NBC in Trouble
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Case Code: BSTR233 Case Length: 23 Pages Period: 1990-2006 Pub Date: 2006 Teaching Note: Available |
Price: Rs.400 Organization: NBC Industry: Media, and Television Broadcasting Countries: US Themes: Failure of Strategy, Revival, Competition, Trends |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
In 1919, Radio Corporation of America (RCA) was created to market radio receivers produced by GE, Westinghouse, AT&T and United Fruit Company. In 1926, RCA started the National Broadcasting Company (NBC) for radio broadcasting. In 1927, RCA divided NBC into NBC-Red for broadcasting entertainment and music programs, and NBC-Blue for cultural and news items. In the late 1920s, RCA also began working on television broadcasting and started putting its profits from radio into television R&D. In 1931, NBC began experimental television broadcasts from the Empire State Building in New York. In 1932, differences among the four companies resulted in an independent RCA with NBC coming under its control. RCA continued funding NBC's television research and in 1939, NBC started regular television broadcasts. RCA slowly became a major producer and marketer of radio receivers and radio content. The NBC network also gained significant popularity and achieved a dominant position in the broadcasting business...
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