10 FCC Red No. 16 Federal Communications Commission Record DA 95-1628

3. Under the Act, however, the Commission is also di Before the rected to consider changes in ADI areas. Section 614(h) Federal Communications Commission provides that the Commission may: Washington, D.C. 20554 with respect to a particular television broadcast sta In re: tion, include additional communities within its tele vision market or exclude communities from such VSC Communications Inc., CSR-4099-A station©s television market to better effectuate the Shreveport, LA purposes of this section.

For Modification of Television In considering such requests, the Act provides that: Broadcast Station KSLA©s AOI the Commission shall afford particular attention to the value of localism by taking into account such MEMORANDUM OPINION AND ORDER factors as- (I) whether the station, or other stations located in Adopted: July 20,1995; Released: August 1,1995 the same area, have been historically carried on the cable system or systems within such community; By the Cable Services Bureau: (II) whether the television station provides coverage or other local service to such community; INTRODUCTION (III) whether any other television station that is eli 1. VSC Communications Inc. ("KSLA"), licensee of tele gible to be carried by a cable system in such commu vision station KSLA-TV, Shreveport. Louisiana (CBS. chan nity in fulfillment of the requirements of this section nel 12), has filed the captioned petition for special relief provides news coverage of issues of concern to such seeking to include communities in Gregg and Rusk Coun community or provides carriage or coverage of sport ties, Texas within the Shreveport-Texarkana. Louisiana ing and other events of interest to the community; "area of dominant influence" ("ADI") for purposes of the and cable television mandatory broadcast signal carriage rules. 1 (IV) evidence of viewing patterns in cable and No oppositions to this petition have been filed. The peti noncable households within the areas served by the tioner filed letters supplementing its request on June 8, cable system or systems in such community.6 1995 arid June 28. 1995. 4. The legislative history of this provision indicates that: BACKGROUND ADI carriage 2. Pursuant to Section 4 of the Cable Television Con where the presumption in favor of sumer Protection and Competition Act of 1992 ("1992 would result in cable subscribers losing access to Cable Act")2 and implementing rules adopted by the Com local stations because they are outside the ADI in mission in its Report and Order, Docket 92-2S9,3 commer which a local cable system operates, the FCC may cial television broadcast stations are entitled to assert man make an adjustment to include or exclude particular systems located within the communities from a television station©s market con datory carriage rights on cable ensure that televi station©s market. A station©s market for this purpose is its sistent with Congress© objective to "area of dominant influence" or ADI as defined by the sion stations be carried in the areas which they serve Arbitron audience research organization.4 An ADI is a and which form their economic market. geographic market designation that defines each television market exclusive of others, based on measured viewing patterns. Essentially, each county in the United States is allocated to a market based on which home-market stations receive a preponderance of total viewing hours in the county. For purposes of this calculation, both over-the-air and cable television viewing are included.5

1 See Appendix A for a list of the communities at issue in this used for purposes of the initial implementation of the man proceeding ("the Communities"). datory carriage rules are those published in Arbitron©s 5 Pub. L. No. 102-385, 106 Stat. 1460 (1992). 1991-1992 Television Market Guide. 3 Report and Order, MM Docket 92-259, 8 FCC Red 2965, 5 Because of the topography involved, certain counties are 2976-2977 (1993) ("Must Carry Order"). divided into more than one sampling unit. Also, in certain 4 Section bl4(h)(l)(C) of the 1992 Cable Act specifies that a circumstances, a station may have its home county assigned to broadcasting station©s market shall be determined in the man an ADI even though it receives less than a preponderance of the ner provided in Section 73.3555(d)(3)(i) of the Commission©s audience in that county. For a more complete description of Rules, as in effect on May 1, 1991. This section of the rules, now how counties are allocated, see Arbitron©s Description of Meth redesignated Section 73.3555(e)(3)(i), refers to Arbitron©s ADI odology. for purposes of the broadcast multiple ownership rules. Section 6 Communications Act of 1934, as amended, § 614 (h)(l)(C)(ii), 76.55(e) of the Commission©s Rules provides that the ADIs to be 47 U.S.C. § 534(h)(l)(C)(ii).

8227 DA 95-1628 Federal Communications Commission Record 10 FCC Red No. 16

* * * * * station whose signal substantially duplicates the signal of any other local signal carried or the signals of more than [This subsection] establishes certain criteria which the one local station affiliated with a particular broadcast net Commission shall consider in acting on requests to work. If, pursuant to these requirements, a system operator modify the geographic area in which stations have elects to carry the signal of only a single affiliate of a signal carriage rights. These factors are not intended broadcast network, it is obliged to carry the affiliate from to be exclusive, but may be used to demonstrate that within the ADI whose city of license is closest to the a community is part of a particular station©s market.7 principal headend of the cable system." Accordingly, based on the specific circumstances involved, the addition of communities to a station©s ADI may guarantee it cable 5. The Commission provided guidance in its Report and ©carriage and specific channel position rights: simply pro Order in Docket 92-259, supra, to aid decision making in vide the system operator with an expanded list of must- these matters, as follows: carry signals from which to choose, i.e., when it has used up its channel capacity mandated for broadcast signals For example, the historical carriage of the station carriage, or determined which of duplicating network affili could be illustrated by the submission of documents ated stations are entitled to carriage priority. listing the cable system©s channel line-up (e.g., rate cards) for a period of years. To show that the station provides coverage or other local service to the cable MARKET FACTS AND PETITIONER©S ARGUMENTS community (factor 2), parties may demonstrate that 8. The communities at issue in this proceeding are lo the station places at least a Grade B coverage contour cated in Gregg and Rusk Counties, Texas, which are part of over the cable community or is located close to the the Tyler-Longview-Jacksonville, Texas ADI. KSLA is lo community in terms of mileage. Coverage of news or cated in Shreveport, Louisiana in the Shreveport-Texar- other programming of interest to the community kana, Louisiana ADI. Gregg and Rusk Counties are could be demonstrated by program logs or other contiguous to each other and border the Shreveport-Texar- descriptions of local program offerings. The final fac kana ADI to the southwest. The petitioner states that Gregg tor concerns viewing patterns in the cable commu and Rusk Counties were previously included in the Shreve- nity in cable and noncable homes. Audience data port-Texarkana ADI. In its petition, KSLA asks the Com clearly provide appropriate evidence about this fac mission to modify the Shreveport-Texarkana ADI to tor. In this regard, we note that surveys such as those include communities in Gregg and Rusk Counties for pur used to demonstrate significantly viewed status could poses of the cable television mandatory broadcast signal be useful. However, since this factor requires us to carriage rules. evaluate viewing on a community basis for cable and 9. KSLA asserts that it satisfies each of the four market noncable homes, and significantly viewed surveys modification criteria set forth in the 1992 Cable Act and typically measure viewing only in noncable house the Commission©s rules. The petitioner states that it has holds, such surveys may need to be supplemented been historically carried on the various cable systems serv with additional data concerning viewing in cable ing the Communities. Specifically, KSLA indicates that it homes.8 has been historically carried on cable systems serving all of the communities in Gregg County. 12 With respect to Rusk 6. In adopting rules to implement this provision, the County, the petitioner states that the largest cable systems Commission indicated that changes requested should be in the county historically have carried KSLA. U The peti considered on a community-by-community basis rather tioner acknowledges, however, that Friendship Cable of than on a county-by-county basis and that they should be Texas-East, serving Price and Reklaw, Texas does not carry treated as specific to particular stations rather than ap KSLA. The petitioner maintains that it provides coverage plicable in common to all stations in the market.9 The and local service, including news, weather and sports cov rules further provide, in accordance with the requirements erage, to the Communities. KSLA provides Grade B con of the Act, that a station not be deleted from carriage tour coverage to all of the communities in Gregg County during the pendency of an ADI change request. 10 and to the communities at issue in Rusk County, with the 7. Adding communities to a station©s ADI generally en exception of Reklaw.14 The petitioner points out that the titles that station to insist on cable carriage in those com largest city in the two counties, Longview in Gregg County, munities. However, this right is subject to several is within the station©s Grade A contour. In addition, the conditions: 1) a cable system operator is generally required petitioner provides a list of over 100 specific news stories to devote no more than one-third of its activated channel aired between 1990 and 1993 which, it claims, either cov capacity to compliance with the mandatory signal carriage ered events in Gregg County, Rusk County, or were of obligations, 2) the station is responsible for delivering a importance to residents of East Texas generally. The peti good quality signal to the principal headend of the system, tioner adds that Gregg and Rusk Counties are included in 3) indemnification may be required for any increase in KSLA©s daily weather coverage and that the station covers copyright liability resulting from carriage, and 4) the sys high school sporting events in the two counties. In addi tem operator is not required to carry the signal of any tion, the petitioner asserts that it has aired several features

7 H.R. Rep. No. 628, 102d Cong., 2d Sess. at 97 (1992). 10 47 C.F.R. § 76.59. 8 Id. at 2977 (emphasis in original). 11 Must Carry Order, 8 FCC Red at 2981. 9 Must Carry Order, 8 FCC Red at 2977, n.139. 12 See Appendix A. 13 Id. 14 Television and Cable Factbook, Vol. 62, p. A-559 (1994).

8228 10 FCC Red No. 16 Federal Communications Commission Record DA 95-1628 on businesses which are based in Gregg County or Rusk ing share of 15 and a net weekly circulation of 79 and, in County. As to the issue of whether other stations entitled Rusk County, the station receives a total viewing share of to mandatory carriage provide local coverage to the com 17 and a net weekly circulation of 80. l7 munities in question, KSLA contends that it is the only 11. KSLA has failed to support its request for market CBS affiliate effectively serving the Communities. The peti modification with respect to the community of Reklaw in tioner explains that KSLA became the "de facto" CBS Rusk County, Texas. The cable system serving Reklaw, has affiliate for the Communities after former CBS affiliate, not carried KSLA historically and the station©s Grade B KLMG(TV) in Longview, Gregg County, dropped its CBS contour does not encompass Reklaw. Because this commu affiliation in 1991 due to the strength of KSLA and KSLA©s nity is in an area that is approaching the core of the viewership in Gregg and Rusk Counties. The petitioner Tyler-Longview-Jacksonville market area (being almost di maintains that because of its signal coverage and the fact rectly between Jacksonville and Lufkin, another commu that it is the only nearby CBS affiliate, KSLA achieves high nity of license in the market), it is particularly important viewership ratings. KSLA argues that local viewing patterns the requested change not be granted with respect to this justify inclusion of the Communities in the Shreveport- community unless fully jusitified based on the applicable Texarkana ADI. The petitioner submits Arbitron cable factors. Therefore, we deny the petitioner©s request to in county and noncable county coverage reports for clude Reklaw within the Shreveport-Texarkana ADI. 1993-1994, 1992-93, and 1991-92 which, it contends, dem onstrate that the station achieves high ratings in cable and noncable homes in both Gregg and Rusk Counties. The ORDER petitioner also asserts that KSLA is significantly viewed in 12. In view of the foregoing, we find that grant of Gregg and Rusk Counties. KSLA©s petition with respect to all of the communities in question, excluding Reklaw in Rusk County, Texas, is in the public interest. ANALYSIS AND DECISION 13. Accordingly, IT IS ORDERED, pursuant to Section 10. We shall grant KSLA©s petition with respect to all of 614(h)(l)(C) of the Communications Act of 1934. as the communities in question except for Reklaw in Rusk amended, (47 U.S.C. 534(h)(l)(C)) and Section 76.59 of the County, Texas. KSLA has presented sufficient evidence re Commission©s Rules (47 CFR Section 76.59), that the peti garding all of the Communities, except for Reklaw, that its tion for special relief (CSR-4099-A), filed September 2, request for market modification complies with the four 1993 by VSC Communications Inc. IS GRANTED to the statutory elements. The station has been continuously car extent indicated in paragraph 12, supra, and in all other ried on cable systems serving most of the Communities respects IS DENIED. KSLA shall notify the relevant cable since 1986 or 1989.15 Although KSLA has not been carried systems in writing of its carriage and channel position historically on the cable system serving the community of elections, (§§76.56, 76.57, 76.64(f) of the Commission©s Price in Rusk County, Texas, we find that the combination Rules), within thirty (30) days of the release date of this of other factors, such as Grade B contour coverage and Memorandum Opinion and Order. The affected cable sys substantial viewership. makes the case for inclusion of tems shall come into compliance with the applicable rules Price in the Shreveport-Texarkana ADI. KSLA places a within sixty (60) days of such notification. Grade B contour over all of Gregg County and most of Rusk County, including Price, and a Grade A contour over 14. This action is taken by the Cable Services Bureau Longview. the largest city in the two counties. With respect pursuant to authority delegated by §0.321 of the Commis to local service, KSLA has demonstrated that it provides sion©s rules. locally-oriented programming to the Communities. A list of over 100 news stories aired between 1990 and 1993 FEDERAL COMMUNICATIONS COMMISSION covering events in Gregg County, Rusk County or East Texas generally supports this conclusion. It also appears that KSLA is the only CBS affiliate serving Rusk County and the most watched CBS affiliate, by far, in Gregg Coun ty. 16 While stations other than KSLA may offer local William H. Johnson programming to the Communities, we do not believe that Deputy Chief, Cable Services Bureau Congress intended for the third criterion to operate as a bar to a station©s ADI claim whenever other stations could also be shown to serve the communities at issue. Rather, we believe that this criterion was intended to enhance a station©s claim where it could be shown that other stations do not serve the communities at issue. As to viewing patterns, the most recent Arbitron county coverage reports (1993-94) confirm KSLA©s assertion that it achieves sub stantial viewership. They show that KSLA is the second most watched station in both Gregg and Rusk Counties. Specifically, in Gregg County, KSLA garners a total view

15 See Appendix A. 17 Id. 16 Arbhron©s 1993-1994 Television County Coverage (Stan 18 The Communities also remain within the Tyler-Longview- dard/Fringe- including both cable and noncable viewing): Texas. Jacksonville, Texas ADI.

8229 DA 95-1628 Federal Communications Commission Record 10 FCC Red No. 16

Appendix A Historic County Cable System Carriage Communities

Gregg. TX Gladewater- 1986 Gladewater, Clarksville City White-Oak Cable TV and White Oak Cablevision Inc. 1989 Liberty City, Warren City, and Union Grove Longview Cable 1986 Longview TV Co.

Friendship Cable 1991 Gladewater, Kilgore of Texas-East 1992 Lansing

Friendship Cable 1986 Lakeport, Elderville, and of Texas-East or Lake Cherokee Galaxy Cablevision

Kilgore Cable 1986 Kilgore TV Co.

Rusk. TX Henderson Cable TV 1986 Henderson and surrounding unincorporated areas of Rusk County

Galaxy Cablevision 1986 Lake Cherokee, Overton, and Tatum

1992 Laneville

Friendship Cable 1991 Kilgore of Texas-East

Price and Reklaw*

* KSLA is not carried to these two communities. The communities of Price and Reklaw are served by Friendship Cable of Texas-East.

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