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Michael Stamm - Sound Business: Newspapers, Radio, and the Politics of New Media

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American newspapers have faced competition from new media for over ninety years. Today digital media challenge the printed word. In the 1920s, broadcast radio was the threatening upstart. At the time, newspaper publishers of all sizes turned threat into opportunity by establishing their own stations. Many, such as the Chicago Tribunes WGN, are still in operation. By 1940 newspapers owned 30 percent of Americas radio stations. This new type of enterprise, the multimedia corporation, troubled those who feared its power to control the flow of news and information. In Sound Business, historian Michael Stamm traces how these corporations and their critics reshaped the ways Americans received the news.
Stamm is attuned to a neglected aspect of U.S. media history: the role newspaper owners played in communications from the dawn of radio to the rise of television. Drawing on a wide array of primary sources, he recounts the controversies surrounding joint newspaper and radio operations. These companies capitalized on synergies between print and broadcast production. As their advertising revenue grew, so did concern over their concentrated influence. Federal policymakers, especially during the New Deal, responded to widespread concerns about the consequences of media consolidation by seeking to limit and even ban cross ownership. The debates between corporations, policymakers, and critics over how to regulate these new kinds of media businesses ultimately structured the channels of information distribution in the United States and determined who would control the institutions undergirding American society and politics.
Sound Business is a timely examination of the connections between media ownership, content, and distribution, one that both expands our understanding of mid-twentieth-century America and offers lessons for the digital age.

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Sound BusinessAMERICAN BUSINESS POLITICS AND SOCIETY Series Editors Richard - photo 1
Sound Business
AMERICAN BUSINESS, POLITICS, AND SOCIETY
Series Editors: Richard R. John, Pamela Walker Laird, and Mark H. Rose
Books in the series American Business, Politics, and Society explore the relationships over time between governmental institutions and the creation and performance of markets, firms, and industries large and small. The central theme of this series is that public policy--understood broadly to embrace not only lawmaking but also the structuring presence of governmental institutions--has been fundamental to the evolution of American business from the colonial era to the present. The series aims to explore, in particular, developments that have enduring consequences.
A complete list of books in the series is available from the publisher.
Sound Business
Newspapers, Radio, and the Politics of New Media
Michael Stamm
Picture 2
UNIVERSITY OF PENNSYLVANIA PRESS
PHILADELPHIA
Copyright 2011 University of Pennsylvania Press
All rights reserved. Except for brief quotations used for purposes of review or scholarly citation, none of this book may be reproduced in any form by any means without written permission from the publisher.
Published by
University of Pennsylvania Press
Philadelphia, Pennsylvania 19104-4112
www.upenn.edu/pennpress
Printed in the United States of America
on acid-free paper
10 9 8 7 6 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Stamm, Michael.
Sound business : newspapers, radio, and the politics of new media / Michael Stamm.
p. cm. (American business, politics, and society)
ISBN 9780812243116 (hardcover : alk. paper)
Includes bibliographical references and index.
1. Radio broadcastingOwnershipUnited StatesHistory20th century. 2. Radio broadcastingPolitical aspectsUnited StatesHistory20th century. 3. Newspaper publishingUnited StatesHistory20th century. 4. Newspaper publishingPolitical aspectsUnited StatesHistory20th century. I. Title. II. Series
HE8698.S755 2011
384.54/3097309041dc22
(PU) 4853015 2010047579
For my mother,
and for the memory of my father
Contents
Introduction
Underwriting the Ether: Newspapers and the Origins of American Broadcasting
Thomas E. Clark was a Detroit inventor who owned an electrical service and supply company. Clark met the teenage William E. Scripps after Scripps and his friends began, as Clark recalled, buying equipment from his shop to build a telegraph circuit connecting their homes. William often visited Clarks shop, and the two became quite well acquainted. In addition to his shop, Clark rented space in Detroits Banner Laundry Building, where he had set up experimental wireless communication equipment. He also arranged to use a small space nearby on the top floor of the Chamber of Commerce building, and by 1900 was successfully transmitting wireless messages between the two buildings. Clark offered to show William how he sent Morse code without wires, and soon after gave William and his father James a demonstration that left the pair quite enthused and pleased.
With Tom Clarks help, William E. Scripps had a small studio built in the Detroit News building and the station began experimental transmissions on 20 August 1920. Satisfied that everything was in working order, the News announced on 31 August that the results of the days state primary elections would be aired in the evening, and the broadcast was successful. On 1 September, the Detroit News described its four-hour block of election coverage as a miraculous event fraught with romance. As the station was hissing and whirring its message into space, the News claimed, few realized that a dream and a prediction had come true. The news of the world was being given forth through this invisible trumpet to the unseen crowds in the unseen marketplace. Newspapers, the dominant providers of Americans daily information, now had a new medium with which to address the public, if they chose to pursue the opportunity.
This book focuses on the relationship between newspapers and radio the old media and the newduring the period stretching from the origins of radio broadcasting through the early years of commercial television, roughly 1920 to 1953. In so doing, it makes two related arguments. First, it argues that newspapers used radio broadcasting to create a new kind of media corporation that utilized multiple media to circulate information and generate profits. And second, it argues that these multimedia corporations were central to the legal and political processes structuring the American public sphere in the twentieth century. These corporations participated in virtually every significant media policy debate, and they were strongly influential on the outcomes. Ultimately, these were the corporations that made the business of information a multimedia endeavor, and their actions transformed the ways that Americans received ideas about culture, society, and politics in the twentieth century.
In the late 1930s and early 1940s, sociologist Paul Lazarsfeld conducted extensive empirical research on the relationship between radio and reading and found that the greatest single change which radio has helped to bring about is the greatly-increased interest in news all over the country. Radio, Lazarsfeld argued in 1941, stimulated people to read newspapers. For a number of psychological reasons, persons who hear a news item are often inclined to want to read it just because radio has brought it to their attention. Lazarsfeld concluded that radio listening in the interwar period had become a widespread supplementary practice to newspaper reading, but he also argued that print remained foundational. There are many ways to communicate serious ideas, Lazarsfeld argued, and even after Americans had become active radio listeners, reading still occup[ied] a place of peculiar primacy and virtue in the world of ideas. Print is the lever, we have come to feel, that can move the world. Whatever other media of communication we may use, we tend to fall back upon reading as the inescapably necessary supplement. After almost two decades of living with radio, Americans showed no signs of abandoning their relationship with print. But it is to suggest that the experience of listening to radio was impossible to bracket completely from the experience of reading printed texts, and to argue that the growth of radio (and later television) broadcasting took place within the context of a vibrant reading culture. All the while, strategic corporations profited from activities in all media.
Manufacturing companies like the Radio Corporation of America (RCA), Westinghouse, and Zenith foresaw great profits in the sale of radio sets and began broadcasting in order to give listeners appealing content that would induce them to purchase receivers. Newspapers broadcasting was motivated by a combination of these impulses. On the one hand, newspapers looked at radio as universities did and saw it as a new technology that could expand the institutions public presence and geographic reach. Newspapers also saw in broadcasting some of the things that department stores did, believing that it could promote the paper and attract more customers. And, in the long term, newspapers believed that radio was a means to greater profits for their businesses.
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