Federal Communications Commission Record 9 FCC Red No
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FCC 94-57 Federal Communications Commission Record 9 FCC Red No. 6 KOMO-TV encompasses all of Seattle, KVI(AM) and Before the KPLZ-FM©s community of license. The applications are Federal Communications Commission unopposed.2 Washington, D.C. 20554 2. Fisher bases its request on the Commission©s one- to-a-market waiver standards adopted in Second Report and Order in MM Docket No. 87-7 ("Second Report and Or In re Applications of der"), 4 FCC Red 1741, recon. granted in pan and denied in pan, ("Second Report and Order Recon."). 4 FCC Red 6489 KVI, Inc. File No. BAL-930812EA (1989). Under these criteria, the Commission presump combinations (Assignor) tively favors waiver requests involving station serving the top 25 markets where there are at least 30 separately owned, operated and controlled broadcast li and censes or "voices" after the proposed combination ("top 25 market/30 voice standard"). It also favors requests involving Fisher Broadcasting, Inc. "failed" broadcast stations, that is, stations that have not (Assignee) been operating for a substantial period of time, e.g., four months, or that are involved in bankruptcy proceedings. For Assignment of the License of See 47 C.F.R. Sec. 73.3555, n.7. While Fisher©s waiver it nev KVI(AM), Seattle, Washington request meets the top 25 market/30 voice standard, ertheless must be reviewed under the case-by-case standard also outlined in the Second Report and Order.'' Under this KPLZ, Inc. File No. BALH-930812GJ standard, the Commission makes a public interest deter (Assignor) mination based upon the following criteria: (1) the poten tial public service benefits of joint operation of the and facilities; (2) the types of facilities involved; (3) the number of media outlets owned by the applicant in the relevant Fisher Broadcasting, Inc. market; (4) the financial difficulties of the stations in in light (Assignee) volved; and (5) the nature of the relevant market of the level of competition and diversity after the joint operation is implemented. For Assignment of the License of 3. In support of its waiver request, Fisher submits a KPLZ-FM, Seattle, Washington detailed showing which addresses each of the five case- by-case factors. Fisher first contends that the combination of KOMO(AM), KVI(AM), KPLZ-FM and KOMO-TV will MEMORANDUM OPINION AND ORDER create cost savings by combining news staffs as well as programming and production staffs. Fisher also maintains Adopted: March 8, 1994; Released: March 15, 1994 that savings will be realized by joint purchasing of supplies as well as the elimination of overlapping outside program By the Commission: services. Fisher asserts that it expects to realize significant economic efficiencies in the sharing of personnel, particu 1. The Commission has before it the above-captioned larly in the engineering and administrative areas. Fisher application for assignment of the license of KVI(AM), Seat also maintains that the proposed combination will allow tle, Washington, from KVI, Inc. ("KVI") to Fisher Broad the consolidation of its radio operations at the modern casting, Inc. ("Fisher"), the above-captioned application for facilities of KVI(AM) and KPLZ-FM. Fisher further in assignment of the license of KPLZ-FM. Seattle, Washing dicates that the four-station combination will "cross-pro ton, from KPLZ, Inc. ("KPLZ") to Fisher, and a related mote" itself and that certain marketing and research request for waiver of 47 C.F.R. Sec. 73.3555(c), the Com functions will be combined. Fisher also contends that mission©s one-to-a-market rule. 1 Fisher is the licensee of KVI(AM) and KPLZ-FM will have access to the extensive KOMO(AM) and KOMO-TV, Channel 4, an ABC net news gathering facilities of KOMO-TV. as well as its many work-affiliate, Seattle, Washington. The Grade A contour of mobile units. In sum. Fisher estimates projected savings of 1 Section 73.3555(c) of the Commission©s Rules prohibits the ton radio metro-market, as defined by Arbitron, Inc., Fisher common ownership of radio and television stations in the same supplies audience share data from the most recent Arbitron market if the 2 mV/m contour of an AM station or the 1 mV/m survey available from that market at the time the instant ap contour of an FM station encompasses the entire community of plications were filed. See 47 C.F.R. Sec. 73.3555(a)(3)(iii). Those license of a television station or, conversely, if the Grade A data show that the combined audience share of KOMO(AM), contour of a television station encompasses the entire commu KVI(AM) and KPLZ-FM in the Seattle metro-market is 12.5 nity of license of an AM or FM station. percent, and therefore below the 25 percent audience share 2 Since the principal community contours of KOMO(AM) and limit set forth in the Rules. KVI(AM) overlap. Fisher must meet the requirements of the ^ Because Fisher©s waiver request invokes the local ownership radio ownership rule found in Section 73.3555(a) of the Com limits of the amended radio multiple ownership rule, found at mission©s Rules. Fisher certifies that there are at least 15 radio Section 73.3555(a) of the Commission©s Rules (47 C.F.R. Sec. stations whose contours overlap the contours of the proposed 73.3555(a)), we require that it be evaluated under the case- commonly-owned stations. Because over 50 percent of the prin by-case standard, regardless of the size of the market involved. cipal community contour overlap of same service stations See In re Revision of Radio Rules and Policies, 1 FCC Red 6387. KOMO(AM) and KVI(AM) occurs within the Seattle, Washing 6394 n.40 (1992). 1330 9 FCC Red No. 6 Federal Communications Commission Record FCC 94-57 $710,000 annually from this proposed media combination metro market for radio stations and the relevant ADI [Area as well as increased public service and programming bene of Dominant Influence] TV market for TV stations." Sec fits.4 ond Report and Order, 4 FCC Red at 1760. n.101. Fisher 4. Second, regarding the technical facilities involved, represents that the Seattle ADI is ranked 14th in the coun KOMO-TV is a VHP television station operating on Chan try and contains 26 AM stations, 26 FM stations, 13 TV nel 4 with 100 kW effective radiated power ("ERP") and stations and six major daily newspapers. Fisher further an antenna height of 810 feet above average terrain indicates that if the proposed combination is approved, the ("HAAT"). KPLZ-FM is a Class C FM station operating on approximately 65 broadcast stations in the Seattle ADI will Channel 268 (101.5 MHz) with 100 kW ERP and an be owned and operated by 43 different "voices." Addition antenna height of 1200 feet HAAT. KVI(AM) operates full ally, Fisher asserts that the Seattle-Tacoma area is served by time on 570 kHz with a power of 1000 watts using a four different cable system operators, with an aggregate non-directional antenna. KOMO(AM) operates on 1000 cable penetration of 67 percent. Finally, Fisher argues that kHz with a full time power of 50.000 watts using a direc if this waiver request did not invoke the local ownership tional antenna during nighttime hours only. limits of the amended radio multiple ownership rules, the 5. Third, with respect to the number of other media request would easily meet the criteria of the top 25 mar outlets the applicant already owns in the relevant market. ket/30 voice standard which the Commission presumptively Fisher affirms that, other than KOMO-TV and favors. In prior decisions, Fisher notes, the Commission KOMO(AM), it does not own any broadcast stations in the has held that "the advantages of permitting radio-television Seattle market.5 As previously noted, Fisher demonstrates combinations in the top 25 markets, which have numerous that, for the purposes of our local radio ownership rule, competing voices, generally would not undermine the found in Section 73.3555(a)(l)(ii) of the Commission©s benefits derived from the Commission©s traditional pro- Rules (47 C.F.R. Sec. 73.3555(a)(l)(ii)), there are at least competitive and diversity policies." The Helen Broadcasting 15 radio stations whose contours overlap the contours of Co. Limited Partnership, 5 FCC Red 2829, 2833 (1990). the proposed commonly-owned radio stations and that the 8. In evaluating a request for a waiver of the one- combined audience share of KVI(AM), KOMO(AM) and to-a-market rule, the Commission©s goal "is to permit the KPLZ-FM in the Seattle metro-market is 12.5 percent. public to benefit from such efficiencies of operation as may 6. Fourth, with regard to the economic status of the be achieved through the use of common facilities and staff, stations involved in the proposed combination. Fisher consistent with the maintenance of diversity and vigorous states that KOMO(AM) sustained a net operating loss of competition within the market areas involved." Second nearly $1 million in 1992 and "is likely to lose $1.5 Report and Order Recon., 4 FCC Red at 6491." We conclude million or more in 1993." Fisher further states that it "has that Fisher©s showing in support of a waiver of the one- subsidized the losses from KOMO(AM) with revenues from to-a-market rules meets our case-by-case criteria, and that a KOMO-TV[,] . consistent with Fisher©s long term com waiver in this instance is consistent with the public interest mitment to the Seattle-Tacoma area." Fisher contends that and would not have an adverse effect on diversity and in order to make KOMO(AM) viable, it must be allied competition in the Seattle market.7 with compatible stations such as KVI(AM) and KPLZ-FM.