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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.<br />Before NBC's 1926 formation, RCA had acquired AT&T's New York station WEAF (later WNBC, now CBS-owned WFAN).<br />With WEAF came a loosely organized system feeding programming to other stations in the northeastern U.S.<br />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) .<br />These were the foundations of RCA's two distinct programming services, the NBC Red and NBC Blue networks.<br />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).<br />After years of study, the FCC in 1940 issued a Report on Chain Broadcasting.<br />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.<br />NBC Red was the larger radio network, carrying the leading entertainment and music programs.<br />In addition, many Red affiliates were high-powered, clear-channel stations, heard nationwide.<br />NBC Blue offered most of the company's news and cultural programs, many of them sustaining or unsponsored.<br />Among other findings, the FCC claimed RCA used NBC Blue to suppress competition against NBC Red.<br />The FCC did not regulate or license networks directly.<br />However, it could influence them by means of its hold over individual stations.<br />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.<br />NBC argued this indirect style of regulation was illegal and appealed to the courts.<br />However, the FCC won on appeal, and NBC was forced to sell one of its networks.<br />It opted to sell NBC Blue. (*) |
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