Falling television ratings at the Union Broadcasting System (UBS) network prompt executives to make drastic changes in programming. When veteran news anchor Howard Beale is fired due to his show's low viewership, he announces on live television that he will commit suicide on his final broadcast. This shocking revelation causes a surge in ratings, and instead of being pulled off the air, Beale is retained and encouraged to continue his on-screen outbursts. His impassioned rants resonate with the public, and he becomes a national icon, proclaiming himself as the "mad prophet of the airwaves." He speaks to the common people's discontent with society, and his show's tagline, "I'm as mad as hell, and I'm not going to take this anymore," becomes a rallying cry.

Behind the scenes, ambitious programming executive Diana Christensen sees an opportunity to capitalize on Beale's newfound popularity. She cuts a deal to create a new kind of show around him, one that blends news with sensational entertainment. Beale's mental instability, however, is of little concern to Diana, whose primary focus is on the escalating viewership and the potential for groundbreaking ratings. As Beale's influence grows, so do the ethical quandaries faced by Max Schumacher, the old-guard news division president who is both repelled and fascinated by the changes in the television industry. His own moral compass and professional integrity become challenged as he navigates the increasingly blurred lines between journalism and show business.