This is a snippet from Breaking Walls Episode 100: The Radio Career of Lucille Ball (1938 - 1952)

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During the 1949-1950 radio season, Network revenue dropped for the first time since 1933. Radio’s ratings had dropped 30% since 1947.

The U.S. was in an economic recession and television was becoming a serious threat. Over one-hundred TV stations were now on the air.

Advertisers were learning that production costs for new medium were much greater. NBC, CBS, and ABC used their radio profits to fund TV.

On May 8th, 1950, Lucille Ball and Desi Arnaz officially formed their own production company. They called it Desilu, Inc. If the networks and agencies didn’t believe in the couple, maybe a paying audience would.

On June 2nd, Lucy and Desi’s new act debuted at the Chicago Paramount Theater. It was a combination of vaudeville routine and song. Variety called it “one of the best bills to play the house in recent months.”

The next week they opened at New York’s Roxy to rave reviews.