Due to a combination of the economic and industrial growth of the Roaring Twenties and technological change, radio, which was still a young industry at the beginning of that era, grew into one of the industrial titans of the United States' economy.
When industries grow and make big profits, they have to think of new ideas to keep their growth alive. Usually, this involves investing in new or growing technologies to keep appealing to their current customers. Sometimes, this works to tremendous effect and the companies continue to contribute to economic growth, and sometimes it works against them and they lose a lot of money (some of these companies have to declare bankruptcy and close down). An example of a failed technology is the Betamax format of home video technology that lost the format war to VHS.
After World War I, there was a substantial boom in the United States' economy. This period, known as the Roaring Twenties, led to industries being able to expand their bases. During this time, many companies, such as Tums, had a lot of faith in the radio industry, and invested in it to help it grow. By getting the word out about radio in many ways, such as by advertising programs in newspapers and magazines, the broadcasting companies and their investors were able to attract more and more listeners. As more people tuned in, the companies saw more profits. As stated in the text, this eventually led to the founding of companies which included the likes of the National Broadcasting Company (NBC) and the Columbia Broadcasting System (CBS), which were created exclusively for radio broadcasting. The creation of these companies solidified radio as a force to be reckoned with along side the highest earning of United States' industries.
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