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 […]