Monopolistic Practices of the Radio Networks

Description
Following the introduction of radio broadcasting in the early 1920s, the American Telephone and Telegraph Company (AT&T) developed the first radio network, linking together individual stations with specially prepared long-distance telephone lines in what at the time was called a "chain". The key station was AT&T's WEAF now WFAN in New York City. The network featured a variety of regularly scheduled programs which included sponsorships at the time not called advertising but "toll broadcasting. From the beginning, AT&T planned to eventually expand nationwide, so that national companies would be able reach large portions of the nation with their brand names and slogans in an efficient manner. At first the network's expansion was slow. In 1924, the Eveready Hour was broadcast over 12 stations, primarily located in the U.S. Northeast. Eveready Hour was the first commercially sponsored variety show in the history of broadcasting. By 1925, AT&T had linked together 26 stations in its network. AT&T eventually decided to concentrate on its most profitable business, telephones, and in 1926 sold its broadcasting interests to the Radio Corporation of America (RCA). RCA's purchase included an agreement to lease AT&T phone lines. After acquiring WEAF and AT&T's network assets in 1926, RCA created the National Broadcasting Company (NBC) and reorganized the WEAF chain with WG. One explanation for the color designations is that they reflected the red and blue push pins used on a map that AT&T originally used to designate the affiliated stations on the two networks. On 23 December 1928, NBC instituted the first permanent transcontinental network. As of September 1938, when there were 154 NBC outlets; 23 composed the basic Red network and 24 composed the basic Blue network. Supplementing these basic networks were 107 stations, of which one was available only to the basic Red network, six were available only to the basic Blue network, and the remainder available to either. NBC also had a chain of shortwave stations, called the "NBC White Network", in the 1930s.
In 1941, the Federal Communications Commission's (FCC) Report on Chain Broadcasting reviewed the alleged monopolistic practices of the radio networks. The FCC was concerned NBC Red and NBC Blue were anti-competitive. Because the FCC did not have the power to directly regulate networks, it decided to enact regulations affecting the stations, and adopted standards intended to force NBC to relinquish one of its networks. In 1943, the Supreme Court upheld the FCC's power to enforce its chain broadcasting regulations. As a consequence, NBC Blue was sold to Edward Noble who later named it the American Broadcasting Company (ABC). After NBC Blue was divested the remaining NBC Red network was renamed the NBC Radio Network.
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John Greesham
Journal coordinator
International Journal of innovative research in computer and communication engineering