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From the organization of the first true radio networks in the late 1920s, broadcasting in the United States was dominated by two companies, CBS and RCA's NBC. Before NBC's 1926 formation, RCA had acquired AT&T's New York station WEAF (later WNBC, now CBS-owned WFAN). With WEAF came a loosely organized system feeding programming to other stations in the northeastern U.S. RCA, before the acquisition of the WEAF group in mid-1926, had previously owned a second such group, with WJZ in New York as the lead station (purchased by RCA in 1923 from Westinghouse) . These were the foundations of RCA's two distinct programming services, the NBC Red and NBC Blue networks. Legend has it that the color designations originated from the color of the push-pins early engineers used to designate affiliates of WEAF (red pins) and WJZ (blue pins). After years of study, the FCC in 1940 issued a Report on Chain Broadcasting. Finding that two corporate owners (and the co-operatively owned Mutual Broadcasting System) dominated American broadcasting, this report proposed divorcement, requiring the sale by RCA of one of its chains. NBC Red was the larger radio network, carrying the leading entertainment and music programs. In addition, many Red affiliates were high-powered, clear-channel stations, heard nationwide. NBC Blue offered most of the company's news and cultural programs, many of them sustaining or unsponsored. Among other findings, the FCC claimed RCA used NBC Blue to suppress competition against NBC Red. The FCC did not regulate or license networks directly. However, it could influence them by means of its hold over individual stations. Consequently, the FCC issued a ruling that no license shall be issued to a standard broadcast station affiliated with a network which maintains more than one network. NBC argued this indirect style of regulation was illegal and appealed to the courts. However, the FCC won on appeal, and NBC was forced to sell one of its networks. It opted to sell NBC Blue. (*) |
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