Abc News Information

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Submitted By chetanj15
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History
Creating ABC

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 Corporation's New York City 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 Newark as the lead station (purchased by RCA in 1923 from Westinghouse) . These were the foundations of RCA's two 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 a three-year investigation, the FCC in May 1940 issued a "Report on Chain Broadcasting." Finding that NBC Red, NBC Blue, CBS, and MBS 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, but it could influence them by its licensing of 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…...

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