some of Thomson's medical businesses. RCA Laboratories was transferred to
SRI International and renamed Sarnoff Corporation.
Notes
In old movies that portrayed the
Wall Street Crash of 1929, sometimes brokers are heard buying or selling shares of
radio which means RCA.
Trivia
The old RCA Victor building in Camden, New Jersey was recently developed into a high-rise luxury apartment building.
For many years, RCA was the sponsor of
Disney's
Space Mountain ride, showcasing technology. Now the ride is sponsored by
FedEx.
The Indianapolis Colts professional football team's stadium is sponsored by RCA, and is simply known as the
RCA Dome. The RCA Dome is currently being replaced by the new
Lucas Oil Stadium.
See also
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References
- Robert N. Sobel wrote a book about the company, called simply RCA, in 1986.
External links
