Even though industry factors, regulation and government intervention, and audience demand had important contributions in molding the radio industry in the 1920s, to me, technological advancement and radio innovations laid the foundations for these other forces to take place. Without modern radio technology at that time, these other factors would not have been as significant.
We can’t talk about the affects of technological change without mentioning Guglielmo Marconi and David Sarnoff’s contributions. Marconi improved the Hertz transmitter, succeeded in having a transatlantic transmission in 1901, and founded British Marconi and American Marconi as two-way radio businesses, while Sarnoff developed the commercial radio industry and envisioned the radio as a household music box and a mass audience radio. After WWII, AT&T established itself as the first network. AT&T connected stations by telephone lines and was the first to use advertising and fees for using radio. Without these technological innovations, radio in the 1920s would not have been used as a universal means of communication or entertainment.
Some people argue that government regulation was the most influential force in affecting the radio industry; however, government regulation would not have been necessary if technological advancement had not taken place. Because more frequencies had been discovered, the government had to step in to regulate who would be able to broadcast on these frequencies and established this by requiring radio stations to earn licenses. Also the government also only stepped in when AT&T started to have a monopoly on radio because of its state-of-the-art technology. The only reason government intervention was ever needed was because of technology and radio expansion.
photo taken from rent-direct.com