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Reading old Broadcasting Magazines from the '50s, it appears that there was one main reason why CBS discontinued color broadcasting... money. CBS executives were quoted as saying they would only broadcast a show in color if the advertisers paid the extra costs involved in color broadcasting. NBC/RCA was using the color broadcasts more as a loss leader to get more color TV sets in homes. As time passed, color sales in the '50s weren't at the levels that would sustain advertising at the level CBS wanted, so they quit broadcasting color.
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