Business & Finance: Radio vs. Phonograph

The effect of a new popularized invention upon parallel products can never be forecast exactly. Sometimes competitors are driven out of business, sometimes greatly stimulated.

Unquestionably, the phonograph manufacturers have been somewhat uneasy in watching the huge forward strides made by the apparently competing radio industry. Yet, judging from the experience of the Victor Machine Co. at least, the radio seems to be a friend rather than a foe. Victor’s Camden (N. J.) plants are working at capacity to turn out enough machines and records to satisfy the demand. The Premier Graphophone Company’s new plants are fully employed, and its production schedule is the largest on record.

There are several apparent reasons why the radio has stimulated rather than depressed the phonograph trade. First of all, retail dealers are equipping Victrolas as radio receivers and selling them. Secondly, the popularity of many songs and even classical music broadcast by radio has led to the purchase of the same selections in the form of permanent phonograph records. Lastly, many home audiences maintain a phonograph to intersperse favorite selections with the sometimes unattractive features of radio broadcasting programs.