British Broadcasting Company
Company type | Private company limited by shares |
---|---|
Founded | 18 October 1922 |
Defunct | 1 January 1927 (4 years, 2 months and 14 days) |
Fate | Liquidationsale, re-established in 1927 as the non-commercial and crown-charteredBritish Broadcasting Corporation |
Successor | BBC |
Headquarters |
TheBritish Broadcasting Company Limited(BBC) was a short-lived British commercial broadcasting company formed on 18 October 1922 by British and American electrical companies doing business in the United Kingdom. Licensed by the BritishGeneral Post Office,its original office was located on the second floor of Magnet House, theGECbuildings in London and consisted of a room and a small antechamber.
On 14 December 1922,John Reithwas hired to become the managing director of the company at that address. The company later moved its offices to the premises of theMarconi Company.The BBC as a commercial broadcasting company did not sell air time but it did carry a number of sponsored programmes paid for by British newspapers. On 31 December 1926, the company was dissolved and its assets were transferred to the non-commercial and crown-charteredBritish Broadcasting Corporation(BBC).
Brief history
[edit]Post Office stations
[edit]In Britain prior to 1922, theGeneral Post Office(GPO) retained exclusive rights given to it by the government to manage and control all means of mass communication with the exception of the printed word. The laws which evolved into the Wireless Telegraphy Act of 1947, upon which all modern British communication laws are established, concern:
- the establishment of astationfor purposes of broadcasting,
- the use of a station for purposes of broadcasting,
- the installing of a transmitter or receiver, and the use of a transmitter or receiver.
All these activities require a government licence which was originally granted by the General Post Office.
"Electrical" post offices
[edit]The invention of the electricaltelegraphcame under the control of the Telegraph Act of 1869 which was based upon a law that forbade the encoding of electrical cables with messages without a licence. The messages were viewed as electrical forms of a letter. This invention was followed by thewireless telegraphywhich was then placed under theWireless Telegraphy Act 1904.
Advent of wireless broadcasting
[edit]In the US, the development of the telegraph, wireless telegraph, telephone and wireless telephony proceeded according to the dictates of entrepreneurial commercial interests concerned only with supply and demand for profit. Beginning in August 1920, commercial broadcasting stations programming to the general public had begun broadcasting in the United States, licensed by theDepartment of Commerce(these duties were transferred in 1934 to theFederal Communications Commission) and offering several hours of programming, usually at night. Two of the first stations wereWWJin Detroit (then known as 8MK)[1]andKDKAinPittsburgh(which has claimed to be the first station specifically licensed for commercial broadcasting; however commercial licences were actually not awarded until September 1921).[2]These pioneering stations continue in daily 24-hour operation today under the ownership and management ofCBS.
In the United Kingdom, all broadcasts were licensed by the GPO, who were reluctant to license any fully commercial stations and only 'experimental' stations were allowed on air.
First test broadcasts
[edit]Beginning in 1920, a number of licences were issued to British and American subsidiary companies in Britain for the purpose of conducting experimental transmissions under terms of a licence issued by the General Post Office in accordance with theWireless Telegraphy Act 1904.On 15 June 1920, Marconi'sWireless Telegraph Company, Limited,inChelmsford,Essex, was licensed to conduct an experimental broadcast from theNew Street Worksfactory, featuringDame Nellie Melba.The signal was received throughout Europe and as far as Newfoundland, Canada. Further transmissions were also made.
Military intervention
[edit]On 23 November 1920, the General Post Office halted all further transmissions due to complaints of alleged interference withmilitarycommunications. As the number of wireless receiving sets increased during the early 1920s, the General Post Office came under extreme pressure from hobby listeners to allow the experimental wireless broadcasts to resume.
Test transmissions resume
[edit]On 14 February 1922, which was two years after ceasing their original transmissions, the Marconi Company was issued a licence for experimental transmissions under the call sign2MT.Peter Eckersleywas given charge of providing both the broadcast entertainment and the engineering. The station operated out of a hut in a field atWrittlenear Chelmsford.
On 11 May 1922, the Marconi Company was issued another licence for experimental broadcasts from a station identified as2LOwhich was located atMarconi Houseinthe Strand,London. The programme consisted of a boxing commentary of the fight betweenKid LewisandGeorges Carpentier.Further tests were also advertised as demonstrations of "Wireless Telegraphy and Telephony"which were"subject to permission from thePostmaster General".These demonstrations were performed by the" Demonstration Department (of) Marconi's London Wireless Station 2LO ".
On 16 May 1922, the Metropolitan Vickers Company Ltd. ( "Metrovick" ) commenced test broadcasting from its own station inManchester,identified as2ZY.
A committee is appointed
[edit]On 23 May a committee of representatives was appointed from the "Big Six" companies – theMarconi Company,Metropolitan-Vickers,Radio Communication Company,British Thomson-Houston,General Electric CompanyandWestern Electric.The Post Office also pressed for the inclusion of a representative from the smaller firms manufacturing radio equipment in the UK – Frank Phillips of Burndept. George Campbell was one of the members on the committee.
Incorporation and shares
[edit]On 18 October 1922 the British Broadcasting Company Ltd. was incorporated under the Companies Acts 1908 to 1917 with a share capital of £60,006, with cumulative ordinary shares valued at £1 each.[3]No further capital could be issued without the Postmaster-General's consent:
The shares were equally held by six companies:
- Marconi Company
- Metropolitan-Vickers
- Radio Communication Company
- British Thomson-Houston
- General Electric Company
- Western Electric
The shareholders gave the BBC the benefit of their respective patents, and only radio sets supplied by BBC companies were permitted to be licensed to receive programmes. The ability of the shareholders to profit from the BBC was limited as part of the agreement with the Postmaster General:
The holders of the Cumulative Ordinary Shares are entitled to receive out of the profits of the Company a fixed Cumulative Dividend at the rate of 7½% per annum on the capital for the time being paid up thereon but are not entitled to any further or other participation in profits.
Directors
[edit]Name | Portfolio | Address |
---|---|---|
Jack Pease, 1st Baron Gainford | Chairman of British Broadcasting Company | Headlam Hall,Gainford,Durham |
Godfrey C. Isaacs | Managing director ofMarconi's Wireless Telegraph Company | Marconi House, Strand, WC2 |
Archibald McKinstry | Joint managing director ofMetropolitan Vickers Electrical Company | The Red Lodge, Southill Avenue,Harrow on the Hill |
Major Basil Binyon | Managing director of Radio Communication Company | "Hawtthorndene",Hayes,Kent |
John Gray | Chairman of theBritish Thomson-HoustonCompany | "Beaulieu", Park Farm Road,Bromley,Kent |
Sir William Noble | Director of The General Electric Company | Magnet House, Kingsway, London WC2 |
Henry Mark Pease | Managing director of Western Electric Company | 18 Kensington Court Mansions, London W8 |
The initial remit of the British Broadcasting Company was to establish a nationwide network of radio transmitters many of which had originally been owned by member companies, from which the BBC was to provide a national broadcasting service.
International influences
[edit]The British Broadcasting Company was formed using a blueprint that theUnited States Navyand theGeneral Electric Companyhad attempted to institute in the USA. Early inWorld War I,all of the ship-to-shore and transatlantic radio stations controlled by a US subsidiary company of Marconi's Wireless Telegraph Company, Limited in Chelmsford, England, were seized and handed to the US Navy for the duration of the War. After the War, theUS Congressforced the US Navy to divest itself of the stations and they turned to the General Electric Company which in 1919 formed a subsidiary called theRadio Corporation of America.With the US Navy on its board,RCAthen absorbed the former Marconi stations. In 1926 RCA created theNational Broadcasting Company,the first network in the United States. Peaking in the 1930s, there were unsuccessful attempts to bring all radio communications in America back under single monopoly control by using the patent laws.
TheWestern ElectricCompany Ltd. in the UK was originally formed as a subsidiary ofAmerican Telephone and Telegraph Company(AT&T) in the USA where it served as its manufacturing subsidiary to equip the AT&TBell Telephonesystem.
TheBritish Thomson-HoustonCompany Ltd. was a controlled UK subsidiary of the General Electric Company in the USA. TheHotpointElectric Appliance Company Ltd. was formed by British Thomson-Houston (BTH) in 1921.
The only other company later added to the original shareholders of the British Broadcasting Company Ltd. was Burndept Limited. It represented the interests of over twenty small electrical manufacturers in the UK.
Income
[edit]The British Broadcasting Company did not sell air time for commercials but its licence did allow for it to carry sponsored programming, and eight such sponsored broadcasts were aired in 1925.[4]However, the main source of its income was from the sale of radio receiving sets and transmitters manufactured by its shareholding member companies as well as from a portion of the government (GPO) licence fee that had to be purchased by BBC listeners.
Timeline
[edit]1922
[edit]- 14 February:2MTis the first British radio station to make regular entertainment broadcasts, operating from an ex-Army hut next to the Marconi Laboratories atWrittle,near Chelmsford in Essex.
- 11 May:2LObegins broadcasting for one hour a day from the seventh floor ofMarconi Housein London'sStrand,oppositeSomerset House.
- 18 October: The British Broadcasting Company Limited is formed but not registered.
- 1 November: The firstbroadcast receiving licencesare issued.
- 14 November: 2LO is transferred to the British Broadcasting Company and begins broadcasting onmedium wavefrom Marconi House to London. The first news bulletin is read byArthur Burrows,the company's founding Director of Programmes.
- 15 November:5ITinBirminghamand2ZYinManchesterbegin broadcasting. All three BBC stations broadcast the General Election results.
- 14 December: John C. W. Reith is hired as the company's managing director.
- 15 December: The British Broadcasting Company Limited is registered as an incorporated company.
- 24 December: 5NO begins broadcasting toNewcastle.
- 30 December: John Reith begins work as Managing Director.
- 31 December: 35,774 receiving licences have been issued by the General Post Office. The BBC has four employees.
1923
[edit]- 18 January:Postmaster GeneralNeville Chamberlainissues the British Broadcasting Company Ltd. with a broadcasting licence from the General Post Office.
- 13 February: 5WA begins broadcasting toCardiff.
- 6 March: 5SC begins broadcasting toGlasgow.
- 16 March: The first return of shareholders is filed. Substantiated claim.[5]
- 1 May: New studios are opened atSavoy Hill.
- 6 June:Edgar Wallacebecomes the first British radiosports reporterwhen he makes a report onThe Derby.
- 29 August: The first network news bulletin is delivered by all BBC stations.
- 28 September: First published edition ofThe Radio Times.[6]
- 1 October: Publication of Sykes Committee Report on Broadcasting.
- 10 October: 2BD begins broadcasting toAberdeen.
- 17 October:6BMbegins broadcasting toBournemouth.
- 16 November: 6FL begins broadcasting toSheffieldas the first relay station.
- 26 November: First experimental broadcast to North America.
- 30 December: First landline relay fromRadiola Paris,France.
- 31 December: First broadcast of theBig Benchimes. BBC staff numbers 177.
1924
[edit]- 5 February: First daily broadcast of theGreenwichtime signal.
- 17 February: First daily broadcast of theBig Bentime signal.
- 28 March 5PY begins broadcasting toPlymouthas a relay station.
- 1 May: 2EH begins broadcasting toEdinburghas a relay station.
- 11 June: 6LV begins broadcasting toLiverpoolas a relay station.
- 8 July: 2LS begins broadcasting toLeedsandBradfordas a relay station.
- 9 July: 5XX begins experimental broadcasts onlong wavefrom Chelmsford.
- 15 August: 6K began broadcasting toHullas a relay station.
- 15 September:2BEbegins broadcasting toBelfast.
- 16 September: 5NG begins broadcasting toNottinghamas a relay station.
- 21 October: 6ST begins broadcasting toStoke-on-Trentas a relay station.
- 12 November: 2DE begins broadcasting toDundeeas a relay station.
- 26 November: First transatlantic relay broadcast fromKDKA,Pittsburgh,Pennsylvania, USA.
- 12 December: 5SX begins broadcasting toSwanseaas a relay station.
- 31 December: Over 1 million receiving licences have been issued by the General Post Office. The BBC has 20 radio transmitting stations in operation and 465 employees.
1925
[edit]- Various dates: Eight sponsored concerts are broadcast by the BBC.[7]
- 3 April: BBC Deputy Managing Director Rear-AdmiralCharles Carpendalebecomes President of the First General Assembly of theInternational Broadcasting UnionatGeneva,Switzerland.
- 6 April: 2LO's transmitter power is increased with the move from Marconi House to the roof ofSelfridgesdepartment store inOxford Street.
- 17 July: First published edition ofThe Radio Supplement.
- 27 July: The 5XX experimental longwave station is moved from Chelmsford toDaventrywhere it commences regular broadcasting on 1600 metres.
- 31 December: BBC staff numbers reach 658.
1926
[edit]- 4 January: John Reith begins to impose hisdress codeon the BBC's radio announcers, who must wear dinner jackets in the evening, as a mark of respect towards performers obliged to dress formally.
- 16 January: Catholic priest and broadcaster FatherRonald KnoxbroadcastsBroadcasting from the Barricades,a satirical news report of a fictional riot. A significant part of the public believes the programme to be genuine, and Knox's satire provokes a minor panic similar to that caused byOrson Welles'sThe War of the Worldsbroadcast twelve years later.
- 5 March: The Crawford parliamentary committee publishes its broadcasting report, which calls for the takeover of the British Broadcasting Company Ltd. by a government-owned non-commercialBritish Broadcasting Commission.
- 18 June: The BBC'sRadio Supplementpublication is replaced by its new periodical,World Radio.
- 22 July: Final return of shareholders filed.[5]
- 14 November: The International Broadcasting Union publishes itsGeneva Plan,which reduces the number of BBC wavelengths. This forces the company to move towards a restructuring of its services which will see most of its local radio stations replaced by regional stations.
- 16 December: Over 100 staff and directors of the British Broadcasting Company Limited attend a dinner party given for Prime MinisterStanley Baldwin.
- 20 December: Publication of theroyal charterand licence agreements creating theBritish Broadcasting Corporation.
- 31 December: The General Post Offices has issued 2¼ million receiving licences. The contracts of 773 British Broadcasting Company staff are terminated and, with the dissolution of the company, shareholders are paid at par value. All assets, plant and copyrights held by the British Broadcasting Company are transferred to the Postmaster General.
1927
[edit]- 1 January: TheBritish Broadcasting Corporationis established, and all assets received by the Postmaster General from the British Broadcasting Company Limited are transferred. John Reith takes office as the first director general, and all staff previously employed by the company are engaged under new contracts to the corporation.
See also
[edit]- Radio Drama Company,a BBC company of actors established in 1939
Sources
[edit]References
[edit]- ^Robert S. Stephan, "Station WWJ inDetroitto Mark 25th Anniversary. "Cleveland Plain Dealer, 16 August 1945, p. 15.
- ^"November 2 Marks 8th Anniversary of Broadcasting." Cleveland Plain Dealer, 21 October 1928, p. 20
- ^Neville Chamberlain, Postmaster-General (5 December 1922)."British Broadcasting Company".Parliamentary Debates (Hansard).House of Commons. col. 1552W–1553W.
- ^Briggs 1961,p. 189.
- ^abClark 2010.
- ^Parker 1977.
- ^Briggs 1961
Bibliography
[edit]- Gilder, Eric (2003).Mass Media Moments in the United Kingdom, the USSR and the USA.Romania:Lucian Blaga University of SibiuPress.ISBN973-651-596-6.
- This book contains historical background relating to the British Broadcasting Company Ltd., its founding companies; their transatlantic connections; General Post Office licensing system; commercial competitors from Europe prior to World War II and offshore during the 1960s.
- Briggs, Asa(1985).The BBC – The First Fifty Years.Oxford: Oxford University Press.ISBN0-19-212971-6.
- The first two lengthy chapters of this book cover in detail the BBC's history prior to the creation of the British Broadcasting Corporation in 1927.
- Parker, Derek(1977).Radio: The Great Years.Newton Abbot: David & Charles.ISBN0-7153-7430-3.
- Contains a full page readable reproduction of the first edition of theRadio Times,28 September 1923. The lead article is by Arthur R. Burrows, Director of Programmes for the British Broadcasting Company Ltd. His headline asks: "What's in the air?"
- *Burrows, Arthur R.(28 September 1923)."What's in the air?".Radio Times.Vol. 1, no. 1. London: British Broadcasting Company. p. 1.
- Its stations are listed as serving "London, Cardiff, Birmingham, Newcastle, Manchester, Glasgow." An article by Peter Eckersley promises to inform readers about "Simultaneous Broadcasting."
- *Eckersley, Peter P.(28 September 1923)."What are the wild waves saying? The troubles of simulateous broadcasting".Radio Times.Vol. 1, no. 1. London: British Broadcasting Company. p. 19.
- Curran, Charles(1972). "The First Fifty Years".BBC Handbook 1973.London: British Broadcasting Corporation.
- Coase, Ronald(1950).British Broadcasting, A Study in Monopoly.Cambridge, MA: Harvard University Press.
- Eckersley, Peter P.(1941).The Power Behind the Microphone.London: Jonathan Cape.
- Peter Eckersley was hired as Chief Engineer by the British Broadcasting Company Ltd.
- Reith, John(1924).Broadcast Over Britain.London: Hodder and Stoughton.
- Briggs, Asa(1961).The History of Broadcasting in the United Kingdom: Volume I – The Birth of Broadcasting.Oxford: Oxford University Press.
- Sponsorship of programmes by the British Broadcasting Company: See page 189 for details of eight sponsored concerts during 1925 by theEvening Standard,News of the World,Daily Herald,Weekly Dispatch,AnswersandTitbits.The sponsorship consisted of these publications advertising in print the fact that their concerts were being broadcast by the BBC which at that time could not afford to produce its own concert programmes that would match the standard of those produced by the newspaper sponsors.
- Clark, Lorne (2010).Shareholders of the British Broadcasting Company.BVWS Books.ISBN978-0-9547043-6-0.
External links
[edit]- History of Writtle where Captain Peter Eckersley conducted the first licensed British broadcasts.This site contains pictures of Peter Eckersley and the now famous shed from which he conducted his first broadcasts on behalf of Marconi's Wireless Telegraphy Company, Limited.
- Marconi HouseInformation and images of the early London radio studios of the British Broadcasting Company. (The first BBC office was in the GEC building.)
- Radio Licence funding historyArchived information and images of radio licences. The BBC is funded by a mandatory licence fee.
- BBC
- British companies established in 1922
- Mass media companies established in 1922
- Mass media companies disestablished in 1926
- 1926 disestablishments in the United Kingdom
- 1920s in the United Kingdom
- Interwar Britain
- Defunct mass media companies of the United Kingdom
- Radio broadcasting companies of the United Kingdom