The network was founded as the Educational Television and Radio Center (ETRC) in November 1952 by a grant from the Ford Foundation's Fund for Adult Education (FAE). It was originally a limited service for exchanging and distributing educational television programs produced by local television stations to other stations; it did not produce any material by itself.
In the spring of 1954, ETRC moved its operations to Ann Arbor, Michigan, and on May 16 of that year, it began operating as a "network". It put together a weekly five-hour package of television programs, distributing them primarily on kinescope film to the affiliated stations by mail. By 1956, ETRC had 22 affiliated stations, expected to grow to 26 by March 1957. The programming was noted for treating subjects in depth, including hour-long interviews with people of literary and historical importance. The programming was also noted for being dry and academic, with little consideration given to entertainment value, a marked contrast to commercial television. Many of the shows were designed as adult education, and ETRC was nicknamed the "University of the Air" (or, less kindly, "The Bicycle Network": a reference to both its low budget and its distribution model of sending physical copies of its films and videotapes to affiliate stations through the mail, a practice known in the television industry as "bicycling").
The center's headquarters moved from Ann Arbor to New York City in 1958, and the organization became known as the National Educational Television and Radio Center (NETRC). The center became more aggressive at this time, increasing its programming output to ten hours a week in an effort to ascend to the role of the U.S.' fourth television network. As the NETRC did not have centralized production facilities or staff of its own, the vast majority of its programs were either produced by the affiliate stations themselves, contracted from independent filmmakers, or — beginning in 1961 with the BBC-produced serial An Age of Kings — imported from various foreign countries such as Canada, the United Kingdom, Australia, France, Italy, and even the USSR and elsewhere in the Eastern Bloc.
Starting from 1962, the federal government took over the FAE's grants-in-aid program through the Education Television Facilities Act.
In November 1963 NETRC changed its name to National Educational Television, and spun off its radio assets. Under the centerpiece program NET Journal, which began airing in the fall of 1966, NET began to air controversial, hard-hitting documentaries that explored numerous social issues of the day such as poverty and racism. While praised by critics, some affiliates, especially those in politically and culturally conservative markets, objected to the perceived liberal slant of the programming. Another NET produced program begun in 1967, Public Broadcast Laboratory, generated similar complaints.