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Federal Communications Commission Record FCC 94-55

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Federal Communications Commission Record FCC 94-55 9 FCC Red No. 6 Federal Communications Commission Record FCC 94-55 tively favors waiver requests involving station combinations Before the serving the top 25 markets where there are at least 30 Federal Communications Commission separately owned, operated and controlled broadcast li Washington, D.C. 20554 censes or "voices" after the proposed combination ("top 25 market/30 voice standard"). It also favors requests involving "failed" broadcast stations, that is, stations that have not In re Applications of been operating for a substantial period of time, e.g., four months, or that are involved in bankruptcy proceedings. BREM Broadcasting File Nos. BAL-930107EA, See 47 C.F.R. Sec. 73.3555. n.7. Because the waiver re quested by WKRG does not meet the top 25 market/30 (Assignor) BALH-930107EB voice or the failed-station standard, WKRG seeks review of its waiver request under the case-by-case standard also out and lined in the Second Report and Order.4 Under this standard, the Commission makes a public interest determination WKRG-TV, Inc. based upon the following criteria: (1) the potential public (Assignee) service benefits of joint operation of the facilities: (2) the types of facilities involved; (3) the number of media outlets For Assignment of the Licenses of owned by the applicant in the relevant market: (4) the financial difficulties of the stations involved; and (5) the WCOA(AM) and WJLQ-FM, nature of the relevant market in light of the level of Pensacola, Florida competition and diversity after the joint operation is imple mented. 3. In support of its waiver request. WKRG submits a MEMORANDUM OPINION AND ORDER detailed showing which addresses each of the five case- by-case factors. WKRG first contends that although the two Adopted: March 8, 1994; Released: March 15, 1994 AM/FM radio combinations involved are licensed to dif ferent communities in different states, the stations will still By the Commission: Commissioner Barrett concurring be able to create cost savings by consolidating sales offices, and issuing a statement. sharing equipment, and securing volume discounts on pur chases of supplies. WKRG asserts that it expects to realize 1. The Commission has before it the above-captioned significant economic efficiencies in the sharing of per applications for assignment of the licenses of WCOA(AM) sonnel, particularly in the engineering, administrative and and WJLQ-FM, Pensacola. Florida, from BREM Broadcast accounting areas. WKRG also maintains that programming ing ("BREM") to WKRG-TV, Inc. ("WKRG") and a related and sales personnel will be shared among the stations, as request for waiver of 47 C.F.R. Sec. 73.3555(c). the Com will the professional services provided by attorneys, mission©s one-to-a-market rule. 1 WKRG-TV is the licensee accountants, financial institutions and insurance carriers. of WKRG(AM), WKRG-FM and VHP television "station WKRG further indicates that the five-station combination WKRG-TV, Mobile, Alabama.2 The Grade A contour of will "cross-promote" itself and that certain marketing and WKRG-TV encompasses all of Pensacola, WCOA(AM) and research functions will be combined. WKRG also contends WJLQ-FM©s community of license. The applications are that WCOA(AM) and WJLQ-FM will have access to the unopposed. extensive news gathering facilities of WKRG-TV. which 2. WKRG bases its request on the Commission©s one- employs over forty people, as well as access to WKRG-TV©s to-a-market waiver standards adopted in Second Report and extensive public affairs programming expertise. In total. Order in MM Docket No. 87-7 ("Second Report and Or WKRG estimates projected savings of over $200.000 an- der"), 4 FCC Red 1741. recon. granted in pan and denied in pan, ("Second Report and Order Recon."). 4 FCC Red 6489 (1989).3 Under these criteria, the Commission presump 1 Section 73.3555(c) of the Commission©s Rules prohibits the market, as defined by Arbitron, Inc., WKRG supplies audience common ownership of radio and television stations in the same share data from the most recent Arbitron survey available from market if the 2 mV/m contour of an AM station or the 1 mV/m that market at the time the instant applications were filed. See contour of an FM station encompasses the entire community of 47 C.F.R. Sec. 73.3555(a)(3)(iii). Those data show that the com license of a television station or, conversely, if the Grade A bined audience share of WKRG(AM), WKRG-FM, WCOA(AM) contour of a television station encompasses the entire commu and WJLQ-FM in the metro-market is 14.6 percent. WKRG has nity of license of an AM or FM station. also demonstrated that the combined audience share figure for 2 WKRG©s ownership of these three stations predates the Com the four radio stations in Pensacola, Florida, is also below the 25 mission©s adoption of the "one-to-a-market" provision of the percent audience share limit set forth in the rules. We note that multiple ownership rules, and is therefore "grandfathered." See there is no overlap between the principal community contours 47 C.F.R. Sec. 73.3555(b). of the two AM stations, WKRG(AM) and WCOA(AM). 3 Since the principal community contours of WKRG-FM and 4 In any event, because WKRG©s acquisition of WCOA(AM) WJLQ-FM overlap, WKRG must meet the requirements of the and WJLQ-FM invokes the local ownership limits of the radio ownership rule found in Section 73.3555(a) of the Com amended radio multiple ownership rule, found at Section mission©s Rules. WKRG certifies that there are at least 15 radio 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 would evaluate its waiver request under the commonly-owned stations. Because over 50 percent of principal case-by-case standard, regardless of the size of the market in community contour overlap of same service stations WKRG-FM volved. See In re Revision of Radio Rules and Policies, 1 FCC and WJLQ-FM occurs within the Mobile, Alabama radio metro- Red 6387, 6394 n.40 (1992). 1333 FCC 94-55 Federal Communications Commission Record 9 FCC Red No. 6 nually from this proposed media combination as well as December 31, 1991 and the ten months ending October 31, increased public service benefits and programming 1992. According to these reports, WCOA(AM) and WJLQ- benefits.5 FM sustained a net operating loss of $538,793.59 in 1991. 4. Second, regarding the technical facilities involved, In 1992, the two stations sustained a net operating loss of WKRG-TV, Mobile©s CBS-affiliate, is a full power VHP $402,998.75. WKRG asserts that the stations have been able television station operating on Channel 5. WKRG-FM and to maintain operations only because of loans of $ WJLQ-FM are both Class C FM stations. WKRG-FM op 525,122.54 made to BREM by Phase II Broadcasting, Inc. erates on Channel 260C (99.9 MHz) with an effective radi ("Phase II"), which is owned by Edmond J. Muniz, a ated power ("ERP") of 94 kW and an antenna height of partner in BREM.7 Without these regular contributions by 535 meters above average terrain ("HAAT") while WJLQ- Phase II, WKRG argues, BREM may be forced to dis FM operates on Channel 264C (100.7 MHz) with an ERP continue operation of the two stations. WKRG also notes of 100 kW and an antenna height of 474 meters HAAT. that, despite two years of listing WCOA(AM) and WKLQ- WKRG(AM) operates on 710 kHz with a daytime power of FM with media brokers, WKRG is the only bona fide 1000 watts and a nighttime power of 500 watts using a purchaser BREM has been able to identify for the two directional antenna during nighttime hours only. stations.8 WCOA(AM) operates on 1370 kHz with a daytime power 7. The fifth factor relates to the nature of the relevant of 5000 watts and a nighttime power of 5000 watts using a market in light of the Commission©s concerns about diver directional antenna during nighttime hours only. WKRG sity and competition. Relevant indicia include the number contends that the most salient fact about these facilities is of broadcast outlets, the number of separately-owned and that WCOA(AM) and WJLQ-FM are licensed to different operated "voices" in the market, and the presence of cable communities in different states from the stations which and non-broadcast media. As to the number of broadcast WKRG already owns. WKRG notes that Pensacola. Florida stations, the Commission has held that, in the context of a is a distinct and separate radio metro market from Mobile, one-to-a-market waiver, it will consider the "relevant TV Alabama, as designated by Arbitron, Inc. WKRG further metro market for radio stations and the relevant ADI TV notes that local issues of importance are covered by market for TV stations." Second Report and Order, 4 FCC WKRG(AM)/WKRG-FM and WCOA(AM)/WJLQ-FM in Red at 1760, n.101. WKRG represents that the Mobile- their respective communities. Pensacola ADI is ranked 61st and contains 11 TV stations. 5. Third, with respect to the number of other media WKRG also states that there are 21 AM stations and 20 FM outlets the applicant already owns in the relevant market, stations currently licensed to communities in the Mobile- WKRG affirms that, other than WKRG-TV. WKRG-FM Pensacola TV metro market.
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