Undervaluing Mutual: The FCC’s Missed Opportunity to Restructure Radio Broadcasting in the New Deal Era

Abstract

This article reexamines the Federal Communications Commission’s investigation into monopoly practices by the “chain” or network radio broadcasters in the late 1930s and early 1940s. The FCC targeted NBC and CBS and eventually succeeded in forcing NBC to sell its Blue radio network. But the Commission ultimately failed to prevent network domination of affiliates. I argue that the Commission missed an opportunity to recognize that the Mutual Broadcasting System offered an alternative, cooperative model for organization of the industry that could have better served the FCC’s goals of harnessing the power of chain broadcasting and promoting localism in broadcasting.