CBS led the ratings for years, but it was created as an act of revenge. When Arthur Judson, a talent agent, saw that none of the stars he represented were accepted for NBC’s radio networks, Judson created his own network, the United Independent Broadcasters. This network was soon merged with the Columbia Phonograph Company and became the Colombia Phonograph Broadcasting Company. Soon, after ailing profits and a few sales, the company came into the hands of William Paley, who renamed the network to CBS (Colombia Broadcasting System).
While Paley was aggressive in his advertising strategy (that literally paid off for the company), his main achievement was recognizing future stars and signed stars like Bing Crosby and a strong news team led by Edward R. Murrow. Paley was at first hesitant to enter the world of television broadcasting, but when it did, it maintained strong first-place finishes in the ratings for almost 20 years thanks to hits like I Love Lucy, Ed Sullivan, and Gunsmoke.
The network did hit a speed bump with Joseph McCarthy and his followers named the station the Communist Broadcasting System. It also required loyalty oaths from all of its employees. Murrow fought this with his 1954 investigation of McCarthy, See It Now. Unfortunately, CBS officials disliked Murrow after this and one of the greatest news men of all time resigned in 1961. The impressive news department became shouldered for the likes of entertainment programming, such as when the 1966 Senate hearings on the Vietnam War were not broadcasted; instead, reruns of I Love Lucy were aired. Head of News division Fred Friendly resigned shortly after.