Radio Regulation: A Case Study in Basic Policy Conflicts
| Published date | 01 May 1942 |
| DOI | 10.1177/000271624222100118 |
| Date | 01 May 1942 |
| Subject Matter | Articles |
122
Radio
Regulation:
A
Case
Study
in
Basic
Policy
Conflicts
By
HERMAN
S.
HETTINGER
and
WILLIAM
A.
PORTER
T HE
approach
to
the
problem
of
basic
policy
conflicts
in
broadcast-
ing
regulation
requires
an
examination
not
only
of
the
fundamental
economic
and
social
aspects
of
radio
broadcasting,
but
also
of
certain
phases
of
its
techni-
cal
development.
Moreover,
it
is
neces-
sary
to
bear
in
mind
that
neither
the
broadcasting
industry
nor
the
Federal
Communications
Commission
is
the
final
arbiter
of
radio
service,
and
that
this
power
lies
with
the
public
for
whose
benefit
and
enjoyment
radio
programs
are
broadcast.
It
is
therefore
essential
that
two
features
be
clearly
understood
from
the
outset:
the
fundamental
mean-
ing
of
program
service
in
the
&dquo;public
interest,&dquo;
and
the
principles
upon
which
the
operation
of
American
broadcasting
is
based.
Generically,
broadcasting
in
the
pub-
lic
interest
implies
the
following:
(1)
the
existence
of
adequate
signal
service
to
make
possible
satisfactory
listening
to
programs
on
the
part
of
all
segments
of
the
set-owning
public;
(2)
a
suffi-
cient
diversity
and
quality
of
program
service
to
satisfy
listeners’
desires
for
entertainment
and
information;
and
(3)
the
maintenance
of
radio
as
a
free
me-
dium
for
the
dissemination
of
news
and
the
discussion
of
public
questions.
The
first
of
these
aspects
of
broad-
casting
in
the
public
interest
relates
to
the
technical
facilities
available
for
that
purpose.
New
improvements
and
refinements
in
standard
broadcasting
service
and
new
developments
such
as
frequency
modulation,
television,
and
facsimile
have
the
potentiality
of
in-
creasing
radio’s
efficacy
far
beyond
the
reach
of
the
most
daring
imagination.
Technological
development
in
radio
has
always
proceeded
at
a
rapid
pace,
and
promises
to
continue
to
do
so.
Conse-
quently
it
is
essential
that the
greatest
freedom
be
given
to
business
enterprise
and
economic
organization
so
that
it
may
adapt
new
inventions
and
new
serv-
ices
to
improved
public
service
in
the
best
manner
possible.
ECONOMIC
ORGANIZATION
Providing
program
service
and
main-
taining
radio
as
a
free
medium
for
the
dissemination
of
news
and
the
discus-
sion
of
public questions
are
matters
which
deal
primarily
with
questions
of
economic
organization.
Almost
from
the
very
beginning,
American
broad-
casting
has
been
organized
on
the
assumption
of
a
privately
owned
and
competitively
operated
system
wherein
government
intervenes
merely
to
con-
serve
the
public
interest.
The
reason
for
selecting
this
system
of
broadcasting
was
stated
by
Secretary
Hoover
at
the
Fourth
Annual
National
Radio
Con-
ference
in
1925:
The
decision
that
we
should
not
imitate
some
of
our
foreign
colleagues
with
govern-
mentally
controlled
broadcasting
supported
by
a
tax
upon
listeners
has
secured
for
us
a
greater
variety
of
programs
and
excel-
lence
in
service
free
of
cost to
the
listener.
This
decision
has
avoided
the
pitfalls
of
political,
religious
and
social
conflicts
in
the
use
of
speech
over
the
radio
which
no
Government
could
solve-it
has
preserved
free
speech
to
this
medium.
The
resulting
system
of
broadcasting
has
created
a
public
interest
and
enthu-
siasm
in
radio
which
is
unparalleled.
Its
programs
have
been
responsible
for
increasing
the
number
of
radio
sets
in
use
from
400,000
in
1922
to
57,000,000
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123
in
1942.
Today
there
are
over
28,000,-
000
radio
families
in
this
country,
and
more
than
80
per
cent
of
these
use
their
sets
daily
for
an
approximate
average
of
five
hours.
Under
the
American
system,
receipts
from
the
sale
of
time
to
advertisers
pro-
vide
the
economic
support
for
program
service.
In
1941,
broadcast
advertising
time
sales
amounted
to
more
than
$167,-
000,000
as
compared
to
$5,000,000
in
1927.
Of
this
sum,
approximately
$50,-
000,000
was
spent
by
stations
and
net-
works
for
programs.
In
addition,
direct
expenditures
by
advertisers
for
pro-
grams
amounted
to
about
$45,000,000.
The
nature
of
privately
owned
and
competitively
operated
broadcasting
makes
it
essential
that
a
most
careful
balance
be
preserved
between
public
and
economic
considerations.
Any
un-
due
impairment
of
the
economic
sta-
bility
of
radio
is
certain
to
affect
the
public
interest
adversely.
If
the
adver-
tising
value
of
the
medium
is
seriously
curtailed,
the
adverse
effect
is
bound
to
be
cumulative.
Less
receipts
from
advertising
will
mean
less
money
avail-
able
for
noncommercial
sustaining
pro-
grams.
Moreover,
reduced
program
budgets
would
have
to
be
spread
over
a
larger
number
of
sustaining
programs;
for
stations,
unlike
newspapers,
cannot
reduce
the
number
of
hours
they
broad-
cast
as
advertiser-sponsored
programs
decrease.
The
withdrawal
of
any
sub-
stantial
number
of
highly
popular
ad-
vertising
programs
also
would
be
certain
of
itself
to
decrease
set
use
and
would
consequently
further
reduce
the
value
of
radio
as
an
advertising
medium.
Thus
there
would
be
initiated
a
vicious
downward
spiral,
the
adverse
results
of
which
would
be
felt
in
all
forms
of
pro-
gram
service.
Moreover,
it
has
been
necessary
for
broadcasting
to
develop
an
economic
as
well
as
a
technical
structure
for
the
pro-
duction
and
dissemination
of
programs.
This
structure
is
composed
of
various
types
of
specialized
agencies-different
classes
of
stations,
networks,
transcrip-
tion
companies,
advertising
agencies,
and
the
like-to
perform
the
functions
involved.
The
orderly
operation
of
this
structure
is
as
important
to
the
public
efficacy
of
radio
as
is
adequate
financial
support.
Indeed,
the
two
are
insepa-
rable
concomitants.
The
success
of
American
broadcasting
as
a
free
medium
for
the
dissemination
of
news
and
the
discussion
of
public
questions,
in
contrast
to
what
can
be
achieved
under
government-controlled
broadcasting
abroad,
is
so
clearly
evi-
dent
today
that
rlo
discussion
of
this
point
is
necessary.
THE
RISE
OF
THE
AMERICAN
BROAD-
CASTING
STRUCTURE
The
development
of
the
American
broadcasting
structure
has
been
achieved
primarily
through
the
exercise
of
indi-
vidual
business
initiative
and
competi-
tive
action;
and
until
recently
the
role
of
government
has
been
a
semi-passive
one,
which
has
been
confined
primarily
to
the
allocation
of
technical
facilities.
The
advent
of
broadcasting
in
1920
attracted
a
variety
of
business
entre-
preneurs,
the
great
majority
of
whom
sought
to
benefit
but
indirectly
from
the
new
miracle
of
radio.
Radio
set
manu-
facturers,
electrical
shops,
and
newly
established
radio
shops
engaged
in
broadcasting
for
the
purpose
of
stimu-
lating
the
sale
of
receiving
sets.
De-
partment
stores
and
other
retail
estab-
lishments
entered
the
field
with
the
hope
of
creating
consumer
good
will;
as
did
music
shops,
banks,
insurance
compa-
nies,
theaters,
garages,
and
a
variety
of
other forms
of
business
enterprise.
However,
the
&dquo;blue
sky&dquo;
period
of
radio
was
short-lived.
Rising
technical
costs,
due
to
the
need
for
greater
power
and
improved
facilities,
materially
in-
creased
program
expense
by
reason
of
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