Chain broadcasting

Chain Broadcasting is the act of connecting two or more radio stations to broadcast the same program at the same time.^[1]

AT&T starts chain broadcasting

AT&T or American Telephone and Telegraph started the first radio network with the ability to link radio stations through telephone lines. To begin with, AT&T owned the network WEAF in New York City. AT&T started the network in 1921 due to its interest in testing the development of radio technology. The station had a variety of regularly scheduled programs which included sponsorships (not called advertising at the time). Due to the great success of WEAF, many other stations across the US longed to "chain" the programming. Thus, AT&T began sharing programs across stations.^[2]

The Radio Corporation of America or RCA, in an effort to compete, started modeling AT&T’s network idea, but this proved difficult because RCA had to lease the phone lines from AT&T ultimately creating a conflict of interest. The Federal Trade Commission intervened and charged AT&T with anti-trust violations. AT&T recanted the idea.

AT&T decided to promote its most profitable business, telephones, and in 1926, AT&T sold their broadcasting interests to RCA. At the time, RCA was the only real competition. RCA purchased the network with the agreement to lease AT&T’s phone lines. Only one other competitor, Western Union telegraph company, used the network scheme with a downgraded quality.^[3]

NBC Red and NBC Blue

After acquiring WEAF in 1926, RCA created the National Broadcasting Company (NBC) and operated the two networks side by side. However, a year after, RCA split the two and created NBC Red, with WEAF as the originating station, and NBC Blue with WJZ as its originating station. It has been said that the color designations came from red and blue push pins used on a map that AT&T’s people originally used to separate AT&T’s stations and RCA’s stations.^[4]

In 1941, the FCC issued a ‘’Report on Chain Broadcasting’’, desiring to investigate the monopolistic practices of the radio networks. The FCC was concerned NBC Red and NBC Blue were anti-competitive. Since the FCC does not have the power to regulate the networks, they decided aim the regulations to the stations. In 1943, the Supreme Court upheld the FCC’s power to enforce chain broadcasting regulations. ^[5][6]

CBS

In 1927, the Columbia Phonograph Record Company started a new network named the Columbia Broadcasting Company (CBS). William S. Paley bought Columbia a year later and used it to promote entertainment and news programming. He quickly turned the failing company around.

WGN

In 1934 the Mutual Network emerged with WGN in Chicago as its flagship station. It began with only a few stations and grew quickly.^[7]

NBC Blue becomes ABC

However, the competition with NBC and CBS was too strained. The FCC recognized the monopoly NBC had on network broadcasting and in 1941 ordered them to divest one of the networks. It was evident that NBC controlled the majority of the audiences as well as its affiliates and advertising dollars. NBC fought the order but ultimately lost and sold one of its networks in 1945. NBC Blue was sold to Edward Noble, who later renamed it American Broadcasting Company (ABC).^[8] NBC Red was renamed NBC Radio Network after NBC Blue divested.^[9]