Chain broadcasting

The notion of connecting two or more radio stations to broadcast the same program at the same time is said to have existed since the start of broadcasting. But chain broadcasting, also known as network broadcasting, actually began later.^[1]

AT&T starts chain broadcasting

The AT&T or American Telephone and Telegraph company started the first radio network with its ability to link radio stations through telephone lines. To begin with, AT&T owned the network WEAF in New York City. AT&T started the network in 1921 because of its interest in testing its development of radio technology. The station had a variety of regularly scheduled programs which included sponsorships. It was not called advertising at the time. And because of the great success of WEAF many other stations across the US wanted to share the programming. Thus, AT&T began sharing programs across stations.^[2]

The Radio Corporation of America or RCA, in an effort to compete, started modeling AT&T’s network idea, but this proved difficult because RCA had to lease the phone lines from AT&T ultimately creating a conflict of interest. The Federal Trade Commission intervened and began to charge AT&T with anti-trust violations. AT&T was then forced to realize they could not be involved in both.

AT&T decided to stick its most profitable business, telephones, and in 1926 AT&T sold their broadcasting interests to RCA. At the time, RCA was the only real competition. RCA purchased the network with the agreement to lease AT&T’s phone lines. There was only one other choice at the time and that was Western Union’s telegraph company and their quality was lacking.^[3]

NBC Red and NBC Blue

After acquiring WEAF, in 1926, RCA created the National Broadcasting Company or NBC and operated the two networks side by side. However, after a year RCA split the two and created NBC Red Network and NBC Blue Network: NBC Red, with WEAF as the originating station, and NBC Blue with WJZ as its originating station. It has been said that the color designations came from red and blue push pins used on a map that AT&T’s people originally used to separate AT&T’s stations and RCA’s stations.^[4]

In 1941, the FCC issued a ‘’Report on Chain Broadcasting’’, because they wanted to investigate the monopolistic practices of the radio networks. The FCC was most concerned about NBC Red and NBC Blue which the commission thought was anti-competitive. Since the FCC does not have the power to regulate the networks, they decided aim the regulations to the stations. In 1943, the Supreme Court took away the FCC’s power to enforce chain broadcasting regulations. ^[5]

CBS

In 1927 the Columbia Phonograph Record Company started a new network named the Columbia Broadcasting Company (CBS). William S. Paley bought Columbia a year later and used it to promote entertainment and news programming. He quickly turned the failing company around.

WGN

In 1934 the Mutual Network emerged with WGN in Chicago as its flagship station. It started small with only a few stations and grew quickly.^[6]

NBC Blue becomes ABC

However, the competition with NBC and CBS was too much. The FCC recognized the monopoly NBC had on network broadcasting and in 1941 ordered them to divest one of the networks, or sell off … if you will. This is because it was evident that NBC controlled the majority of the audiences as well as its affiliates and advertising dollars. NBC fought the order but ultimately lost and sold one of its networks in 1945. NBC Blue was sold to Edward Noble, who later renamed it American Broadcasting Company (ABC).^[7] The NBC Red Network was renamed NBC Radio Network after NBC Blue sold.^[8]

So, in short, AT&T started the first official radio network in 1921 and then sold to the competition which was RCA. Who in turn split the new whole network in two, which became NBC blue and NBC red. Then came CBS in 1927 and the Mutual Network in 1934. Then ultimately because NBC’s was essentially too big to compete with they were ordered to sell. But, despite the order from the court, Mutual failed after struggling financially and ABC fell to third place.

1. ^ White, Thomas H.. "Early Radio History". http://earlyradiohistory.us/sec019.htm. 
2. ^ Snyder, James. "National Broadcasting Company". http://www.oldradio.com/archives/prog/nbc-js.htm. 
3. ^ Perry, Stephen D. (2004). A Consolidated History of Media (4th edition). Bloomington, IL: Epistelogic
4. ^ Snyder, James. "National Broadcasting Company". http://www.oldradio.com/archives/prog/nbc-js.htm. 
5. ^ Rivera-Sanchez, M. (1998). Report on Chain Broadcasting. History of the Mass Media in the United States, An Encyclopedia, pg 590–591.
6. ^ Perry, Stephen D. (2004). A Consolidated History of Media (4th edition). Bloomington, IL: Epistelogic
7. ^ Rivera-Sanchez, M. (1998). Report on Chain Broadcasting. History of the Mass Media in the United States, An Encyclopedia, pg 590–591.
8. ^ Snyder, James. "National Broadcasting Company". http://www.oldradio.com/archives/prog/nbc-js.htm.