The Transition from NBC Blue Network to ABC: A Comprehensive Overview

NBC Blue Network, a radio network operated by the National Broadcasting Company (NBC), eventually evolved into the American Broadcasting Company (ABC), a major television network in the United States. This transition, marked by a series of regulatory pressures, antitrust concerns, and strategic decisions, is a crucial chapter in the history of American broadcasting.

Origins of NBC and the Early Broadcast Environment

Initially, Radio Corporation of America (RCA), General Electric, Westinghouse, and ATT set up a grouping of stations based around WEAF in New York. ATT's participation was crucial because they controlled the phone lines that carried programming from New York to individual stations. However, ATT insisted that only they could sell advertising. A second grouping was established based around WJZ in New York using telegraph lines, but the quality was poor.

In 1927, ATT sold their portion of the WEAF grouping to RCA and leased the use of their phone lines to RCA. In late 1926, RCA created NBC (National Broadcasting Company). NBC then had both the WEAF grouping of stations and the WJZ grouping. With multiple stations in the same city, they created two networks: NBC Red and NBC Blue. NBC Red carried more commercial programming, while NBC Blue was generally "sustaining" or commercial-free. Successful shows on NBC Blue often moved up to NBC Red.

Regulatory Pressures and the Divestiture of NBC Blue

In 1934, the Mutual Broadcasting System filed a complaint with the Federal Communications Commission (FCC) about the difficulties in establishing new stations in a market dominated by CBS and the two NBC networks. This led to a 1938 investigation about monopolistic effects of network broadcasting. In 1939, the FCC found that RCA's ownership of the Red and Blue networks, along with its owned-and-operated stations, dominated audiences, affiliates, and advertising in American radio. They ordered RCA to divest itself of either the Red or the Blue networks.

RCA fought the Commission's decision all the way to the Supreme Court. While they were fighting the decision, NBC separated the networks formally into NBC Red Network Inc. and Blue Network Inc. In 1943, after losing a final appeal before the US Supreme Court, RCA was forced to sell the Blue Network. In October 1943, RCA completed the sale of Blue Network Inc. to the American Broadcasting System (ABS), a company recently founded by Edward J. Noble, the owner of Lifesavers candy and a former Undersecretary of Commerce. Noble later brought the rights to the name American Broadcasting Company (ABC).

The Evolution and Identity of ABC

Initially, the Blue Network did not "evolve" into ABC but rather it was purchased and renamed. The Blue Network's identity was initially the same as the old Blue Network, but over a rather short period of time, it developed its own identity. This transition was marked by a series of strategic and regulatory changes, leading to the establishment of ABC as a major television network recognized today.

Conclusion

The transition from NBC Blue Network to ABC is a testament to the complex landscape of American broadcasting, characterized by regulatory pressures, antitrust concerns, and strategic decisions. This article provides a comprehensive overview of this pivotal period in American media history.