Blue Network - Creation

Creation

RCA (as well as its consortium partners General Electric and Westinghouse) were to receive 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. 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 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 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 good-will 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 the same day that WCAP had departed the field, and WRC would be operating on the frequency that 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 the de facto formation by NBC of the 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; this 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 (...)"

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.