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Sunday, September 12, 2010

John Kluge Sets the Stage for an American Fourth Televison Network in 1986 Television History

John Kluge, one-time owner of Metromedia Communications, passed away, September 7th, 2010.  He was instrumental in establishing the 4th major television network in the United States when he sold his 6 independent television stations to Rupert Murdock of Australia.  Murdock used the stations to form the FOX Television Network.

For the first four decades of commercial television in the United States, most of the country  received programming from NBC, CBS, and ABC.  NBC and CBS were the better established and the most profitable television broadcast services, with ABC struggling to come in as a distant third in the three-way race.  However, in the major cities, the network affiliates were unable to keep up with the demand for local commercial availabilities.  Independent stations, running syndicated and local programs were able to thrive by selling "spot" advertising (National Ad Agency Purchases of local airtime).   John Kluge, an Economics graduate of Columbia University, who had invested in a radio station after leaving the service following WWII, began buying stock in the Metropolitan Broadcasting Company, the parent company of WABD (later WNEW Channel 5 and now WNYC) and Channel 5 (WTTG) in Washington, DC.  These two stations were the remnants of the defunct DuMont Network which discontinued network programming in 1955.  Over a period of 27 years, Kluge built Metromedia Inc. into the largest and most profitable independent station group with acquisition of  TV stations in Los Angeles, Minneapolis, Houston, Kansas City and Boston (among others) as well as 24 radio stations.   In 1984, Kluge attempted to launch a fourth television network using the Metromedia group as a base.  At this time cable television was still not as commonplace as it is in this present day and satellite was still in its infancy.  Several prime-time and daytime shows were attempted, but quickly faded.


In 1985, Rupert Murdock of Australia, purchased 20th Century-Fox studios (along with its extensive film and TV Library) and then set about to acquire television properties of his own in order to form a fourth commercial television network in the United States.  Kluge sold the five remaining Metromedia stations (most of the smaller ones had been sold to acquire WCVB-TV in Boston) to Murdock's News Corporation for a reported 2 Billion dollars (Later reports have raised this figure to 3.4 Billion dollars.).  Murdock, with the combination of TV stations, production facilities and the FOX film library, succeeded in establishing the FOX Television Network in 1986.

Kluge went on to invest in restaurant ownership (Steak n' Ale, Pondersosa Steak House) and Long Distance and Cellular Telecommunications (Metromedia Communications).  In his later years he became a philanthropist, donating much of his fortune to his Alma Mater, Columbia University in New York.