Most of the credit for Nashville becoming Music City belongs, oddly
enough, to an insurance company. In 1925, the National Life and Accident
Insurance Company had the ingenious idea of launching a radio station
in Nashville to promote its business. They called it WSM for their
company motto "We Shield Millions" and they mostly played classical and
easy-listening "dinner" music. But Saturday nights were reserved for the
WSM Barn Dance, an evening of live (and lively) country music.
Read the article over at HowStuffWorks here.
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