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Companies that vanished: RCA's legacy still resonates

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This post is part of a series on some of the most memorable companies that have disappeared.

RCA is perhaps one of the most famous abbreviations ever. Even though most people have probably heard of it, I'd be willing to say that quite a few would be stumped at what the letters stood for. Do you know? (No Googling allowed!) That's okay, because I'll tell you. RCA was the Radio Corporation of America.

According to a history at a site dedicated to RCA's current licensing initiatives, General Electric (NYSE: GE) established RCA in 1919 to fulfill a request made by the U.S. government during World War I. The government recognized the importance of radio patents during wartime and did not want GE to go through with a transaction that would see broadcasting materials sold to the British Marconi business. So, instead of interacting with British Marconi, the American Marconi business was absorbed into RCA.

As the years went by, RCA sold radios made by GE and Westinghouse and became involved in broadcasting. The radio medium saw its popularity rise in the early part of the 20th century, leading RCA to buy, along with GE and Westinghouse in 1926, a station in New York with the call sign WEAF. This was the genesis for the National Broadcasting Company, which you know better as NBC (and to think that a lot of pundits find GE's ownership of NBC Universal quizzical). Eventually, RCA bought out the Victor Talking Machine company in 1929. Yep, thus was born RCA Victor. Now, you might associate RCA Victor with that famous dog logo (I know I do). I didn't realize this, but that dog is called Nipper, he's said to be a Fox Terrier, and according to some legends I've read, he was thus named because he liked to bite people. Who knows, but I sure wouldn't want to bother him while he's listening to that phonograph of his!

But the time-line doesn't end there. RCA would move on to form RKO Pictures, become a major presence at Rockefeller Center's Radio City, and to distribute a famous brand of color television sets in the 1950s. In fact, for those who think paying a grand for big-screen flat-panel devices of today is exorbitant, how about paying that same amount for a screen the size of a ruler?! Believe it or not, that's what you would have shelled out for a small color unit way back when. NBC shows that were produced in color helped to create demand for RCA's color-TV products.

You've seen the RCA name on many electronic products, such as VCRs, stereo headphones, and DVD players. But did you know that RCA was in many different lines of business throughout its corporate life? Believe it or not, RCA, at different points in its later evolution, decided to diversify itself with really odd choices considering its electronic past. Incredibly, RCA invested in the Hertz rental-car agency, Banquet foodstuffs, publisher Random House, and, strangest of all (to me, at least), Gibson greeting cards. And to think I thought CBS (NYSE: CBS) buying CNET was quirky! Not even close.

As the RCA life cycle began to naturally wind down because of financial missteps during its latter existence, GE eventually took it over in 1986 and began a series of transactions to extract value from it. Today, the RCA brand, and that cute little dog, live on through licensing deals by current trademark owner Thomson, Inc. So, even though the original RCA entity is technically gone, its image does still resonate with consumers of today.

For many, RCA is a beloved name, and there are a lot of collectors out there who seek electronic products marketed by the old Radio Corporation of America in the previous century. As you can tell, this former powerhouse of old media has a rich history, one that is both fascinating and important in the context of the technological development of the country. For that reason, people love, respect, and will always remember these three letters as a seminal force in broadcast entertainment.

Disclosure: I own shares of General Electric; positions can change at any time.

Let us know in the comments what you miss about RCA. And be sure to check out other Companies That Have Vanished.

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Last updated: November 09, 2009: 12:45 AM

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