What Has Happened to RCA?
- General Electric Corporation and Westinghouse founded RCA on October 17, 1919 as part of a project with the United States government to monopolize long-distance radio communications. At the time, engineers thought that the number of usable radio frequencies was very small, and so the first country to monopolize them would control the airwaves. The development of shortwave radio allowed for broadcast over much longer distances and on many more frequencies than early radio sets, removing the need to dominate what would become the AM band. GE divested itself of ownership in RCA in 1930 in response to an antitrust lawsuit.
- Instead of becoming a government-controlled international communications company, RCA became a major player in commercial radio in the United States, quickly branching out into new technologies. Their absorption of the Victor Talking Machine Company led to the development of the company’s trademark symbol, a dog listening quizzically to a phonograph. RCA’s broadcast radio unit became the National Broadcasting Company, one of the first national radio networks and later one of the “big three” broadcast television companies. In addition, the National Television Systems Committee adopted RCA’s broadcast technology in 1953, making it the uniform standard for television in America.
- In the 1960s, RCA attempted to enter the computing market, only to abandon the division in 1971. Another one of its projects, the eight-track tape player, proved to be highly successful when first released, but quickly fell out of favor when more versatile compact cassette systems reached the market. The company attempted to diversify into a number of different fields, including publishing, frozen foods, rental cars and even carpet manufacturing, leading to financial instability and a loss of the company’s focus.
- In 1986, General Electric returned to the picture, taking over RCA and breaking up the company. GE spun off most of the departments of the conglomerate, keeping only the NBC network for itself. It sold the company’s trademarks to Thomson Consumer Electronics, which eventually passed them to the Audiovox Corporation. As of 2011, Audiovox continues to produce televisions, radios, and other consumer electronics under the RCA brand.
Origins
Growth
Missteps
Breakup
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