Jack informs Liz that it's time to stop shooting TGS live. He explains that it's financially impractical; they should write and shoot the whole season in two weeks just like Wheel of Fortune. Liz protests that one of the beauties of live TV is that anything can happen. Jack counters that if the is show is more profitable, he can give everyone raises. With that, everyone's onboard, and the crew agrees tonight will be TGS's last live episode. The lone holdout is Kenneth, who believes live TV is a sacred American institution; he vows to prove them wrong. His first example is that on live TV anyone can show up – even Paul McCartney (played by Sir Paul himself).
Hazel is also concerned tonight is the final live episode of TGS. She realizes that it means this is her last chance to run onstage during a sketch and be discovered by Hollywood. She fantasizes that one break could set her up for an incredible fantasy life; Hazel is determined to make it happen.
Jenna tells Liz she wants Paul to propose to her on the show tonight. If it's going to happen, it should happen live. Liz is completely against the idea. Jenna reveals the reaction face she's been preparing since she was three years old. She's not going to miss the opportunity to unveil it now. Liz wonders what other disasters await their final live show.
Kenneth gathers everyone except Jenna and Hazel into Tracy's dressing room and locks the door. He's resolved not to let anyone out until they've changed their minds about this being the last live show. Trying to convince the staff of the wonder of live TV, Kenneth recalls the famous live TV broadcast of "12 Angry Men." Just like that jury, this room will determine the fate of live TV forever! Emphasizing the history of NBC and the very studio they film in, the cast flashes back to an episode of "The Lovebirds," homage of "The Honeymooners," with Jack and Liz in the Ralph and Alice Kramden roles.
Paul arrives in full drag attire. He's ready to propose, but he really doesn't want to do it on live TV. He implores Jenna: their wedding can be a circus, yet the engagement should just be for them. Jenna tells Paul she can't guarantee what her answer will be if he can't propose to her in the manner she wants. Paul dislikes being given an ultimatum. He may have a skirt, a wig and a gynecologist, but he's still a man.
It's time for a commercial, featuring Nazi Dr. Harold Spaceman for Chattertons cigarettes. He explains that a baby's developing lungs need tar and nicotine. Chattertons are perfect if you're in the family way! Kenneth continues rhapsodizing about iconic live TV events such as the moon landing and the Beatles. He mentions old variety shows, like those hosted by Joey Montero, a Dean Martin-esque character. Kenneth mentions Joey and Tracy were a lot alike since neither wanted to rehearse and both left as soon as the show was over. The cast flashes back to an episode of "The Joey Montero Show" with Jack playing the martini-sipping host and Jenna as '60s singer Dusty Springfield. When Kenneth giddily recounts how live TV had everything including publically accepted alcoholism, Toofer counters that they didn't have everything. Where were the black people?
Kenneth informs Toofer and the others how NBC had the first two black characters on television (except that one of them was portrayed by a Caucasian). The cast flashes back to "The Abner and Alfie" show with Tracy playing Alfie and actor Jon Hamm portraying Abner. Jon Hamm's Abner is such an offensive caricature with his broken English and "I's a" sentences, even Tracy is too offended to continue. Tracy implores him as a human being to please stop talking that way, and when it won't stop, Tracy cracks Jon Hamm over the head with a chair.
Liz tries to force her way out of the room by exclaiming her period is about to blow, but Kenneth tells her they both know she's not due for another nine days. The cast flashback to an old NBC newsroom with Chet Huntley and David Brinkley at the anchor desk. The male news anchors are trying to cover the Apollo 13 story but can't understand why their live reporter on the scene is a woman. They ask her to hand the microphone to her father or a police officer so a man can tell us what's happening.
Jenna's upset after she's unable to find Paul anywhere around the studio. Has he completely rejected her wish to become betrothed on live TV? Sensing another moment she can steal, Hazel offers to propose to Jenna during the show. It is New York, after all. You can marry anything. Disheartened, Jenna declines. She realizes Paul is the only one she wants to be with.
Kenneth takes a vote to keep TGS live but it's not unanimous. Jack explains the only thing that would change if live TV went away is the profit margin. Tracy disagrees and shares how his first break came on live TV during a local telethon. He fell down during a dance routine and got big laughs crying out about his hurt coccyx (Young Tracy is played by Community's Donald Glover). Jack remembers working the phones that night as a lower-level G.E. employee (Young Jack is played by Jimmy Fallon; Fred Armisen in drag apes in the background). Liz also recalls making a prank phone call to the telethon and figures out she was actually talking to Jack! Realizing live TV made them who they are today, Jack swears to keep TGS live. To make sure it will remain profitable, he'll simply pay them all less. They all cheer!
The cast is finally ready for their show. During the first skit (Prince Williams and Prince Time-Travelling Fart Detectives), Paul lowers himself from the rafters wearing Victoria's Secret angel wings. Paul proposes to Jenna just as she wanted, yet she says no. Jenna believes Paul was right all along - they must do this privately. After they kiss, Hazel races onstage and tears up a picture of Sinead O'Connor for her big moment. Liz looks over to Jack. Live TV, what can you say?