Nov
01
1995

Media Monopoly: Long History, Short Memories

ABC Was Born Out of Fear of Media Consolidation

What's wrong with media mergers? A look at the history of ABC--the network that the Walt Disney Company is in the process of swallowing up--illustrates nearly every argument against consolidation of media ownership. ABC can trace its origins back to 1919, when RCA, the Radio Corporation of America, was created by a consortium of General Electric, Westinghouse, AT&T and United Fruit. RCA and its allies controlled the patents for radio, and had a virtual monopoly until the alliance was declared to violate antitrust laws in 1932. In the meantime, RCA had launched the National Broadcasting Company (NBC) which controlled two […]