Apparently it all started in the 1950s. As part of rebuilding war-torn Europe the European Broadcasting Union (EBU), based in Switzerland, set up an ad-hoc committee to search for ways of bringing together the countries of the EBU around a "light entertainment program". At a committee meeting held in Monaco in January 1955, director general of Swiss television and committee chairman Marcel Bezençon conceived the idea of an international song contest where countries would participate in one television programme, to be transmitted simultaneously to all countries of the union.
The competition was to be similar to the existing Sanremo Music Festival held in Italy. It was seen also as a technological experiment in live television. In those days it was a very ambitious project to join many countries together in a wide-area international network.
The first contest took place in spring 1956 in Lugano, Switzerland.
The current name "Eurovision" was first used in relation to the EBU's network by British journalist George Campey in the London Evening Standard in 1951.
As to who has won it the most? Surprisingly Ireland holds the record for the highest number of wins, having won the contest seven times—including three times in a row in 1992, 1993 and 1994.
France, Luxembourg and the United Kingdom are joint second with five wins.
Now that give me a little insight.