William S. Paley
William Samuel Paley was an American businessman, primarily involved in the media, and best known as the chief executive who built the Columbia Broadcasting System from a small radio network into one of the foremost radio and television network operations in the United States.
Early life and education
Paley was born on September 28, 1901, in Chicago, Illinois, the son of Goldie and Samuel Paley. His family was Jewish, and his father was an immigrant from Ukraine who ran a cigar company. As the company became increasingly successful, Samuel Paley became a millionaire, and moved his family to Philadelphia in the early 1920s.William Paley matriculated at Western Military Academy in Alton, Illinois but later transferred to, and recorded his degree from, the University of Pennsylvania, where he was a member of the Theta chapter of Zeta Beta Tau fraternity. He was expecting to take an increasingly active role running the family cigar business upon graduation.
In 1927, Samuel Paley, Leon Levy, and some business partners bought a struggling Philadelphia-based radio network of 16 stations called the Columbia Phonographic Broadcasting System. Samuel Paley's intention was to use his acquisition as an advertising medium for promoting the family's cigar business, which included the La Palina brand. Within a year, under William's leadership, cigar sales had more than doubled, and, in 1928, the Paley family secured majority ownership of the network from their partners. Within a decade, William S. Paley had expanded the network to 114 affiliate stations.
Career
Broadcasting
Paley quickly grasped the earnings potential of radio and recognized that good programming was the key to selling advertising time and, in turn, bringing in profits to the network and to affiliate owners. Before Paley, most businessmen viewed stations as stand-alone local outlets, as the broadcast equivalent of local newspapers. Individual stations originally bought programming from the network and, thus, were considered the network's clients.Paley changed broadcasting's business model not only by developing successful and lucrative broadcast programming but also by viewing advertisers and sponsors as the most significant element of the broadcasting equation. Paley provided network programming to affiliate stations at a nominal cost, thereby ensuring the widest possible distribution for both the programming and the advertising. The advertisers then became the network's primary clients and, because of the wider distribution brought by the growing network, Paley was able to charge more for the ad time. Affiliates were required to carry programming offered by the network for part of the broadcast day, receiving a portion of the network's fees from advertising revenue. At other times in the broadcast day, affiliates were free to offer local programming and sell advertising time locally.
Paley's recognition of how to harness the potential reach of broadcasting was the key to his growing CBS from a tiny chain of stations into what was eventually one of the world's dominant communication empires. During his prime, Paley was described as having an uncanny sense for popular taste and exploiting that insight to build the CBS network. As war clouds darkened over Europe in the late 1930s, Paley recognized Americans' desire for news coverage of the coming war and built the CBS news division into a dominant force just as he had previously built the network's entertainment division.
As early as 1940 Paley envisioned the creation of a network division within CBS tasked with serving much of South America. In collaboration with his news director Paul White and his director of short wave operations Edmund Chester, Paley laid the foundation for a chain of sixty-four stations in eighteen countries which would subsequently be known as La Cadena de las Americas. By 1942, Paley's innovative network was broadcasting both news and cultural programming live from CBS in New York City in cooperation with the government's Office of the Coordinator of Inter-American Affairs under the direction of a young Nelson Rockefeller. During World War II, these broadcasts played a central role in promoting cultural diplomacy and Pan Americanism as part of President Franklin Roosevelt's Good Neighbor Policy. In 1943, he and Chester were awarded the Carlos Manuel de Cespedes National Order of Merit by the Cuban government in recognition of his efforts to foster greater understanding between the peoples of Cuba and the United States of America, in recognition of services performed by the Columbia Broadcasting System's Latin-American shortwave radio network.
During World War II, Paley served as director of radio operations of the Psychological Warfare branch in the Office of War Information at Allied Force Headquarters in London, where he held the rank of colonel. While based in England during the war, Paley came to know and befriend Edward R. Murrow, CBS's head of European news who expanded the news division's foreign coverage with a team of war correspondents later known as the Murrow Boys. In 1946, Paley promoted Frank Stanton to president of CBS. CBS expanded into television and rode the postwar TV boom to surpass NBC, which had dominated radio.
CBS has owned the Columbia Record Company and its associated CBS Laboratories since 1939. In June 1948, Columbia Records introduced the 33-1/3-rpm LP record, which could hold more than 20 minutes' worth of music on each side, and became a standard recording format through the 1970s. Also, CBS Laboratories and Peter Goldmark developed a method for color television. After lobbying by RCA President David Sarnoff and Paley in Washington, D.C., the Federal Communications Commission approved the CBS system, but later reversed the decision based on the CBS system's incompatibility with black and white receivers. The new, compatible RCA color system was selected as the standard, and CBS sold the patents to its system to foreign broadcasters as PAL SECAM. CBS broadcast few color programs during this period, reluctant to supplement RCA revenue. They did, however, buy and license some RCA equipment and technology, taking the RCA markings off of the equipment, and later relying exclusively on Philips-Norelco for color equipment beginning in 1964, when color television sets became widespread. PAL or Phase Alternating Line, an analogue TV-encoding system, is today a television-broadcasting standard used in large parts of the world.
"Bill Paley erected two towers of power: one for entertainment and one for news," 60 Minutes creator Don Hewitt claimed in his autobiography, Tell Me a Story. "And he decreed that there would be no bridge between them.... In short, Paley was the guy who put Frank Sinatra and Edward R. Murrow on the radio and 60 Minutes on television."
Paley was not fond of one of the network's biggest stars. Arthur Godfrey had been working locally in Washington, DC and New York City hosting morning shows. Paley did not consider him worthy of CBS, being a mere local host. When Paley went into the Army and took up his assignment in London, and Frank Stanton assumed his duties, he decided to try Godfrey on the network. By the time Paley returned, Godfrey was a rising star on the network with his daily Arthur Godfrey Time program. Paley had to accept the entertainer, but the two were never friends. Godfrey would, on occasion, mock Paley and other CBS executives by name, on the air. Godfrey's massive revenues from advertising on the popular morning programs and his two prime-time shows Arthur Godfrey's Talent Scouts and Arthur Godfrey and his Friends, protected him from any reprisals. In private, Paley and his colleagues despised Godfrey.
The relationship between Paley and his news staff was not always smooth. His friendship with Edward R. Murrow, one of the leading lights in the CBS news division, suffered during the 1950s over the hard-hitting tone of the Murrow-hosted See It Now series. The implication was that the network's sponsors were uneasy about some of the controversial topics of the series, leading Paley to worry about lost revenue to the network as well as unwelcome scrutiny during the era of McCarthyism. In 1955, Alcoa withdrew its sponsorship of See It Now, and eventually the program's weekly broadcast on Tuesdays was stopped, though it continued as a series of special segments until 1958.
In 1959, James T. Aubrey Jr. became the president of CBS. Under Aubrey, the network became the most popular on television with shows like The Beverly Hillbillies and Gilligan's Island. However, Paley's personal favorite was Gunsmoke; in fact, he was such a fan of Gunsmoke that, upon its threatened cancellation in 1967, he demanded that it be reinstated, a dictum that led to the abrupt demise of Gilligan's Island, which had already been renewed for a fourth season.
During the 1963–1964 television season, 14 of the top 15 shows on prime-time and the top 12 shows of daytime television were on CBS. Aubrey, however, fought constantly with Fred W. Friendly of CBS News, and Paley did not like Aubrey's taste in low-brow programming. Aubrey and Paley bickered to the point that Aubrey approached Frank Stanton to propose a take-over of CBS. The takeover never materialized and, when CBS's ratings began to slip, Paley fired Aubrey in 1965.
In 1972, Paley ordered the shortening of the second installment of a two-part, in-depth CBS Evening News series on the Watergate scandal, following a complaint by Charles Colson, an aide to President Richard Nixon. And later, Paley briefly ordered the suspension of instant and often negatively critical analyses by CBS news commentators which followed presidential addresses.
Over the years, Paley sold portions of his family stockholding in CBS. At the time of his death, he owned less than nine percent of the outstanding stock. In 1995, five years after Paley's death, CBS was bought by Westinghouse Electric Corporation and, in 1999, by Viacom, which itself was once a subsidiary of CBS. Today, CBS is owned by Paramount Skydance Corporation.