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British Broadcasting Company

The British Broadcasting Company Limited (BBC) was the commercial forerunner of the public British Broadcasting Corporation and formed on 18 October 1922 by British and American electrical companies doing business in the United Kingdom. Licensed by the British General Post Office, its original office was located on the second floor of Magnet House, the GEC buildings in London and consisted of a room and a small antechamber.

On 14 December 1922, John Reith was hired to become the managing director of the company at that address. The company later moved its offices to the premises of the Marconi 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-chartered British Broadcasting Corporation (BBC).

In Britain prior to 1922, the General 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 modern British communication laws were established, concerned:

All these activities require a government licence which was originally granted by the General Post Office.

The invention of the electrical telegraph came 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 the wireless telegraphy which was then placed under the Wireless Telegraphy Act 1904.

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 the Department of Commerce (these duties were transferred in 1934 to the Federal Communications Commission) and offering several hours of programming, usually at night. Two of the first stations were WWJ in Detroit (then known as 8MK) and KDKA in Pittsburgh (which has claimed to be the first station specifically licensed for commercial broadcasting; however commercial licences were actually not awarded until September 1921). In France experimental broadcasts started in November 1921.

In the United Kingdom, all broadcasts were licensed by the GPO, who were reluctant to license any fully commercial stations and initially only 'experimental' stations were allowed on air.

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 the Wireless Telegraphy Act 1904.

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