In 1919, RCA moved into the music business by purchasing the music publishing company, the Victor Company. Victor, at the time, was the leading company and force in recording technology. It was a large company, so in order for RCA to acquire the Victor company they had to take loans from GE and Westinghouse. When they merged, they called the new company RCA Victor, and manufactured radio sets, radio-phonograph combination sets and records.
In 1930, RCA released the first available vinyl long-playing record, they called them Program Transcription discs. The discs, that were 12" in diameter, were designed to be played at 33 and a third rpm. However, the launch of these program transcription discs proved to be a commercial failure because of its affordability, lack of reliable playback equipment and The Great Depression.
During 1948 to 1950, the rivalry between RCA Victor and Columbia grew as consumers were unsure about which of the formats would overcome the other in the market. Columbia created the 12", 33 1/3 rpm long play (LP) microgroove record in 1939. So to compete against that, RCA Victor created a 7", 45 rpm extended play (EP) record. It was eventually decided that the LP was dominant for albums, as it could play for a half hour on each side, and the EP was dominant for singles, since it played for a short amount of time and could only fit one song on each side.
Sources:
Millard, André. America on Record : a History of Recorded Sound. Second ed. Cambridge: Cambridge UP, 2005. Print.
"About Vinyl Records." The Record Collectors Guild :: A Website for the Record Collector. (News). The Record Collectors Guild, 1998. Web. 20 Nov. 2011. <http://www.recordcollectorsguild.org/modules.php?op=modload>.