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95-591: The Blue Network (previously known as the NBC Blue Network ) was the on-air name of a now defunct American radio network, which broadcast from 1927 through 1945. 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

190-520: A privately held software company may have net assets (consisting primarily of miscellaneous equipment and/or property, and assuming no debt) valued at $ 1 million, but the company's overall value (including customers and intellectual capital ) is valued at $ 10 million. Anybody buying that company would book $ 10 million in total assets acquired, comprising $ 1 million physical assets and $ 9 million in other intangible assets. And any consideration paid in excess of $ 10 million shall be considered as goodwill. In

285-595: A confidential memorandum, dated May 13, 1936, which sets forth a network policy against mixing the Red and Blue network stations. (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 . Even as far back as December 1932, NBC had set forth

380-458: 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. 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

475-586: A manner even more explicit than the June 1940 report. 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

570-518: 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.,

665-637: 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, and often stations would shift from one network to another, depending on sponsor needs. It was only when the Federal Communications Commission began investigating network practices, McLeod believes, that efforts were made by RCA to differentiate

760-540: 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 gives some idea of

855-557: A part of its lineup from 1929 until March 1945, when the program shifted to NBC. 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 stated that the broadcasts were under RCA sponsorship, and "[t]hrough the medium of nationwide NBC Network broadcasting, Grand Opera has been given to

950-449: A policy banning specific references not only to CBS, but even to the Red Network. 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. 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

1045-468: A private company, goodwill has no predetermined value prior to the acquisition; its magnitude depends on the two other variables by definition . A publicly traded company , by contrast, is subject to a constant process of market valuation, so goodwill will always be apparent. While a business can invest to increase its reputation, by advertising or assuring that its products are of high quality, such expenses cannot be capitalized and added to goodwill, which

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1140-515: 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." During the 1930s, accusations were leveled at both NBC and CBS , in part by their rival Mutual, that

1235-468: A role in the decision. AT&T did in fact subsequently sell WEAF to RCA for $ 1 million in July 1926, a price that newspaper reports indicated was a substantial premium over what other stations were commanding in the marketplace, 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

1330-468: A similar tag for the Blue Network. An example of this buildup comes in "Alice in Sponsor-Land", a publication put out by RCA some time in mid-1941 to market that network's shows. This book focuses squarely on the Red Network, describing its entertainment programming, without any reference to the Blue Network. Above the lineup of stations in the back of the volume is the tag-line: "This is the Red Network of

1425-509: 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. 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. In an interesting variation on the talent shows hosted by Major Bowes ,

1520-468: 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. 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 . It was also known for

1615-442: Is also forbidden under International Financial Reporting Standards . Goodwill can now only be impaired under these GAAP standards. Instead of deducting the value of goodwill annually over a period of maximal 40 years, companies are now required to determine the fair value of the reporting units, using present value of future cash flow, and compare it to their carrying value (book value of assets plus goodwill minus liabilities.) If

1710-404: Is also the case for the portions of the two major satellite radio systems that are produced in-house (mainly music programming). Radio broadcasting originally began without paid commercials. As time went on, however, advertisements seemed less objectionable to both the public and government regulators and became more common. While commercial broadcasting was unexpected in radio, in television it

1805-421: Is an intangible asset recognized when a firm is purchased as a going concern . It reflects the premium that the buyer pays in addition to the net value of its other assets. Goodwill is often understood to represent the firm's intrinsic ability to acquire and retain customer business, where that ability is not otherwise attributable to brand name recognition, contractual arrangements or other specific factors. It

1900-645: Is an indication that the Blue Network had a well-established identity of its own by 1929. 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 contains a three-page letter dated June 28, 1934, from station WSYR in Syracuse, New York , which complains of

1995-547: Is available and WorldSpace Satellite Radio was available. The best and most known commercial broadcasters in Asia are the South Korean radio and television networks SBS , Hong Kong television networks TVB , Taiwanese television networks FTV and Philippine radio and television networks GMA Network . Contemporary hit radio in bold . & Borno Radio Television (BRTV) Goodwill (accounting) In accounting , goodwill

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2090-553: Is in contrast to public broadcasting , which receives government subsidies and usually does not have paid advertising interrupting the show. During pledge drives , some public broadcasters will interrupt shows to ask for donations. In the United States, non-commercial educational (NCE) television and radio exist in the form of community radio ; however, premium cable services such as HBO and Showtime generally operate solely on subscriber fees and do not sell advertising. This

2185-598: Is known as leased access . Other programming (particularly on cable television) is produced by companies operating in much the same manner as advertising-funded commercial broadcasters, and they (and often the local cable provider) sell commercial time in a similar manner. The FCC's interest in program control began with the chain-broadcasting investigation of the late 1930s, culminating in the "Blue Book" of 1946 , Public Service Responsibility For Broadcast Licensees . The Blue Book differentiated between mass-appeal sponsored programs and unsponsored "sustaining" programs offered by

2280-505: Is necessary to have a list of all of company B's assets and liabilities at fair market value. In order to acquire company B, company A paid $ 20. Hence, goodwill would be $ 11 ($ 20 − $ 9). The journal entry in the books of company A to record the acquisition of company B would be: Goodwill is a special type of intangible asset that represents that portion of the entire business value that cannot be attributed to other income producing business assets, tangible or intangible. For example,

2375-496: Is recognized only through an acquisition; it cannot be self-created. It is classified as an intangible asset on the balance sheet, since it can neither be seen nor touched. Under U.S. GAAP and IFRS , goodwill is never amortized , because it is considered to have an indefinite useful life. (Private companies in the United States may elect to amortize goodwill over a period of ten years or less under an accounting alternative from

2470-521: Is technically an intangible asset . Goodwill and intangible assets are usually listed as separate items on a company's balance sheet . In the b2b sense, goodwill may account for the criticality that exists between partners engaged in a supply chain relationship, or other forms of business relationships, where unpredictable events may cause volatilities across entire markets. There are two types of goodwill: institutional (enterprise) and professional (personal). Institutional goodwill may be described as

2565-691: The American Broadcasting Company (ABC). 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. 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

2660-584: The Congress of Industrial Organizations filed a brief in a petition to intervene in the FCC proceedings on the network sale. 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. At the hearings held on September 10, 1943, FCC Chairman James L. Fly roundly denounced

2755-584: 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. The network, again in eventual popular image, tended to place its focus more on news and public affairs programming, as well as

2850-549: 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. 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

2945-446: The audience measurement of a station or network. This makes commercial broadcasters more accountable to advertisers than public broadcasting , a disadvantage of commercial radio and television. In Europe, commercial broadcasting coexists with public broadcasting (where programming is largely funded by broadcast receiver licenses , public donations or government grants). In the UK, Sky UK

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3040-526: The capitalist economy. In England, contracts from the 15th century onward refer to the purchase and conveyance of goodwill, roughly meaning the transfer of continuing business, as distinguished from the transfer of business property. Such agreements were initially unenforceable under the restraint of trade doctrine, which held that one could not claim property in business activity, until Broad v. Jolyffe (1620) established that restraints could be legal in exceptional cases. John Scott, 1st Earl of Eldon defined

3135-483: 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

3230-451: 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, was created at

3325-639: The Blue Network before eventually transitioning over to larger audiences on the Red Network. 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. 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, which are collections of stories which purport to have been part of Blue Network programs. A copy of one, in

3420-588: The Blue Network to change its policies regarding the sale of airtime. Noble's written response seems to have been sufficient. The sale was approved by the FCC on October 12, 1943. 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

3515-484: 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 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

3610-505: The Blue Network. 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." 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. In June 1942, The United States Supreme Court upheld

3705-633: 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

3800-443: 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. 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 illustrating this point. The fact that David Sarnoff ,

3895-619: 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

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3990-457: 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. What follows are some examples of the programming on NBC Blue that illustrate a gradual shift in tone. The official website for Helen Hayes shows

4085-595: The Private Company Council of the FASB .) Instead, management is responsible for valuing goodwill every year and to determine if an impairment is required. If the fair market value goes below historical cost (what goodwill was purchased for), an impairment must be recorded to bring it down to its fair market value. However, an increase in the fair market value would not be accounted for in the financial statements. The concept of commercial goodwill developed together with

4180-409: 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. 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

4275-614: The US and some Latin American countries. Commercial broadcasting is the dominant type of broadcasting in the United States and most of Latin America. "The US commercial system resulted from a carefully crafted cooperation endeavor by national corporations and federal regulators." The best-known commercial broadcasters in the United States today are the ABC , CBS , Fox , and NBC television networks , based in

4370-460: The United States. Major cable television in the United States operators include Comcast , Charter Communications and Cox Communications . Direct-broadcast satellite (DBS) services include DirecTV and Dish Network . In an hour of broadcast time on a commercial broadcasting station, 10 to 20 minutes are typically devoted to advertising . Advertisers pay a certain amount of money to air their commercials , usually based upon program ratings or

4465-506: The WEAF network circuits, and blue the WJZ circuits. The Red and Blue Networks shared a common pool of engineers and facilities, 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

4560-529: The accounting and financial industries because it is fundamentally a workaround employed by accountants to compensate for the fact that businesses when purchased are valued based on estimates of future cash flows and prices negotiated by the buyer and seller, and not on the fair value of assets and liabilities to be transferred by the seller. This creates a mismatch between the reported assets and net incomes of companies that have grown without purchasing other companies, and those that have. While companies will follow

4655-419: The acquisition. Since 2001, U.S. Generally Accepted Accounting Principles (FAS 141) no longer allows the pooling-of-interests method. Goodwill is no longer amortized under U.S. GAAP (FAS 142). FAS 142 was issued in June 2001. Companies objected to the removal of the option to use pooling-of-interests, so amortization was removed by Financial Accounting Standards Board as a concession. As of 2005-01-01, it

4750-524: 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. 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

4845-536: The affiliation system. Following the sale, the Department of Justice dropped its antitrust proceedings against NBC on October 17, 1943, 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. Commercial broadcasting Commercial broadcasting is primarily based on the practice of airing radio advertisements and television advertisements for profit. This

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4940-405: The amount of $ 10.275 million, according to the January 12, 1942, edition of Time . This account by Time 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 . The show

5035-447: 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

5130-420: The choice between two accounting methods to record a business combination: purchase accounting or pooling-of-interests accounting. Pooling-of-interests method combined the book value of assets and liabilities of the two companies to create the new balance sheet of the combined companies. It therefore did not distinguish between who is buying whom. It also did not record the price the acquiring company had to pay for

5225-400: 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

5320-424: The concept succinctly in 1810 as "the probability that the old customers will resort to the old place." In order to calculate goodwill, the fair market value of identifiable assets and liabilities of the company acquired is deducted from the purchase price. For instance, if company A acquired 100% of company B, but paid more than the net market value of company B, a goodwill occurs. In order to calculate goodwill, it

5415-411: 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. This was followed by a petition to the FCC to approve the sale, which was filed on August 13. One of the significant issues surrounding

5510-418: The courts regarding the ability of the FCC to regulate the operations of radio networks. 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

5605-508: 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. The Oakland Tribune stated that 4/5ths of the purchase price of WEAF could be attributed to goodwill and the line access. On July 28, 1926, the Washington Post reported in a front-page story that RCA had acquired WCAP. The Oakland Tribune reported

5700-573: The end of 1929, but still had only 33 stations by 1937. 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. 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

5795-495: 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

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5890-530: The fair value is less than carrying value (impaired), the goodwill value needs to be reduced so the carrying value is equal to the fair value. The impairment loss is reported as a separate line item on the income statement, and new adjusted value of goodwill is reported in the balance sheet. When the business is threatened with insolvency , investors will deduct the goodwill from any calculation of residual equity because it has no resale value. The accounting treatment for goodwill remains controversial within both

5985-566: 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 . RCA (as well as its consortium partners General Electric and Westinghouse ) 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

6080-458: 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 (...) Allegedly, the color designations came from the way the networks were represented on maps, with red lines (or pushpins) denoting

6175-416: 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),

6270-433: 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. 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." On October 3, 1943, Noble released

6365-414: The honors. Three months later, a combined hookup of 67 stations on the two networks presented the second Dempsey – Tunney 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. A slightly later example of cooperation came on the evening of Sunday, December 1, 1929, when the famed "Laird of

6460-497: The intangible value that would continue to inure to the business without the presence of specific owner. Professional goodwill may be described as the intangible value attributable solely to the efforts of or reputation of an owner of the business. The key difference between the two types of goodwill is whether the goodwill is transferable upon a sale to a third party without a non-competition agreement. Previously, companies could structure many acquisition transactions to determine

6555-464: 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. 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

6650-542: The jurisdiction of the FCC to regulate the contractual relations of the major networks with affiliated stations. Efforts in late 1943 before the Senate Interstate Commerce Committee to obtain legislation to, in effect, reverse the decision went nowhere. 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

6745-559: 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

6840-653: 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

6935-647: 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. 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 . RCA's principal rival before 1926

7030-440: The needs of a sponsor; 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. Perhaps more in line with the common perception of the Blue Network as a smaller, but more high-brow and public affairs-centered network was the fact that it was the original home of the NBC Symphony Orchestra broadcasts, led by Maestro Arturo Toscanini . In

7125-540: 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, 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, which is a communication from Hearst Radio complaining that Amos 'n Andy and the Al Pearce programs had been moved from

7220-476: The network. A description of this broadcast is contained in a 1930 pamphlet put out by the Enna Jettick Shoe Company; 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 . At least as late as January 1939, in spite of the fact that by this time NBC

7315-478: The network. 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. On July 30, 1943, just over two months after

7410-431: 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. When Edward J. Noble testified at

7505-453: 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

7600-470: The radio networks. This sustained programming, according to the Blue Book, had five features serving the public interest: Commercial time has increased 31 seconds per hour for all prime time television shows. For example, ABC has increased from 9 minutes and 26 seconds to 11 minutes and 26 seconds. Programming on commercial stations is more ratings-driven— particularly during periods such as sweeps in

7695-491: The rules prescribed by the Accounting Standards Boards, there is not a fundamentally correct way to deal with this mismatch under the current financial reporting framework. Therefore, the accounting for goodwill will be rules based, and those rules have changed, and can be expected to continue to change, periodically along with the changes in the members of the Accounting Standards Boards. The current rules governing

7790-486: 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,

7885-470: The same day that WCAP had departed the field, and WRC would be operating on the frequency they had shared, which was 640 AM. 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. This first broadcast on November 15, 1926, marked NBC's de facto formation of

7980-573: The show's relatively early (7:30 p.m. ET) time slot, it did rather well in the ratings, 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. 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

8075-410: The size and quality of Blue Network stations. 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

8170-690: The telegraph lines of Western Union , which were not as well calibrated to voice transmission as the AT&;T lines. 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. Promotional material produced in 1943 claimed certain "firsts" in broadcasting by WJZ, such as

8265-425: 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.) 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

8360-500: 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

8455-417: The use of university professors to vet the historical accuracy of the stories, as well as scripts by future Pulitzer Prize-winner Arthur Miller . (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). An interesting perspective can be seen on one of the most dramatic days in the history of network radio. On

8550-524: Was planned due to commercial radio's success. Television began with commercial sponsorship and later transformed to paid commercial time. When problems arose over patents and corporate marketing strategies, regulatory decisions were made by the Federal Communications Commission (FCC) to control commercial broadcasting. Commercial broadcasting overlaps with paid services such as cable television , radio and satellite television . Such services are generally partially or wholly paid for by local subscribers and

8645-426: 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." Ironically, even though the Blue Network generally was not given the more popular programs, it

8740-435: 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

8835-555: 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. 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

8930-498: 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

9025-514: 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, though it would appear that subsequent activities in disposing of the assets of BCA may have also played

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