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Blue Network
Blue Network
from Wikipedia

The Blue Network (previously known as the NBC Blue Network) was the on-air name of a former American radio network, which broadcast from 1927 through 1945.

Key Information

Beginning as one of the two radio networks owned by the National Broadcasting Company (NBC), the independent Blue Network was born of a divestiture in 1942, arising from antitrust litigation. In 1945, the Blue Network formally became the American Broadcasting Company (ABC).

Early history

[edit]

The Blue Network dates to 1923, when the Radio Corporation of America acquired WJZ in Newark, New Jersey, from Westinghouse, which had established the station in 1921.[1] WJZ moved to New York City in May of that year. When RCA commenced operations of WRC in Washington, D.C., on August 1, 1923, the root of a network was born, though it did not operate under the name by which it would later become known. Radio historian Elizabeth McLeod said it was not until 1924 that the "Radio Group" formally began network operations.[2]

The core stations of the "Radio Group" were RCA's stations WJZ and WRC, along with the Westinghouse station WBZ, then in Springfield, Massachusetts, and WGY, the General Electric station in Schenectady, New York.[2]

RCA's principal rival before 1926 was the radio broadcasting department of the American Telephone & Telegraph Company. In 1921, AT&T began using this department as a test-bed for equipment being designed and manufactured by its Western Electric subsidiary.

The RCA stations operated at a significant disadvantage to their rival chain. AT&T used its high-quality transmission lines, and declined to lease them out to competing entities, forcing RCA to use the telegraph lines of Western Union, which were not as well calibrated to voice transmission as the AT&T lines.[3]

Nevertheless, the WJZ network sought to compete toe-to-toe with the AT&T network, which was built around a different New York station, WEAF. For example, both stations sent announcer teams to cover the 1924 Democratic National Convention, which was held in Madison Square Garden in New York City.[4] Promotional material produced in 1943 claimed certain "firsts" in broadcasting by WJZ, such as the first educational music program in April 1922, the first World Series broadcasts in 1922, and the first complete opera broadcast, The Flying Dutchman, from the Manhattan Opera House.[5]

Creation

[edit]

RCA (as well as its consortium partners General Electric and Westinghouse)[6] received a break in 1926, when AT&T made a corporate decision to exit the broadcasting business and focus on its telecommunications business.

The first step by AT&T was to create the Broadcasting Company of America on May 15, 1926, to hold its broadcasting assets, which included WEAF and WCAP in Washington. As reported in the press, this move was due to the growth in the radio broadcasting activities of AT&T and the special issues related thereto,[7] though it would appear that subsequent activities in disposing of the assets of BCA may have also played a role in the decision. AT&T did in fact subsequently sell WEAF to RCA for $1 million in July 1926,[8] a price that newspaper reports indicated was a substantial premium over what other stations were commanding in the marketplace,[9] and represented a recognition of the status of WEAF in broadcasting, as well as its access to AT&T's lines. Indeed, the negotiations for the sale may have taken place very shortly after the creation of BCA, as Folder 129 in the NBC History Files at the Library of Congress contains a contract of sale for WEAF dated July 1, 1926.[10] The Oakland Tribune stated that 4/5ths of the purchase price of WEAF could be attributed to goodwill and the line access.[11] On July 28, 1926, the Washington Post reported in a front-page story that RCA had acquired WCAP. The Oakland Tribune reported the same day[12] that WCAP had departed the field, and WRC would be operating on the frequency they had shared, which was 640 AM.

NBC networks, 1933

As part of the reorganization of the broadcasting assets in the wake of the acquisitions, on September 13, 1926, the formation of the National Broadcasting Company was announced via newspaper advertisements, and on November 15, 1926, NBC's first broadcast was made.[13] This first broadcast on November 15, 1926, marked NBC's de facto formation of the NBC Red Network from the WEAF network assets, using WEAF as the "key station"; this network in eventual popular image tended to broadcast the most popular entertainment programming. RCA merged its former radio operations into NBC, and on January 1, 1927, WJZ became the "key station" of the Blue Network when its network switch operations began.[14] The network, again in eventual popular image, tended to place its focus more on news and public affairs programming, as well as the "sustaining", or non-sponsored shows.

The Decatur Review (Illinois) for Sunday, December 12, 1926, reported the following in an article describing a broadcast to be sponsored by the Victor Talking Machine Company and aired the following New Year's Day, January 1, 1927, which is a description of this first Blue Network broadcast—note that it makes it clear that January 1, 1927, marked the debut of the Blue Network:

TWO BIG NETWORKS: The network to be used for the first concert will consist of a combination of chains of stations affiliated with WEAF and WJZ, New York. It is also announced that this opening Victor program inaugurates a new chain system to be operated by the National Broadcasting Company, with WJZ as the "key" station. This new chain, which will be known as the "blue" network, will allow simultaneous broadcasting from WJZ through WBZ, Springfield and Boston, KDKA, Pittsburgh, and KYW, Chicago. For broadcasting of the first program, therefore, the "blue" network will be joined with the "red" network, as the WEAF chain is designated, as well as other stations in various cities. Following the New Year's night program, the concerts will be given bi-monthly, through the "blue" network (...)[15]

Allegedly, the color designations came from the way the networks were represented on maps, with red lines (or pushpins) denoting the WEAF network circuits, and blue the WJZ circuits.[16]

Operations, 1927–1941

[edit]

Cooperation with the Red Network

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The Red and Blue Networks shared a common pool of engineers and facilities,[2] and would on occasion, broadcast the same events. There are two early examples, from the biggest news events of 1927. On May 20, 1927, both of the NBC networks covered the return of Charles Lindbergh to America from his trans-Atlantic flight, star announcer Graham McNamee doing the honors. Three months later, a combined hookup of 67 stations on the two networks presented the second DempseyTunney fight, broadcast by McNamee and NBC colleague Phillips Carlin. Radio historian Elizabeth McLeod has published a discussion of surviving NBC broadcast material from this era.[17]

Advertisement placed by the Enna Jettick Shoe Company promoting the appearance of Sir Harry Lauder on its NBC Blue program, December 1, 1929. Note that the text implies that the NBC Blue, NBC Orange (West Coast) and NBC Red networks were all participating in the broadcast.

A slightly later example of cooperation came on the evening of Sunday, December 1, 1929, when the famed "Laird of the Music Halls", Sir Harry Lauder, appeared on a coast-to-coast hookup that originated from KFI in Los Angeles (later an NBC Red station, but at this time part of NBC's West Coast "Orange Network"), but was distributed by WJZ, which, as noted, was the key station of the Blue Network; advertisements suggest that certain NBC Red stations, as well as stations in the Orange Network, supplemented the network. A description of this broadcast is contained in a 1930 pamphlet put out by the Enna Jettick Shoe Company;[18] Enna Jettick sponsored the first of Lauder's performances that night on its "Enna Jettick Melodies" show, which was followed later by another performance during the time ordinarily used by The Collier Hour.[19]

At least as late as January 1939, in spite of the fact that by this time NBC was seeking to differentiate the images of its NBC Red and NBC Blue networks (see below), it would still arrange for special, joint broadcasts, such as a special two-hour presentation of "The Magic Key of RCA" musical program (normally an NBC Blue program, sponsored by RCA's Victor records division) entitled "Salute to 1939."[20]

Blue Network function through the mid-1930s

[edit]

Ironically, even though the Blue Network generally was not given the more popular programs, it was the network that broadcast Amos 'n Andy at the height of its popularity in the early 1930s, when on average over half of the nation's radio audience would tune in to the show.[21] During the 1932–1933 season, Standard Oil of New Jersey (Esso) sponsored an unusual program, the Five-Star Theater, which each weeknight presented a show in a different format. The marquee show in this cycle was Flywheel, Shyster, and Flywheel, which starred Groucho Marx and Chico Marx. Considering the show's relatively early (7:30 p.m. ET) time slot, it did rather well in the ratings,[22] but it could not compete with the much stronger ratings produced by Esso's arch-rival Texaco, which sponsored Ed Wynn on NBC Red, and the show ended after one year.[23]

More commonly, the Blue Network would operate as a quasi-"farm team" for the Red Network, in terms of entertainment programs. Bob Hope (in 1935 and again in 1937), Jack Benny (in 1932), Fibber McGee and Molly (in 1935), and Information, Please! (in 1938) are all examples of shows that debuted on the Blue Network before eventually transitioning over to larger audiences on the Red Network.[24]

On occasion, shows would make brief stops at NBC Blue before moving elsewhere, such as the Lux Radio Theatre (1934–35) and Will Rogers' program (1933), both of which would move to CBS.

Advertisement[25] advertising the debut of the Lux Radio Theatre, which had a brief run on NBC Blue in 1934–35 before moving for a long run on CBS.

At some level, the Blue Network was known in the late 1920s and early 1930s for its children's programming. There are at least two volumes extant, from an Akron-based publishing house,[26] which are collections of stories which purport to have been part of Blue Network programs. A copy of one, in the collection of E.O. Costello, shows a cover with two children listening to a late 1920s-style radio, from which shimmering images of fairy-tale characters are emerging. Other than the title (and the radio on the cover), the precise nature of the ties to the Blue Network is not known; the book does not even make direct reference to the National Broadcasting Company. It can also be said that this is an indication that the Blue Network had a well-established identity of its own by 1929.[27]

Problems

[edit]

The descriptions of the material contained in the NBC History Files at the Library of Congress appear to indicate that at some level, there was discontent with the way NBC was managing the Blue Network vis-à-vis the Red Network. For example, one folder in the NBC History Files[28] contains a three-page letter dated June 28, 1934, from station WSYR in Syracuse, New York, which complains of the neglect of the Blue Network in favor of the Red Network. This point can said to be reinforced firstly by a memorandum dated September 18, 1935,[29] in which the Blue complained about its lack of access to broadcasts of the World Series, and secondly by a letter dated shortly after that, on October 5, 1935,[30] which is a communication from Hearst Radio complaining that Amos 'n Andy and the Al Pearce programs had been moved from the Blue Network to the Red Network, and complaining in general about the weakness of the Blue's programming. Indeed, the NBC History Files contain[31] a February 1937 in-house memorandum so caustic of the performance of the Blue Network that the author's name was redacted from the document.

A significant issue with the NBC Blue Network may have been its size. It started, in January 1927, with 7 stations, had grown to 17 by the end of 1929, but still had only 33 stations by 1937.[32] This would have made it significantly smaller than its rivals. In 1938, Mutual had 107 affiliates, and CBS had 114; the Blue Network, by contrast, was not able to blanket the United States when NBC Red sold out its time, with the result that during 1937–1938, the Blue Network's revenues were generally falling, while NBC Red's increased.[33] McLeod has noted that as of 1938, NBC had 23 stations in its core "Basic Red" group, and 24 in its "Basic Blue" group, with 107 stations that could be Red or Blue depending on the needs of a sponsor;[34] the relative ratings (and thus revenues) for NBC Red programs versus NBC Blue counterparts suggests that sponsors chose to use Red more often than Blue.

Image

[edit]

Perhaps more in line with the common perception of the Blue Network as a smaller, but more high-brow and public affairs-centered network[35] was that it was the original home of the NBC Symphony Orchestra broadcasts, led by Maestro Arturo Toscanini.[36] In a similar vein, one of the Blue Network's longest running programs was America's Town Meeting of the Air, a current-affairs discussion program.[37] Both Lowell Thomas and Walter Winchell's news programs were also broadcast over the Blue Network. Both of these shows were the Blue's highest rated programs in the late 1930s and early 1940s.[38] In an interesting variation on the talent shows hosted by Major Bowes, the Sherwin-Williams paint company sponsored the Metropolitan Opera Auditions of the Air for a number of years on Sunday afternoons in the 1930s and 1940s, in which singers competed for a chance to win contracts with the famed opera troupe.[39] The National Farm and Home Hour, a show backed for many years by the U.S. Department of Agriculture, was one of the Blue Network's standout daytime programs, and would be a part of its lineup from 1929 until March 1945, when the program shifted to NBC.[40]

Along with the NBC Symphony Orchestra broadcasts, the Metropolitan Opera radio broadcasts were part of the "crown jewels" of NBC Blue. A sober, dignified pamphlet issued by the network in 1937[41] stated that the broadcasts were under RCA sponsorship, and "[t]hrough the medium of nationwide NBC Network broadcasting, Grand Opera has been given to the entire nation. No longer is it reserved for the privileged few – now even the most isolated listeners throughout the United States are able to enjoy the world's finest music at their own firesides. The National Broadcasting Company (...) is proud to be the means of bringing the Metropolitan Opera to American radio listeners." The pamphlet notes that 78 stations broadcast these opera performances in 1937, and that reception for the program was "nationwide", something moderately unusual for an NBC Blue broadcast.

Radio historian Elizabeth McLeod has suggested, aside from a brief period where NBC Red and NBC Blue had different chime-sequences in the late 1920s and early 1930s, the two networks were *not* differentiated for many years, which would certainly be consistent with the roster of shows described above. She points out, with some justice, that NBC Red also broadcast a number of high-brow programs such as The Voice of Firestone, The Atwater Kent Hour, and the Cities Service Concerts. Furthermore, she points out that until the 1936–1937 period, the "back office" support for the networks was the same,[42] and often stations would shift from one network to another, depending on sponsor needs.[43] It was only when the Federal Communications Commission began investigating network practices, McLeod believes, that efforts were made by RCA to differentiate the two networks, and to fully position NBC Blue as a high-brow/public affairs network. (In the same light, it has been suggested that the congressional pressure was the real reason the NBC Symphony Orchestra was created.)[44]

The NBC History Files at the Library of Congress lend support to the notion that NBC was gradually groping for a way to differentiate the Red Network from the Blue Network. For example, they contain a confidential memorandum, dated May 13, 1936, which sets forth a network policy against mixing the Red and Blue network stations.[45] (Compare and contrast this with the way the Harry Lauder broadcast of 1929 was handled, above.) There also exists an October 1938 sales force memorandum, which contains talking points on how to differentiate the Blue Network from the Red Network and CBS.[46] Even as far back as December 1932, NBC had set forth a policy banning specific references not only to CBS, but even to the Red Network.[47]

Of note is the fact that NBC began to step up efforts to expand the network; while it had 33 stations in 1937, this total had nearly tripled by January 1941, when the network had 92 stations coast to coast.[32]

These efforts to expand the network are evidenced by an NBC publication in late 1936, Great and Growing Greater, which described efforts to increase both the size and quality of Blue Network stations.[48] Among the improvements cited and proposed were increasing the broadcast power of WJZ and KDKA to 50,000 watts each, adding new stations to the group such as WEAN, WICC and WEBR, adding a Pacific Coast network (with KGO, KECA, KFSD, KEX, KJR and KGA) and expanding the daytime power of such stations as KOIL, KWK and KSO. This ad campaign, in a booklet tipped into the book, also showed a lengthy list of sponsors that had purchased Blue Network time. As the book states: "All of these additions and improvements are daily increasing the effectiveness of the NBC Blue Network. All contribute considerably to the listener's pleasure and to the advertiser's sales results."

In the months leading up to the January 1942 spinoff of the Blue Network, NBC undertook vigorous steps to create separate brand images for the Red and Blue Networks. To a certain extent, this had been going on since at least the summer of 1939, when Time magazine indicated that NBC was undertaking an extensive build-up of NBC Blue.[49] In both the fall of 1937, and the fall of 1941, NBC would specifically identify a program as being broadcast on the "Red Network of the National Broadcasting Company", and at least in the fall of 1941, would have a similar tag for the Blue Network.[50] An example of this buildup comes in "Alice in Sponsor-Land", a publication put out by RCA some time in mid-1941[51] to market that network's shows.[52] This book focuses squarely on the Red Network, describing its entertainment programming, without any reference to the Blue Network.[53] Above the lineup of stations[54] in the back of the volume is the tag-line: "This is the Red Network of the National Broadcasting Company." In addition, throughout the book are slogans such as "Any time is Good Time on NBC Red!" This book, in part, demonstrates exactly how NBC differentiated the Red Network from the Blue Network in the fall of 1941, when, as noted, the Blue Network was still a part of NBC.

Programming, 1935–1941

[edit]

What follows are some examples of the programming on NBC Blue that illustrate a gradual shift in tone.

The official website for Helen Hayes[55] shows a number of programs that she did for NBC Blue during this time, including a Eugene O'Neill play cycle in August 1937, two different dramatic series of her own in 1935–1936 (one sponsored by General Foods), and an appearance on a Blue series in 1940, one which brought famous people who would explain why a particular book has been their favorite.

The "preview" section of the November 28, 1938, edition of Time[56] gives some idea of the kind of programming that the Blue Network carried. On Friday, November 25 at 4 p.m., it carried a speech by then-Secretary of State Cordell Hull. Later that night, it carried the welterweight championship fight from Madison Square Garden, followed by Wagnerian opera from Chicago's Lyric Opera. Saturday, November 26 shows that the Blue carried both the Army–Navy football game and the NBC Symphony Orchestra. The Town Meeting of the Air on Thursday night carried a debate among economists as to whether an economic plan for world peace was possible.

For one season in the early 1940s, a high-profile sponsored program on the Blue was The Cavalcade of America, a show dramatizing historical events which was sponsored by DuPont. The show, which debuted in 1935 on CBS and moved to the Blue in January 1940,[57] was created at a time when the firm was under attack for being, in effect, a "merchant of death", and this show, which focused on American historical figures, was one way DuPont tried to burnish its image.[58] Certainly, the show had high production values, as can be witnessed by its use of Raymond Massey for a show in February 1940 on Abraham Lincoln, as described in the February 26, 1940, issue of Time.[59] It was also known for the use of university professors to vet the historical accuracy of the stories, as well as scripts by future Pulitzer Prize-winner Arthur Miller.[60] (This show would eventually stay with NBC Red and NBC, starting in 1941, and the network would continue to broadcast the show even into the age of television).[58]

An interesting perspective can be seen on one of the most dramatic days in the history of network radio. On the morning of the Japanese attack on Pearl Harbor on December 7, 1941, while the first attack wave was over Oahu, NBC Blue was broadcasting The Inspector General, as part of its Great Plays program, while NBC Red was broadcasting a program with popular bandleader Sammy Kaye. At 4 p.m., ET, the Blue's broadcasts of the National Vespers was interrupted by various news reports. Later in the evening, at 6:30 p.m. and 6:45 p.m., Drew Pearson's and Eleanor Roosevelt's regular broadcasts are heard, followed at 7 p.m. by a news roundup show that competed with Jack Benny, and later on Bible Week opposite the Chase and Sanborn Hour with Edgar Bergen. (The Blue did have the popular Inner Sanctum mystery anthology series later that night at 8:30, followed in turn by its number one show with Walter Winchell.) Lastly, of interest to those who may recall the satiric references in Warner Bros. cartoons of the era, at 10 p.m., the Blue carried The Goodwill Hour with John J. Anthony, dispensing advice to those who sought it, and who presumably were not tuned into Phil Spitalny's orchestra on the Red network.[61]

Proposed sale

[edit]

During the late 1930s, NBC seriously considered disposing of the Blue Network on its own initiative. There are substantial materials contained in the NBC History Files at the Library of Congress[62] illustrating this point. The fact that David Sarnoff, the head of RCA, was involved in these discussions indicates the high level at which this proposal was given consideration. A plain reading of the finding guide at the Library of Congress on the NBC History Files does not disclose the precise nature of these discussions, though the fact that these discussions existed is of record. In 1943, after the Blue Network had been spun off (but before its eventual sale), a promotional publication noted that:

"As far back as 1932, a group of executives of the National Broadcasting Company conceived the idea that The Blue Network could progress faster and serve its stations, its advertisers and the listening public much better if, instead of being a part of NBC it were to become an independent network."[63]

Divestiture, 1940–1943

[edit]

Initial moves by the FCC

[edit]

During the 1930s, accusations were leveled at both NBC and CBS, in part by their rival Mutual, that the two senior network systems engaged in a series of anticompetitive activities, by locking up talent through in-house talent bureaus, and tightly tying together the system of affiliated stations through onerous contracts.

In May 1940, after a three-year investigation, the Federal Communications Commission (which had had oversight over radio broadcasting since 1934) issued a scathing report (the "Report on Chain Broadcasting") attacking the affiliation policies of NBC and CBS, as well as the talent booking agency practices. The report proposed limiting each network to one affiliated station per city, which would have had a direct impact on NBC's dual-network ownership.[64] In May 1941, the FCC went a step further and issued formal rules to break up what it perceived to be monopolies in radio; one of these rules specifically barred a network from operating more than one hookup, which would have been aimed directly at NBC's ownership of its two networks, in a manner even more explicit than the June 1940 report.[65]

Litigation against NBC

[edit]

Subsequent congressional hearings in the fall of 1941 resulted in the FCC watering down the rules, but the reprieve was short-lived, as the antitrust division of the Department of Justice, on December 31, 1941, filed an antitrust action against NBC and CBS, seeking to break up the networks' methods of operation. Mutual, at the same time, filed an antitrust suit of its own, in the amount of $10.275 million, according to the January 12, 1942, edition of Time.[66]

This account by Time[66] describes at least one of the accusations leveled against NBC by Mutual, from an affidavit by Mutual's general manager. In the fall of 1941, Mutual debuted a comedy-variety series sponsored by Ballantine Ale, called Three Ring Time, starring Milton Berle and Charles Laughton.[67] The show was set to debut on a 77-station network, but 14 of these stations were under contract to NBC, which had the power to exercise options on the most desirable time, in cities where there was limited competition. NBC eventually exercised options for six of these stations, with the result that Three Ring Time was being carried simultaneously on NBC Blue and Mutual.

While the antitrust suits were pending, NBC and CBS had appealed to the courts regarding the ability of the FCC to regulate the operations of radio networks.[68] While these appeals were in progress, NBC started the process of formally separating the operations of the Red Network and the Blue Network, a process which had begun in 1939 with the formation of a separate sales department for the Blue Network and which continued into 1940 and 1941 with the formation of other departments for the Blue Network.[63] NBC began to specifically identify the networks, contrary to its general practice, and began to divide personnel and facilities; eventually, it formed a separate corporate entity for the Blue Network on January 8, 1942, "Blue Network Company, Inc."[69] From this date on, while NBC still maintained ownership of the Blue Network, it was for most purposes an entirely separate network. NBC Red at this point became known as simply NBC.[70]

This 1944 advertisement for KATE in Albert Lea, Minnesota,[71] while it dates from after the sale by NBC of the Blue Network, shows how the Blue Network continued to have access to NBC facilities; in this case, the famed radio studios at Rockefeller Center in New York City.

In June 1942, The United States Supreme Court upheld the jurisdiction of the FCC over the issuance of rules relating to chain broadcasting. While the FCC litigation continued in the wake of this ruling, the public and private antitrust litigation was held in abeyance.[72]

On May 10, 1943, the Supreme Court (National Broadcasting Co. v. United States, 319 U.S. 190) upheld the right of the FCC to regulate practically everything that was radio, by sustaining the jurisdiction of the FCC to regulate the contractual relations of the major networks with affiliated stations.[73] Efforts in late 1943 before the Senate Interstate Commerce Committee to obtain legislation to, in effect, reverse the decision went nowhere.

Sale

[edit]

The January 11, 1943, edition of Time states that seven investment houses, three insurance companies, two manufacturers, a daily newspaper, and an industrialist had all taken serious looks at purchasing the network.[74] However, with the ruling from the Supreme Court, NBC was now spurred to take vigorous action to sell the Blue Network. The bidding came down to three groups, with an initial bid of $6 million, which was raised in sequence by rivals to $6.5 and then $7 million. In late July 1943, the investment banking firm of Dillon, Read & Co. made a bid of $7.8 million.[75]

On July 30, 1943, just over two months after the court's ruling, RCA announced the sale of the network to American Broadcasting System, Inc., a firm controlled by Edward J. Noble, a former undersecretary of commerce who was better known as the chairman of Life Savers Corp. The price was announced as $8 million.[76] This was followed by a petition to the FCC to approve the sale, which was filed on August 13.[77]

FCC hearings

[edit]

One of the significant issues surrounding the sale of the Blue Network involved the network's practices regarding "controversial" topics and proponents. The network, citing the code of the National Association of Broadcasters, declined to sell time to labor organizations, cooperatives, and other organizations advocating "controversial topics", but did give them free air time, provided there was an opportunity for the other side to be heard. On August 27, 1943, the Congress of Industrial Organizations filed a brief in a petition to intervene in the FCC proceedings on the network sale.[78] The CIO complained that the NAB code regarding "controversial" broadcasts inhibited its ability to buy airtime. While the FCC denied the CIO's petition to intervene, it did invite the CIO to give testimony in the hearings.[79]

At the hearings held on September 10, 1943, FCC Chairman James L. Fly roundly denounced the policy of the Blue Network in refusing to sell airtime, but granting air time for free, to proponents of controversial broadcasts. He colorfully described the policy as chasing would-be purchasers from the front of the shop, but "directing them to the back door for a handout." Mark Woods, the head of the Blue Network, defended the policy, stating that it was in compliance with the NAB code.[80] When Edward J. Noble testified at the hearings held on September 20, 1943, he was questioned closely by Chairman Fly as to the policies regarding the refusal to sell air time to labor organizations, cooperatives and other special interest groups.[81] Noble was directed by Chairman Fly at this hearing to submit a statement as to what the policy would be of the Blue Network in terms of "the expansion of the mechanisms of free speech."[81] On October 3, 1943, Noble released a letter to the FCC in which it was stated that the Blue Network would meet "with an open mind" all requests for broadcasting time, "considering each on the merits", and excluding none on the basis of ideas or personality.[81] Certainly, not all were pleased by Chairman Fly's stance. Columnist David Lawrence, in his October 7, 1943, column, thought that the FCC had overstepped its authority in attempting to force the Blue Network to change its policies regarding the sale of airtime.[82]

Noble's written response seems to have been sufficient. The sale was approved by the FCC on October 12, 1943.[83] Noble was forced to divest himself of New York station WMCA, which he had owned since 1940, but his American Broadcasting System, Inc., the entity formed to be the parent of the Blue Network, acquired WJZ, additional stations in Chicago and San Francisco, as well as land-line leases, certain studio facilities and leased studio facilities, and the affiliation system.[84]

Antitrust conclusion

[edit]
Jessie Royce Landis (l) and Celeste Holm (r) pose with a Blue Network microphone in this 1943 publicity still for the show The House on Q Street. Collection of E.O. Costello.[85]

Following the sale, the Department of Justice dropped its antitrust proceedings against NBC on October 17, 1943,[86] having previously dropped proceedings against CBS on October 11, and the federal courts, upon its motion, dismissed Mutual's antitrust claims against CBS and NBC.[87]

Changes: 1943–1945

[edit]

In the April 21, 1947, issue of Time,[88] Mark Woods called the Blue Network of 1942 (that is, just before the sale) "a dump." The article describes the then 116-station network as the home of cast-off speeches and classical music, which had only generated $14 million in revenue. It could, perhaps, be argued that Woods was denigrating the state of the Blue Network at that time, to contrast with the relative success of the network later in the 1940s; this is possible in light of the fact that the Blue Network had been profitable in 1942.[89] Woods and the rest of the management team, after the sale to Noble, began to take steps to make the Blue Network more competitive with NBC and CBS.

Finances and ownership

[edit]

An early step was to obtain a deep-pocketed backer. Noble, on December 28, 1943, sold a 12.5% stake to Time Inc.,[90] and a similar stake to advertising executive Chester J. LaRoche, for $500,000 each. Smaller stakes were taken by Blue Network executives Mark Woods (president) and Edgar Kobak (executive vice-president, who would the next year leave the Blue for Mutual).[91]

Advertisement[92] promoting a broadcast of the long-running NBC Blue, Blue Network and ABC public affairs program, "Town Meeting of the Air." Note that even at this late date, in 1947 (i.e. 20 months after the official change), ABC is still using the Blue Network tag for certain promotional purposes.

Programming

[edit]

During the 1943–1945 period, the Blue Network used many of the NBC broadcasting facilities, including the Radio City facilities in New York (see the KATE ad, above), as well as studio space in Los Angeles. The back of the ticket for "Fun Valley", a show starring veteran comedian Al Pearce, sponsored by Dr Pepper and broadcast on Sunday afternoons in 1944, makes reference to both Blue Network Company, Inc. and the National Broadcasting Company, Inc. in terms of the rules and regulations audience members had to obey.[93]

Of obvious import were steps taken to preserve the best programming the network had, and make improvements; these were happening in the period immediately prior to, and following, the sale of the network. While the Blue Network did lose a few programs to NBC, such as Quiz Kids and Duffy's Tavern (more shows that debuted or had a previous run on the Blue; see Lackmann, op. cit.) and the NBC Symphony Orchestra (Lackmann, op. cit.), it did retain one highly rated show, the Jergens Journal with Walter Winchell, which managed to compete successfully with NBC's powerhouse Sunday night lineup (it was the 11th-ranked program for all of 1943–1944, and Blue's only program in the top 20).[94] The Blue Network also retained the rights to broadcast the Metropolitan Opera radio broadcasts; Milton Cross was the host for NBC, Blue, ABC, CBS, and the opera's own broadcasts from 1931 through 1975. This was in spite of the fact that NBC did not want to assign the rights to either the Town Meeting of the Air or the Metropolitan Opera broadcasts to the Blue Network.[95]

In an interview with Time published on January 11, 1943, Woods noted that the Blue Network was seeking to differentiate itself from NBC and CBS by the aggressive use of transcriptions, contrary to the practice of the larger networks.[74] This would have its full fruition when Bing Crosby started transcribing his prime-time shows in 1946.

In certain respects, the Blue made attempts to grab the spotlight with unusual broadcasts. On December 25, 1942, the Coca-Cola Company sponsored an all-day broadcast on the network, a "Victory Parade's Christmas Party of Spotlight Bands".[96] The hiring, in 1943, of noted bandleader Paul Rodgers as Director of Music was an attempt by the network, in its own words, to strengthen the entire musical schedule, as well as obtain a prominent figure.[97] The "Metropolitan Auditions of the Air", discussed above, had moved to the Blue Network by 1943 as well, joining the Metropolitan Opera broadcasts and the Boston Symphony Orchestra.[98]

1944 souvenir booklet for the Blue Network audience participation show Ladies Be Seated, which would continue to have a multi-year run on ABC radio. This show was also one of the first programs to be televised by ABC. A script survives from a February 25, 1945, local broadcast over WRGB, the Schenectady, New York television station of General Electric, hosted by Johnny Olson. The network is referred to in the script as being "The Blue Network of the American Broadcasting Company."[99]

News continued to be a priority for the network; indeed, Raymond Swing would win a Peabody Award for the network in 1944 for his news commentary.[100] A 1943 promotional pamphlet listed Swing, Walter Winchell, Martin Agronsky, Drew Pearson, Lowell Thomas and Dorothy Thompson, among others, as part of "the most impressive roster of news analysts and commentators on the air today."[101] Newsman George Hicks was on a landing craft heading to the Normandy invasion beaches on D-Day when it was strafed by enemy planes, the sound of the combat being broadcast.[102] The network did have some difficulty with its news commentators during the war, however. The February 22, 1943, edition of Time notes that Woods had to clamp down on both Walter Winchell and Drew Pearson for over-aggressive name calling in their broadcasts, much to their dismay.[103]

Blue Network Programs

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Several programs can be cited to show how the Blue Network was striving to reach beyond its previous reputation, and compete head-on with CBS and NBC as a stand-alone network.

One ambitious broadcast, copies of which are generally available to collectors of old-time radio broadcasts, was a special two-hour program broadcast on Christmas Day, 1944. Entitled "Christmas on the Blue", the show was emceed by Gracie Fields, and featured, among other stars, Joe E. Brown, The Andrews Sisters, Ed Wynn, Paul Whiteman and others. The show also featured broadcasts of overseas servicemen sending greetings and well wishes to their loved ones at home, something unusual for the era.

One of the pairings on this special program involved Wendell Niles, a long-time announcer on many radio shows, including Bob Hope's. The Blue Network gave him and partner Don Prindle a comedy series, Niles and Prindle, which is referenced in the special as being scheduled for a debut the following month. It was said to involve two friends "who argued about everything", and had a brief run in 1945.[104] It was certainly unusual for the Blue Network to attempt to convert a long-time announcer into a featured comedy star, and in this sense, "Niles and Prindle", if not unique (given that Graham McNamee was the "Perfect Foil" to Ed Wynn), it must be said to be at least quite singular.

Of interest to animation fans was a show called Nitwit Court, which sought to do to John J. Anthony's The Goodwill Hour what It Pays to Be Ignorant did to Information, Please!. Host Ransom Sherman would pose problems to a jury consisting of Arthur Q. Bryan, as "Willow", a man with a lisp, Mel Blanc, as "Hornblower", a fumbling motorboat owner, and Sara Berner as "Bubbles Lowbridge", a not terribly bright woman (all three of whom are most commonly associated with Warner Bros.' Looney Tunes and Merrie Melodies cartoon series).[105]

Affiliate growth

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Matchbooks advertising the Blue Network affiliated stations in Indianapolis and Cleveland, from between 1943 (when WJW joined the Blue Network) and 1945
Matchbook from WFCI/1420 (now defunct) at Pawtucket, Rhode Island

Strengthening the affiliate station list was a matter of importance to the network. While the network had 116 stations in January 1942 and 155 stations as of June 1943, this still meant that it could only offer to advertisers coverage of approximately 76% of the radio homes in the United States.[106] In this sense, the moves by the FCC to loosen the provisions of the contracts binding affiliated stations to networks helped the Blue Network. This allowed it to pick up a few additional stations in 1944, including (ironically) a few from the Mutual Broadcasting System.[107] This was one of its priorities, as the Blue Network had inherited smaller and less powerful stations than NBC and CBS.

Rebranding

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Finally, a major priority of the Blue Network was to form a new identity, one that would mark a break with the past. In December 1944, the FCC approved the transfer of The Blue Network, Inc.'s broadcast licenses to American Broadcasting Company.[108] Beginning on January 22, 1945, the network's opening and closing announcements changed to "The Blue Network of the American Broadcasting Company." Starting February 18, the same wording was instituted as the network outcue for station breaks.[109] On June 15, 1945, the Blue Network formally changed its name to the American Broadcasting Company.[110][111] They were not alone in desiring this catchy acronym.[112] Two prior claimants were bought out prior to June 1945,[113] and in negotiations with the Associated Broadcasting Corp. In December 1945, it acquired the rights to the name "ABC" from yet a third party.[114] From June 1945 forward, the entity has been known generally as the American Broadcasting Company, and reference should be made to that entry for its subsequent history.

The souvenir program for the Maurice B. Sachs Amateur Hour broadcast of Sunday, September 30, 1945, refers to the broadcast as coming from "Blue Network Studio A."[115] Even into 1947, in some markets, ABC would promote its shows with the tag-line "It's a Blue Network Program!"[116]

Television

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By June 1945, commercial television in the United States had been frozen, owing to the lower level of priorities given to it as compared to war work. Furthermore, ABC was generally slow to move into television broadcasting. It did win approval to build five television stations; the first, WJZ-TV in New York was completed in the summer of 1948. WJZ-TV (whose callsign would later be transferred to a new ABC affiliate — and current CBS owned-and-operated station — in Baltimore) was followed by stations in Chicago and Detroit later in 1948; and San Francisco and Los Angeles during 1949–all five stations were assigned to broadcast on channel 7. (Four of these five stations are still owned and operated by ABC, with WXYZ-TV now owned by the E.W. Scripps Company.) Until those stations were built, ABC had to lease time and studio facilities from other stations including DuMont network New York flagship WABD, as well as other stations in Philadelphia and Washington which eventually helped form the core of the ABC television network.[117] It might be supposed that the Blue Network never existed in television, but as noted above, the Blue Network did make at least a few known forays into television prior to the June 1945 name change. For example, the Blue Network applied for a construction permit for a TV station in the upper VHF band, but all such applications were shelved during the war years. Experiments were also conducted by the Blue Network in television program production before it permanently became ABC and formally opened a network under the ABC name in 1948. The script for a February 25, 1945, broadcast of Ladies Be Seated, which was a relatively popular audience-participation/stunt game show on Blue Network radio, still exists, and is reprinted in full in Ritchie.[118] It is, in fact, the script for the first broadcast.[119] It was hosted by Johnny Olson, who would later become the long-running announcer on most of CBS's Goodson-Todman-produced game shows, most notably Match Game and The Price Is Right. Technically, this was not a network broadcast, as it was broadcast locally on WRGB, the General Electric television station in Schenectady, New York. However, the opening title card, according to the script, was for "The Blue Network of the American Broadcasting Company." No kinescope or video transfer of this broadcast is known to exist.

Blue Network stations

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As noted above, during the 1930s and 1940s, the Blue Network was divided into groups of stations. The core group of stations was known as "Basic Blue", and covered the Northeast United States/New England and portions of the Upper Midwest, around the Great Lakes area. The Southern Blue Network covered the Deep South, the Mountain Blue Group the Mountain states, the Pacific Coast Blue Network the Pacific Coast states, and the Southwestern Blue Group the Oklahoma-Texas region.

A pamphlet published by the American Rolling Mill Co. in connection with a radio talk on "The Miracle of Steel" given on the Blue Network on April 9, 1939, has a listing of the Blue Network stations participating in this broadcast.[120] They are as follows:

Other Blue Network basic stations in 1939 were WABY (Albany, New York); WJTN (Jamestown, New York); WRTD (Richmond, Virginia); WLEU (Erie, Pennsylvania); CFCF (Montreal, Quebec) and WMFF in Plattsburgh, New York.[121]

See also

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References

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Notes

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
The Blue Network was an American radio network that operated from 1927 to 1945, initially as the secondary chain of the before its forced divestiture amid antitrust scrutiny. Established alongside NBC's primary Red Network to distribute programming via affiliated stations, it emphasized sustaining features—non-sponsored public service content like educational talks and cultural events—contrasting with the Red Network's commercial entertainment focus. In response to (FCC) regulations prohibiting ownership of multiple networks, NBC separated the Blue Network in 1942 by forming the independent Blue Network Company around its flagship station WJZ. The network's divestiture stemmed from the FCC's 1941 Chain Broadcasting Regulations, enacted after investigations revealed NBC's dual-network structure stifled competition by limiting affiliates' options and pressuring stations through exclusive contracts. NBC sold the Blue Network on October 12, 1943, to entrepreneur —proprietor of candy—for $8 million, marking a pivotal shift toward a more competitive landscape. Under Noble's ownership, the network expanded sponsored programming and introduced hits like The FBI in Peace and War, while navigating postwar challenges including the rise of television; it rebranded as the (ABC) in 1945, evolving into a major multimedia entity. This transition not only democratized radio access but also highlighted regulatory interventions' role in curbing media monopolies, though critics noted the Blue's initial undercapitalization limited its early rivalry with CBS and NBC Red.

Origins and Early Operations (1920s–1934)

Precursors in Radio Broadcasting

The origins of the Blue Network trace to early experiments in chain broadcasting during the 1920s, when radio stations began linking via telephone lines to simulcast programs across regions. The Radio Corporation of America (RCA), seeking to promote receiver sales, acquired station WJZ from Westinghouse Electric in Newark, New Jersey, in May 1923, relocating it to New York City and using it as a platform for originated content including news, music, and speeches. RCA organized informal networks around WJZ, connecting it to stations like WRC in Washington, D.C., via Western Union transmission lines as early as 1923, enabling shared programming that foreshadowed structured national distribution. These WJZ-led efforts paralleled AT&T's toll broadcasting innovations at WEAF, which began charging for line usage in and linked to distant stations like WMAF in by 1923, but RCA's WJZ chain emphasized non-commercial sustaining features such as educational talks and cultural events to differentiate from commercial fare. By 1926, prior to the formal creation of the , WJZ had established affiliations with approximately a dozen stations, forming a loose "Radio Group" that provided the backbone for what would become the Blue Network. Upon NBC's formation on November 15, 1926, under RCA's ownership, the company integrated the acquired WEAF chain as its primary commercial outlet while preserving the WJZ group for complementary purposes. On January 1, 1927, officially launched the Blue Network with WJZ as its flagship, initially comprising 18 stations focused on and unsponsored content to complement the sponsored Red Network. This division reflected early market realities, where limited advertising revenue necessitated separating high-profile entertainment from sustaining programs, setting the stage for the Blue's distinct operational identity.

Formation as NBC's Complementary Network

The National Broadcasting Company (), formed by the Radio Corporation of America (RCA) in 1926 through the acquisition of AT&T's WEAF station and its associated chain of affiliates, initially launched the Red Network on November 15, 1926, with programming distributed to approximately 20 stations. To expand its reach and utilize the separate WJZ chain acquired from Westinghouse, NBC established the Blue Network as a complementary service on January 1, 1927, originating from WJZ in New York and linking it to around 26 stations primarily in the East and Midwest. This dual-network structure, denoted by colored lines on AT&T's interconnection diagrams, enabled NBC to operate parallel chains without direct competition for the same affiliates. The Blue Network was designed to complement the by emphasizing sustaining programs, including news, cultural content such as concerts and dramas, and broadcasts, in contrast to the Red's focus on commercially sponsored entertainment. This division allowed NBC to offer advertisers varied options: high-revenue popular shows on the Red, while reserving the Blue for non-commercial or lower-priority content that built audience loyalty and fulfilled regulatory expectations for educational programming. Affiliates could choose between networks based on programming fit, fostering internal competition that spurred innovation, though both shared NBC's technical infrastructure via telephone lines. By 1928, the Blue Network had extended to transcontinental coverage, incorporating stations and growing its affiliate base to support diverse formats like the launch of the serial in 1929, which demonstrated its capacity for popular appeal despite its initial sustaining emphasis. This formation solidified NBC's dominance in early radio networking, with the Blue serving as a flexible counterpart to the , enabling the company to capture a broader amid rapid industry expansion in the late .

Initial Programming and Affiliate Building

The Blue Network initiated regular operations in early 1927, shortly after 's inaugural broadcast on November 15, 1926, with WJZ in New York functioning as its flagship station and originating point for networked feeds. Initial programming emphasized sustaining content—unsponsored broadcasts funded by itself—featuring classical and semi-classical music concerts, live dramatic sketches, and educational segments designed to appeal to audiences uninterested in commercial interruptions prevalent on the Red Network. This approach allowed the Blue Network to offer consistent, high-production-value filler for affiliates' schedules, including early examples like sponsored variety hours that transitioned into broader cultural fare by late 1927. Affiliate building commenced with an initial roster of approximately 10 to 26 stations, primarily in the Northeast and Midwest, linked through leased telephone lines for simultaneous transmission from NBC's New York studios. These early affiliates, drawn from pre-existing regional chains around WJZ, received programming via dedicated control centers that managed cueing and volume for synchronized airing, enabling rapid signal distribution despite technological limitations like static-prone lines. NBC recruited additional stations by demonstrating the value of free, polished sustaining shows, which helped smaller outlets compete with local content and attracted owners wary of sponsorship risks during radio's nascent commercialization phase. By January 1928, one year into regular daily service, the Blue Network contributed to NBC's overall affiliate count reaching 48 stations, with eight stations dual-affiliated across both networks to maximize coverage efficiency. Growth accelerated through proactive outreach, including promotional tours and for line installations, expanding the Blue's footprint while prioritizing clear-channel outlets for reliable . This foundational expansion laid the groundwork for the network's role in delivering non-commercial staples, such as early dramatic anthologies by 1930, reinforcing its identity as NBC's venue for public-interest amid rising advertiser dominance elsewhere.

Mature Operations Under NBC (1935–1941)

Synergies and Distinctions from the Red Network

The NBC Red and Blue Networks operated synergistically as complementary divisions of the National Broadcasting Company, sharing centralized facilities in , including studios and transmission infrastructure, which enabled efficient resource allocation and cost savings in production and distribution. This integrated structure allowed to offer advertisers flexible scheduling options across both networks, avoiding internal conflicts over prime-time slots while expanding overall coverage to a combined affiliate base exceeding 100 stations by the late 1930s. Affiliates frequently carried programming from either network, optimizing local lineups and leveraging 's unified promotional efforts to build national audience loyalty. Distinctions arose primarily in programming philosophy and commercial orientation, with the Red Network prioritizing high-rated, sponsor-driven entertainment such as comedies and variety shows, exemplified by hits like , which drew massive audiences and ad revenue. In contrast, the Blue Network emphasized sustaining programs—unsponsored content funded by —including cultural offerings like broadcasts, educational talks, and dramatic features, reflecting its origins in the Westinghouse WJZ chain's experimental bent. By 1935, the Red Network had established dominance with more lucrative affiliations, while Blue lagged in popularity but served as a testing ground for innovative formats less suited to Red's commercial focus. These operational differences underscored NBC's strategy to segment the market: Red for mass-appeal profitability and for prestige and , though 's lesser commercial success prompted internal shifts toward more by the early 1940s. The dual setup, while efficient, later fueled antitrust scrutiny over potential monopolistic practices in network control.

Key Programming Developments

The Blue Network's programming from 1935 to 1941 emphasized cultural prestige, educational content, and public service alongside serialized entertainment, contrasting with the Red Network's commercial blockbusters. This approach included sustaining programs like broadcasts and news commentaries, which bolstered NBC's overall image while fostering original hits that sometimes migrated to . A pivotal debut occurred on April 16, 1935, with the situation comedy , starring Jim and Marian Jordan, which aired initially on Blue and quickly gained popularity for its domestic humor before transferring to Red in 1939. The network sustained its weekday serialized dramas, such as , Vic and Sade, Lum 'n' Abner, Clara Lu and Em, and Betty and Bob, targeting homemakers with ongoing narratives. News coverage featured Lowell Thomas's sponsored newscasts, broadcast five nights weekly since their Blue Network inception under in 1932, providing concise world affairs summaries. In May 1938, premiered on Blue, moderated by with expert panelists answering listener questions, marking an innovative intellectual quiz format that ran for years. Cultural programming advanced with the Music Appreciation Hour, designed for school audiences to cultivate classical music interest, and regular concerts, which aired on Blue to highlight symphonic excellence. Rural outreach included the National Farm and Home Hour, blending agriculture information and entertainment for agricultural communities. These initiatives supported affiliate expansion from 33 stations in to 92 by January , enabling wider reach and gradual commercialization to compete amid rising network rivalries.

Operational Challenges and Market Realities

The Blue Network, as NBC's secondary chain, contended with inherent resource disparities compared to the dominant Red Network, which prioritized high-profile sponsored programming and attracted stronger affiliates with greater market reach. Affiliates often favored Red affiliations for access to lucrative commercial shows, leaving Blue with smaller, less powerful stations and a narrower footprint; by the mid-1930s, Blue's network comprised fewer clear-channel outlets, limiting its national penetration and appeal. This internal competition strained Blue's operations, as shared NBC facilities and talent pools favored Red's evening slots, relegating Blue to daytime sustaining features that generated minimal direct revenue. Financially, Blue's reliance on unsponsored sustaining programs—intended for public service but yielding no sponsor fees—necessitated subsidies from NBC's overall profits, primarily derived from Red's commercial successes amid the Depression-era advertising recovery. Programming costs mounted without commensurate income, exacerbating operational inefficiencies; for instance, Blue's schedule emphasized , educational content, and experimental formats like America's Town Meeting of the Air (debuting October 1935), which drew limited audiences compared to Red's mass-appeal dramas and comedies. In response, NBC executives in the late pursued strategies to bolster Blue, including targeted affiliate recruitment and select commercial ventures, yet these efforts yielded modest gains against Red's entrenched popularity. Market dynamics amplified these hurdles, as expanded aggressively through exclusive talent contracts and hit shows, capturing significant share from NBC's combined networks by 1939, while the launch of Mutual introduced cooperative alternatives that appealed to independent stations wary of NBC's dual-chain dominance. Blue's smaller scale hindered bargaining power with advertisers and performers, fostering affiliate grievances over program quality and exclusivity clauses that restricted local flexibility. Overall, these realities underscored Blue's precarious position in a consolidating industry, where network scale and commercial viability determined survival, prompting internal deliberations by 1938–1939 on potential divestiture to refocus resources.

Antitrust Pressures and Forced Divestiture (1940–1943)

FCC Investigations and Regulatory Motivations

The Federal Communications Commission initiated formal investigations into chain broadcasting practices on March 18, 1938, through Order No. 37, which authorized an inquiry into the need for special regulations applicable to radio stations engaged in network operations. Public hearings commenced on November 14, 1938, and extended over 73 days until May 19, 1939, gathering testimony from network executives, station owners, advertisers, and other stakeholders on issues including network control over programming, exclusive affiliation contracts, and the concentration of ownership. These probes focused primarily on the dominant positions of the National Broadcasting Company (NBC) and Columbia Broadcasting System (CBS), which together controlled the majority of affiliated stations and a substantial portion of network revenue, with NBC's operation of both the Red and Blue networks exemplifying the risks of multiple ownership. The investigations revealed restrictive practices that the FCC deemed detrimental to competition and licensee autonomy, such as "option time" provisions allowing networks to reserve slots on affiliates in advance, exclusive affiliation agreements that barred stations from carrying programs from rival networks, and dual network ownership enabling cross-subsidization and preferential treatment. NBC's Blue Network, as the complementary service to the Red Network, benefited from shared facilities, talent, and promotional resources under , which the FCC argued suppressed independent programming and hindered new entrants by locking up affiliates and dollars. Data from the hearings indicated that and handled over 90 percent of evening network hours and derived the bulk of industry income from these arrangements, fostering a duopolistic structure that prioritized established networks over market dynamism. Regulatory motivations centered on safeguarding the public interest under the by promoting structural competition and diversity in broadcasting, rather than relying solely on antitrust enforcement. The FCC's May 2, 1941, Report on Chain Broadcasting recommended prohibiting any entity from owning or controlling more than one network—codified later as Regulation 12—explicitly to dismantle NBC's dual structure, as it perpetuated barriers to entry and limited program variety without evident consumer harm from current competition. Proponents viewed this as a prophylactic measure against monopoly tendencies in a spectrum-constrained medium, where network dominance could entrench power indefinitely; critics, including , contended that such intervention ignored vigorous program rivalry and advertiser choice, potentially distorting efficient . The FCC prioritized of contractual restraints over arguments of competition, aiming to enable fourth networks like the emerging to gain footing. The Federal Communications Commission (FCC) initiated investigations into chain broadcasting practices in 1938, culminating in the Report on Chain Broadcasting released on May 2, 1941, which identified anticompetitive abuses by NBC and CBS, including exclusive affiliation contracts that prevented stations from joining rival networks and "option time" clauses granting networks first refusal on prime evening hours. These findings prompted the FCC to adopt regulations on October 11, 1941, prohibiting dual network ownership by a single entity, exclusive affiliations, and option time arrangements, with the dual ownership ban explicitly targeting NBC's Red and Blue networks. NBC challenged the regulations as exceeding the FCC's statutory authority under the Communications Act of 1934, arguing that the Act did not empower the agency to regulate private contracts between networks and affiliates absent a direct threat to technical broadcasting standards. In National Broadcasting Co. v. United States, 319 U.S. 190 (1943), NBC sought an injunction against enforcement, but the U.S. District Court for the Southern District of New York upheld the rules in February 1943, prompting an appeal to the . The Court, in a 5-3 decision on May 10, 1943, affirmed the FCC's authority, ruling that the "public interest" standard in the Act encompassed economic and competitive aspects of broadcasting, as networks' practices restricted affiliates' independence and impeded new entrants. Justice Frankfurter's majority opinion rejected NBC's narrow interpretation of FCC powers, noting that the agency's mandate included fostering a diverse marketplace to serve listeners, while dissenting justices argued the regulations intruded on contractual freedoms without clear congressional intent. This ruling directly compelled NBC to divest one network, leading to the sale of the Blue Network by October 1943. Economically, the FCC contended that NBC's dominance—controlling over 60% of national affiliates and 97% of clear-channel evening network time—created barriers to entry for independent stations and potential competitors, inflating advertising rates for non-affiliates and reducing program diversity through homogenized content favoring national sponsors. The agency argued that divestiture would enhance competition, lower barriers for new networks, and promote local programming by freeing affiliates from network-imposed restrictions, citing data showing affiliates rejected fewer than 1% of option-time programs due to financial dependencies. NBC countered that its integrated operations generated economies of scale, enabling high-quality national programming that independents could not sustain, and that CBS's existence as a viable rival undermined monopoly claims; forced separation, per NBC, would fragment resources, raise costs, and diminish service to the public without proven consumer harm. The Supreme Court acknowledged these efficiencies but prioritized the FCC's empirical findings on restricted competition, holding that potential benefits did not override regulatory authority to curb abuses.

Sale Process and Outcomes

In response to the U.S. Supreme Court's affirmation of the Federal Communications Commission's chain broadcasting regulations on June 28, 1943, in National Broadcasting Co. v. United States, NBC accelerated efforts to divest the Blue Network to comply with antitrust mandates prohibiting ownership of multiple national networks. The divestiture process involved soliciting bids from potential buyers, with NBC emphasizing the network's operational viability—boasting over 200 affiliates and established programming—while navigating FCC scrutiny to ensure the purchaser lacked conflicting media interests. The sale agreement was reached with Edward J. Noble, chairman of Life Savers Corporation and owner of New York station WMCA, who offered $8 million in cash—a figure reflecting the network's tangible assets like contracts and goodwill but undervaluing its long-term potential amid wartime broadcasting constraints. Announced publicly on July 30, 1943, by NBC president David Sarnoff, the deal positioned Noble, a former Under-Secretary of Commerce with no prior national network ties, as a buyer likely to secure regulatory approval. The FCC endorsed the transaction on October 12, 1943, after verifying it promoted competition without entrenching monopolistic practices, marking the formal transfer of the Blue Network's operations, affiliates, and programming rights. The divestiture's outcomes included NBC's retention of the more profitable Red Network, which continued uninterrupted, while the Blue Network operated independently under Noble's ownership as the Blue Network Company. Financially, the $8 million proceeds bolstered RCA's (NBC's parent) wartime investments, though critics argued the forced sale undervalued the network given its revenue from sponsors like those funding shows such as The Blue Network's Information Please. Structurally, the transaction fostered a third major U.S. radio network, enhancing market competition; by 1945, under Noble's direction, it rebranded as the American Broadcasting Company (ABC), expanding into television and solidifying its role as a counterweight to NBC and CBS. This outcome validated FCC intervention in breaking vertical integration but highlighted debates over whether regulatory caps stifled efficiencies in network operations.

Debates on Government Intervention

The Federal Communications Commission's (FCC) 1941 Report on Chain Broadcasting, which precipitated the divestiture of the Blue Network, sparked debates over whether government intervention was warranted to address alleged monopolistic practices in radio networking. Proponents, including FCC Chairman James Lawrence Fly, argued that NBC's dual-network structure—encompassing both the commercially oriented Red Network and the sustaining-program-focused Blue Network—enabled undue control over affiliates through exclusive contracts, talent options, and affiliation restrictions, thereby stifling independent stations and program diversity. These practices, the FCC contended, violated the standard under the by foreclosing market entry for rival networks and limiting local programming autonomy, with empirical evidence from the report citing over 90% of evening dominated by and affiliates in major markets. Opponents, including NBC executives and dissenting FCC Commissioners like Homer Case and T.A.M. Craven, countered that the Blue and Red Networks operated complementarily rather than competitively, providing efficiencies in resource sharing and non-duplicative programming that benefited listeners without evidence of consumer harm or reduced in a rapidly expanding industry—radio stations grew from 612 in 1930 to over 900 by 1941 amid falling receiver prices and rising listenership. They criticized the FCC for ignoring internal synergies, such as Blue's focus on public service content, and for favoring independent stations' complaints over market realities, predicting that forced divestiture would erode sustaining programs and affiliate revenues without fostering true , as networks retained dominance over prime clear-channel stations. Broadcasters and free-market advocates further decried the intervention as regulatory overreach akin to , arguing that antitrust concerns were overstated absent proof of price gouging or output restriction, and that judicial deference to FCC findings in National Broadcasting Co. v. () prioritized bureaucratic judgment over economic analysis. Post-divestiture analyses have largely viewed the intervention's economic impact as marginal or counterproductive. The sale of the Blue Network to for $8 million in 1943 birthed the (ABC), introducing a third major network and modestly enhancing program options, such as ABC's emphasis on daytime serials. However, empirical reviews indicate persistent network dominance—NBC and CBS controlled over 75% of key transmission facilities and evening hours into the 1950s—with ABC and Mutual struggling for affiliates due to incumbents' station ownership advantages, suggesting the rules failed to equalize competition or significantly boost entry beyond the initial split. Later scholarship attributes greater competitive gains to subsequent deregulatory shifts, like cable expansions in the 1970s, rather than the chain rules, reinforcing critiques that government mandates disrupted vertical efficiencies without addressing root barriers like spectrum allocation. These debates underscore tensions between antitrust enforcement and industry self-regulation, with the Blue case exemplifying how regulatory actions, while upheld legally, yielded mixed results in causal terms for market vitality.

Transition to Independence and ABC Rebranding (1943–1945)

Financial Restructuring and Ownership Shifts

Following the Federal Communications Commission's approval on October 12, 1943, , founder of the candy company, completed the purchase of the Blue Network from the Radio Corporation of America for $8 million in cash. This transaction, negotiated amid competitive bidding that had escalated the price from an initial $6 million offer, marked the network's full independence from after operating under temporary separation since January 1942. To adhere to FCC rules barring ownership of multiple stations in the same market—particularly after acquiring Blue's flagship WJZ in New York—Noble divested his existing New York outlet, WMCA, to Nathan L. Straus Jr. on September 14, 1943, for an undisclosed sum that contributed to post-acquisition liquidity. This divestiture, a direct condition of the Blue Network deal, helped streamline assets and mitigate regulatory hurdles during the transition to standalone operations. On December 29, 1943, Noble sold minority stakes totaling 25%—12.5% each to and advertising executive Chester J. LaRoche—for $1 million combined ($500,000 per stake), providing immediate capital for network expansion and programming investments amid the challenges of competing without 's resources. These equity infusions supported financial stabilization, as the Blue Network faced revenue pressures from its smaller affiliate base and less established advertiser ties compared to the retained NBC Red Network. By October 19, 1945, Noble reacquired the Time and LaRoche holdings, regaining full control of the company ahead of its rebranding as the American Broadcasting Company on June 15, 1945, which formalized the shift to a unified corporate identity while retaining core radio operations. This buyback, leveraging Noble's personal fortune from confectionery and other ventures, eliminated minority influences and positioned the network for independent growth, though early years remained financially strained due to wartime disruptions and market competition.

Programming Evolution and Continuity

Following its sale to Edward J. Noble's American Broadcasting System, Inc. on October 12, 1943, the Blue Network preserved elements of its pre-divestiture programming identity, particularly in sustaining and public affairs content that had distinguished it from NBC's entertainment-heavy Red Network. This continuity emphasized news, cultural broadcasts, and non-commercial features, allowing the network to maintain operational stability amid the separation while avoiding direct competition with NBC's star-driven shows like those of and , which remained on Red. However, the split necessitated rapid evolution to address programming weaknesses, as NBC retained custody of popular weeknight staples such as Lowell Thomas's news commentary in January 1944, prompting Blue to seek replacements through new talent acquisitions and production innovations. Under president Mark Woods, the network invested in transcribed (pre-recorded) programming, pioneering its widespread use in network radio to enable scheduling flexibility, cost efficiencies, and appeal to performers averse to live constraints, as exemplified by Bing Crosby's adoption of the format. This shift marked a strategic departure from the live-broadcast dominance of NBC and CBS, positioning Blue as an innovator in adapting to wartime resource limitations and postwar competition. By mid-1945, as the network prepared for its June 15 rebranding to the (ABC), these efforts had yielded a more autonomous schedule blending retained elements with emerging transcribed entertainment and expanded news services, fostering gradual affiliate loyalty despite initial revenue shortfalls from lost advertisers. This hybrid approach laid groundwork for ABC's radio operations, prioritizing distinctiveness over of established rivals.

Affiliate Expansion Strategies

Following its divestiture from NBC and acquisition by Edward J. Noble on October 12, 1943, for $8 million, the Blue Network confronted a diminished affiliate roster, as many stations opted for affiliation with the stronger NBC Red Network amid the FCC-mandated separation. At purchase, the network operated with 116 affiliates, reflecting prior losses from NBC's preferential allocation of resources and talent to the Red chain. Noble, leveraging his Life Savers fortune, pursued expansion by prioritizing programming enhancements to differentiate the network and appeal to independent stations and those dissatisfied with CBS or Mutual affiliations. Central to this approach was investment in marquee talent and content, including appointing as musical director to elevate entertainment offerings and securing exclusive broadcasts like the and Chamber Music Society of Lower Basin Street. Public affairs programming, such as America's Town Meeting of the Air, and news commentary from figures like were emphasized to provide stations with high-value, advertiser-friendly material. To incentivize recruitment, the network extended news services to local sponsorships, reducing reliance on national advertisers and enabling affiliates to monetize content independently, thereby lowering barriers for smaller or independent outlets to join. These tactics yielded measured success despite competitive pressures; by mid-1945, affiliates numbered around , a roughly 75% increase from acquisition levels, though still trailing Red's 140+ and CBS's dominance. Expansion targeted regional markets underserved by rivals, with contracts emphasizing flexible terms over 's former restrictive options clauses, fostering loyalty among new partners like mid-sized AM stations in the Midwest and . This programming-centric strategy, rather than aggressive station acquisitions (deferred until post-1945 buys like WXYZ in ), underscored causal links between content quality and affiliate retention in a market where listener draw directly influenced station revenues.

Structural and Technical Elements

Owned and Affiliated Stations

The Blue Network owned three flagship stations, which formed the core of its owned-and-operated infrastructure: WJZ in (its primary flagship, operating on 760 kHz with 50,000 watts), KGO in (810 kHz, 5,000 watts), and WENR in (later consolidated with WBEN). These stations were directly transferred to purchaser as part of the $8 million divestiture approved by the FCC on October 12, 1943, enabling the network's independent operation. The network's reach extended through affiliations with independent stations, which carried its programming under contractual agreements for network feeds via telephone lines or shortwave relays. Affiliates numbered 33 in 1937 but grew to 92 by 1941, driven by power upgrades at key outlets and recruitment efforts amid competition from NBC Red and CBS. Early affiliates traced to Westinghouse holdings, including KDKA in Pittsburgh (1020 kHz, 50,000 watts) and WBZ in Boston (1030 kHz, initially until mid-1942), providing foundational coverage in the Northeast and Midwest. Post-divestiture, affiliation strategies emphasized one clear channel per market to avoid overlap, with the network peaking at around 170 affiliates by 1945 before rebranding as ABC. This structure supported sustained programming distribution despite limited owned assets compared to rivals.

Technological Infrastructure and Innovations

The Blue Network's technological infrastructure centered on leased telephone lines from AT&T's Long Lines division, which served as the primary means of distributing live programs from originating studios to affiliated stations nationwide. These wired connections, often spanning thousands of miles—such as the 3,800-mile circuit from Arlington, Virginia, to by the early 1920s—enabled simulcasting from flagship station WJZ in , following the network's launch on January 1, 1927. Local Bell Operating Companies provided Network Enable Microwave Operations (NEMO) services via low-crosstalk cables, linking toll boards to remote broadcast points, while dedicated program lines carried audio signals alongside order wires for cues like the "K" standby signal. This setup addressed early challenges like signal over distance through amplifying and equalizers, such as Western Electric's 1-A model, tested via magneto ring-down procedures. Key innovations included the integration of carrier multiplexing technology by AT&T, which allowed multiple audio channels over a single wire pair, enhancing capacity for simultaneous broadcasts and reducing costs amid growing affiliate numbers—reaching 12 stations and 3,600 circuit miles by 1928. Negative-feedback amplifiers, introduced in 1927, improved signal fidelity by minimizing distortion, while active equalizers flattened frequency response to counter line-induced losses. By March 1941, wideband channels supporting 8-15 kilocycles were deployed, facilitating higher-quality audio transmission up to 15,000 cycles per second, as demonstrated in collaborative experiments like Leopold Stokowski's 1933 Bell Labs trial transmitting three discrete channels from Philadelphia to Washington, D.C. The network's signature three-chime cue, adopted in 1929, streamlined AT&T switchboard operations by signaling program starts, later automated via Rangertone equipment in 1932. Post-1943 divestiture, the independent Blue Network continued leveraging these lines under lease agreements, incorporating reversible circuits by 1936 for bidirectional East-West transmission and meters standardized in 1939 for precise volume control. Round-robin loop topologies, with drop-and-insert capabilities at hubs like (featuring 152 amplifiers and 3,160 jacks), mitigated single-point failures and time-zone delays through live repeats or emerging recordings. Interference issues, such as pair-coupling noise, were managed with chokes and dedicated , though bandwidth limitations persisted until coaxial cable experiments in the late 1930s offered potential for future expansion. These elements underscored the Blue Network's reliance on iterative wire-based advancements rather than over-the-air relays, prioritizing reliability for sustaining programming amid antitrust-mandated separation from Red.

Enduring Impact and Legacy

Contributions to Commercial Radio

The Blue Network, operating from 1927 to 1943 as NBC's secondary outlet, played a pivotal role in expanding commercial radio's appeal through groundbreaking programming that blended sustaining and sponsored content. In 1929, it premiered , radio's first sensationally popular serial drama, which originated from station WABC in New York and rapidly drew massive audiences, paving the way for serialized comedy formats that attracted major sponsors like . This show exemplified how Blue's platform enabled experimental formats to transition into lucrative commercial staples, influencing the structure of evening prime-time schedules across networks. Other sponsored hits on Blue, such as the quiz program Quiz Kids (debuting in 1940 and backed by ), demonstrated the network's capacity to host interactive audience-engagement formats that boosted advertiser interest in daytime and family-oriented slots. While primarily sustaining-oriented—featuring non-sponsored public affairs, classical music like the broadcasts, and educational series such as National Farm and Home Hour—Blue's model indirectly bolstered commercial viability by providing affiliates with flexible, high-quality filler content. Stations could air these programs in unsold time slots, inserting local ads and thereby maximizing revenue potential without the full burden of national sponsorship negotiations. This sustaining-commercial hybrid encouraged affiliate growth to around 24 stations by 1938, fostering a more robust distribution infrastructure that later supported intensified commercial competition. also innovated in news commentary, offering diverse political perspectives that affiliates monetized through spot advertising, contrasting with the more entertainment-focused NBC Red and helping diversify revenue streams in an dominated by chain . The network's forced divestiture in 1943, mandated by regulations against monopolistic practices, marked a lasting contribution by injecting new rivalry into commercial radio. Sold for $8 million to and rebranded as the in 1944, the independent Blue entity challenged and dominance, spurring innovations in programming acquisition and affiliate incentives that elevated overall industry standards and audience options. This structural shift, rooted in antitrust enforcement, ultimately diversified commercial offerings and prevented stagnation in network-sponsored content.

Influence on Broadcasting Competition

The Federal Communications Commission's Chain Broadcasting Regulations, promulgated in May 1941, explicitly addressed in radio networking, including NBC's operation of both the Red and Blue networks, which controlled a majority of national affiliations and programming distribution. These rules prohibited exclusive affiliation contracts, limited "option time" for networks to dictate station schedules, capped affiliation agreements at two years, and mandated NBC's divestiture of one network to foster independent competition and reduce for affiliates and advertisers. The upheld the regulations in 1943, compelling to sell the Blue Network to for $8 million in October of that year, thereby dismantling the structural monopoly that had allowed to subsidize Blue's sustaining programs with Red's commercial revenues while limiting rival networks' access to top talent and clear-channel stations. This divestiture transformed broadcasting competition by establishing the (ABC) as a fully independent entity in , starting with 168 affiliates inherited from Blue and expanding to 272 by 1949, surpassing NBC's 166 and approaching CBS's 178 in network reach. ABC's entry intensified rivalry for and programming, with its 1950 earnings of $24 million reflecting aggressive recruitment of stars and affiliates previously tied to or , though it trailed the incumbents' $41.9 million () and $45.2 million (). The shift eroded NBC's ability to enforce uniform exclusivity, enabling stations to negotiate better terms and experiment with multiple affiliations, which contributed to overall network time sales rising from $79.6 million in 1941 to $127.6 million in 1949 amid a boom in stations from 897 to 2,970. While maintained over 500 affiliates as a alternative, ABC's commercial focus provided a stronger to the NBC-CBS duopoly, spurring innovations like pre-recorded shows to compete on cost and flexibility. Despite persistent dominance by and in high-power Class I-A stations and evening , the Blue Network's independence demonstrably promoted a more dynamic market, as evidenced by heightened bidding for on-air talent and diversified sponsor options, ultimately benefiting listeners through expanded program variety without evidence of reduced output quality. The regulations' emphasis on divestiture over mere contract tweaks marked a causal break from pre-1941 consolidation trends, though their limited enforcement against violations underscored that structural separation, rather than ongoing oversight, drove the competitive gains.

Role in Early Television Development

The Blue Network conducted limited experiments in television program production during the early 1940s, coinciding with nascent industry-wide efforts amid restrictions on equipment and broadcasting. These initiatives focused on script development and production techniques rather than widespread transmission, as the network prioritized radio amid antitrust scrutiny from the . A preserved script from a February television production exemplifies these exploratory activities, though no regular broadcasts occurred prior to the network's divestiture. Following its sale to and rebranding as the (ABC) on June 15, 1945, the former Blue Network extended operations into television on April 19, 1948, establishing a national network with five initial affiliates: in New York, WENR-TV in , in , KECA-TV in , and in . This launch positioned ABC as the third commercial television network, behind and , which had initiated regular programming in 1941. ABC's entry fostered competition during television's post-war boom, when receiver ownership surged from about 5,000 sets in 1945 to over 1 million by 1948, though the network started with disadvantages including only one owned station () and reliance on leased facilities. ABC's early television strategy leveraged the Blue Network's radio affiliate base—approximately 200 stations by 1945—for cross-promotion and talent recruitment, enabling adaptations of popular radio shows like The Fred Allen Show to visual formats. Despite financial strains, with revenues under $10 million annually in the late compared to NBC's $50 million, ABC innovated by emphasizing live variety and sports programming, such as matches, to build audience share. This contributed to the medium's structural development by introducing scheduling flexibility and bidding wars for affiliates, which accelerated nationwide coverage to 50% of U.S. households by 1950. The network's persistence amid challenges, including a 1953 merger with United Paramount Theatres for $25 million in capital, underscored how the Blue Network's divestiture indirectly diversified early television ownership and content options beyond RCA-dominated incumbents.

References

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