The purpose for which it was established was not because Westinghouse Company, the company behind KDKA, saw the immense profits behind commercial radio. Rather, it was because Westinghouse Company wanted to compete with American Telephone and Telegraph Company, General Electric Company, and American Radio Company for wireless radio patents.
"That's right, it's a wireless broadcasting radio station company!" Donnie nodded with certainty, "I want to make sure every American can hear the sound of our radio station!" Follow current ɴᴏᴠᴇʟs on NovᴇlFɪre.ɴet
"This?" Brad showed a hint of confusion and said, "Donnie, as a friend, I must remind you that your idea is not a very good one.
To establish a commercial broadcasting station, first you need complete broadcasting equipment; you'll have to build your own signal transmission stations in all major cities across America. Additionally, you'll need content. These all represent huge investments, and a radio station — will it really have a fixed audience?
Although Brad didn't fully understand what a commercial radio station was all about, he knew the operation of a radio station. Currently, most radio stations within the United States were military-operated, and from this, one could glimpse the embryonic form of commercial radio stations.
"Currently within the country, not to mention the entire United States, but the entire world lacks a commercial radio station. You don't think nobody else has noticed this, do you?
The reason nobody has done this until now is primarily because no one has found a profitable model, despite recognizing the significant investment required."
Lacking a profit model and faced with massive investments — that's the reason there are no commercial radio stations within the United States!
Naturally, Donnie was aware of this. Historically, following the establishment of KDKA, the United States and European countries began to set up their own commercial radio stations.
Speaking of the United States alone, after the peak period of establishing commercial radio stations had passed, by the following year, 14% of the radio stations had to shut down due to the inability to afford maintenance costs of their transmission stations.
But Donnie had his own ideas about this: "You don't need to worry about the funds and profitability, I will solve these issues. As for the application for licenses, Mr. Dorne, do you have any more questions?"
Although the maintenance costs for commercial radio stations were high, Donnie understood that the radio would become an important medium in the United States for the next two to three decades.
Just considering the United States, in 1928, it was estimated that there were 8 million radios within the country, not counting those assembled by individuals.
If you include the individually assembled ones, that number would exceed 13 million.
And how many people did the entire United States have?
In terms of revenue, in 1924, the advertising revenue of various commercial radio stations in the United States was 4 million US dollars. By 1928, this revenue had reached 10.5 million US dollars.
Even more importantly, as radios became a household necessity in America, many politicians also began delivering speeches on commercial radio stations... much like television speeches in later times!
As for the audience after the radio station was established, Donnie wasn't too worried because he had three trump cards at hand!
The first trump card had already been played — the Miss America pageant!
As long as the Miss America pageant was well-known across America, Donnie believed that the citizens of any city would want to know the results in real-time.
But the distribution of newspapers was too slow!
As for the other two trump cards, Donnie needed to play them gradually.
"Well, since you've decided, what else can I say? I will do it tomorrow. But Donnie, I still want to remind you to prepare a large amount of cash in advance. This business is going to empty your wallet!"
Funding was the least of Donnie's worries at the moment.
He had previously obtained $500,000 in cash from Ponzi and then got access to one of his secret accounts. After giving $50,000 to Van Olden, Donnie could still get more than $180,000 in cash.
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All these added up to more than $600,000 in cash.
It was more than enough start-up capital to establish a commercial radio station!
It was precisely because Donnie had obtained this sum of money that he now had the courage to establish his own commercial radio station.
"Any problem that can be solved with money is not a problem!"
Donnie said confidently.
Seeing Donnie so resolute, Brad was completely out of arguments.
"Donnie Block is going to establish a commercial radio station!"
Late at night, after leaving The Fuli Tavern, Brad Dorn told Elena upon returning home.
"It's a crazy plan, and I don't think he will succeed!"
In front of his wife, Brad Dorn didn't hold anything back.
Elena turned her attention away from the WCTU documents and looked at Brad, "A commercial radio station?"
"Ah..." Brad explained Donnie's idea to Elena.
After hearing it, Elena said directly, "I don't think you need to be fixated on whether Donnie can make this business work, but rather you should consider what kind of benefits this business brings to you!"
Brad Dorn asked with lack of understanding, "What do you mean?"
"As Atlantic City is the city where Donnie is based, since he wants to establish a commercial radio station, the first thing he must win over is the city, and then the whole state of New Jersey," Elena Dorn explained.
"Regarding the situation in Atlantic City, we are all aware of it. Look at our family and the other neighbors; almost every household has a recording machine.
And Donnie's commercial radio station will have no competitors, meaning we can listen to the content broadcasted by Donnie's station every day on a fixed schedule.
Compared to those stations without licenses that are unable to hold a fixed frequency, that's already a huge advantage!"
Although there isn't a commercial radio station in the United States, there are many personal stations. However, because they do not have licenses, they cannot fix their audience, and so they have never become significant.
This is also why radios still have a market even in the absence of commercial stations.
Although radios cannot be used to listen to a particular commercial station regularly, tuning in to some external sounds is still quite interesting for people of that era!
"So you're saying, Donnie's commercial radio station will have a fixed viewership in Atlantic City, in New Jersey, and these people are all upper-middle-class Americans and above. If our name can appear in that broadcast..."
Brad Dorn confirmed with Elena.
"Yes, that's exactly what I mean, so it doesn't matter to us whether Donnie Block's radio station can make money, but if this station becomes successful, it will be very significant for us!"
Elena said with a smile.
"I understand!" Brad also smiled!