The FCC created by the communications act of 1934. In section 303 it was specified that the FCC exercise it’s authority. The commission decided to dismantle the RCA-NBC monopoly. The chain broadcasting report was issued by the FCC in 1941 in order NBC to sell one of it’s two networks that it operated.
Due to an access of affiliates in the same cities, NBC expanded rapidly. In 1928 it split it’s programming into two separate networks, red network, and blue network. The report said that RCA had a “practical monopoly of network broadcasting”, since 25% of all radio stations were affiliated with NBC. FCC said no company could own more than one radio network.
In 1941 Edward J. Noble a millionaire who made his fortune from the life savers candy purchased the blue network, which he named the American broadcasting system (ABS). One year later it was changed American Broadcasting Company (ABC). In 1943 the supreme court confirmed the FCC’s right to force NBC to sell a network.
Noble began by experimenting with inexpensive public affairs programming. He soon discovered in order to survive he needed to emphasize commercial programming. This was difficult because most existing television stations were affiliates of the better established CBS and NBC. In 1951 Noble agree to sell his interest in ABC to Leonard Goldenson, the head of United Paramount Theaters. By 1953 the ABC-UPT merge was approved by the FCC making ABC the owner of over 100 movie houses. Many of which were sold in 1974.
With Goldonson’s back round in movie promotion and UPT’s capitol ABC began commercial programming designed to appeal to youthful audiences. Soon establishing ABC as one of the top three major TV networks. Disney Land and the Mickey Mouse Club were two of ABC’s early successors earning them their first profit of six million dollars. By the 1960’s ABC was the major broadcaster of sports. In 1961 the instant replay was developed by ABC engineers.
ABC was also the first to buy products from Hollywood studios which were televisions largest rivals for audiences at the time. Television soon became the studio’s biggest customers. In 1985 capital cities communications bought out ABC and in 1996 capitol cities/ABC Inc. was acquired by the Walt Disney Company for nineteen billion dollars creating the worlds largest media and entertainment company.
Aside from television in 1955 ABC entered the phonograph record business when it purchased a subsidiary and under the consolidated ABC records division developed such labels as ABC, Westminster, Dot, and Impulse. The record division was sold in 1979 and a video division was started.
