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A station's market for this purpose is its "area of dominant influence," or ADI, as defined by  Y -the Arbitron audience research organization.a  F Y:-ԍ #Xw PE37=9XP#Section 4 of the 1992 Cable Act specifies that a commercial broadcasting station's market shall be determined in the manner provided in 73.3555(d)(3)(i) of the Commission's Rules, as in effect on May 1, 1991. This section of the rules, now redesignated 73.3555(e)(3)(i), refers to Arbitron's ADI for purposes of the broadcast multiple ownership rules. Section 76.55(e) of the Commission's Rules provides that the ADIs to be used for purposes of the initial implementation of the mandatory carriage rules are those published in  Y-Arbitron's 19911992 Television Market Guide.#x6X@`7>FX@# An ADI is a 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 homemarket stations receive a preponderance of total viewing hours in the county. For purposes  Yg-of this calculation, both overtheair and cable television viewing are included.3g F Y -ԍ #Xw PE37=9XP#Certain counties are divided into more than one sampling unit because of the topography involved. Also, in certain circumstances, a station may have its home county assigned to an ADI even though it receives less than a preponderance of the audience in that  Y"-county. Refer to Arbitron's Description of Methodology handbook for a more complete  Y#-description of how counties are allocated.#x6X@`7>FX@#3 3. Under the Act, however, the Commission is also directed to consider changes in ADI areas. Section 614(h) provides that the Commission may: " F0*(("ԌXxwith respect to a particular television broadcast station, include additional communities within its television market or exclude communities from such station's television market to better effectuate the purposes of this section.  In considering such requests, the 1992 Cable Act provides that: Xxthe Commission shall afford particular attention to the value of localism by taking into account such factors as:  Xx(I) whether the station, or other stations located in the same area, have been historically carried on the cable system or systems within such community;  Xx(II) whether the television station provides coverage or other local service to such community;  Xx(III) whether any other television station that is eligible to be carried by a cable system in such community in fulfillment of the requirements of this section provides news coverage of issues of concern to such community or provides carriage or coverage of sporting and other events of interest to the community; and  Xx(IV) evidence of viewing patterns in cable and noncable households within the areas served by the cable system or systems in such community.  4. The legislative history of this provision indicates that: Xxwhere the presumption in favor of ADI carriage would result in cable subscribers losing access to local stations because they are outside the ADI in which a local cable system operates, the FCC may make an adjustment to include or exclude particular communities from a television station's market consistent with Congress' objective to ensure that television stations be carried in the areas which they serve and which form their economic market.  * * * * * Xx[This subsection] establishes certain criteria which the Commission shall  Y -consider in acting on requests to modify the geographic area in which stations have signal carriage rights. These factors are not intended to be exclusive, but may be used to demonstrate that a community is part of a particular station's  Y#-market.# F Y%-ԍ #Xw PE37=9XP# H.R. Rep. 102628, 102d Cong., 2d Sess. at 97 (1992). #x6X@`7>FX@#Ѯ  "h$y0*((%"Ԍ Y- 5. The Commission provided the following guidance in the Report and Order to aid decision making in these matters: XxFor example, the historical carriage of the station could be illustrated by the  Y-submission of documents listing the cable system's channel lineup (e.g., rate cards) for a period of years. To show that the station provides coverage or other local service to the cable community (factor 2), parties may demonstrate that the station places at least a Grade B coverage contour over the cable community or is located close to the community in terms of mileage. Coverage of news or other programming of interest to the community could be demonstrated by program logs or other descriptions of local program offerings. The final factor concerns viewing patterns in the cable community  Y -in cable and noncable homes. Audience data clearly provide appropriate evidence about this factor. In this regard, we note that surveys such as those used to demonstrate significantly viewed status could be useful. However, since this factor requires us to evaluate viewing on a community basis for cable and noncable homes, and significantly viewed surveys typically measure  Y{-viewing only in noncable households, such surveys may need to be  Yd-supplemented with additional data concerning viewing in cable homes.d F Y-ԍ #Xw PE37=9XP#8 FCC Rcd at 2977 (emphasis in original).#c PE37P#ѡ   Y6- 6. In adopting rules to implement this provision, the Commission indicated that requested changes should be considered on a communitybycommunity basis rather than on a countybycounty basis, and that they should be treated as specific to particular stations rather than  Y-applicable in common to all stations in the market. y F Y-ԍ #c PE37P##Xw PE37=9XP#Id. and n. 139.#x6X@`7>FX@# The rules further provide, in accordance with the requirements of the 1992 Cable Act, that a station not be deleted from carriage  Y-during the pendency of an ADI change request. , F Y-ԍ #Xw PE37=9XP#47 C.F.R. 76.59. #x6X@`7>FX@#э 7. Adding communities to a station's ADI generally entitles that station to insist on cable carriage in those communities. However, this right is subject to several conditions: 1) a cable system operator is generally required to devote no more than onethird of the system's activated channel capacity to compliance with the mandatory signal carriage obligations; 2) the station is responsible for delivering a good quality signal to the principal headend of the system; 3) indemnification may be required for any increase in copyright liability resulting from carriage; and 4) the system operator is not required to carry the signal of any station whose signal substantially duplicates the signal of any other local signal carried, or the signal of more than one local station affiliated with a particular broadcast network. If, pursuant to these requirements, a system operator elects to carry the signal of only one such duplicating signal, the operator is obliged to carry the station from the ADI whose city of license is"! 0*((""  Y-closest to the principal headend of the cable system. F Yy-ԍ #Xw PE37=9XP# 8 FCC Rcd at 2981.#c PE37P#ъ Accordingly, based on the specific circumstances involved, the addition of communities to a station's ADI may guarantee it cable carriage and specific channel position rights, or may simply provide the system  Y-operator with an expanded list of mustcarry signals from which to choose (i.e., when the system has used up its channel capacity mandated for broadcast signal carriage, or determined which of duplicating network affiliated stations are entitled to carriage priority).  i   i   YH-  MARKET FACTS AND ARGUMENTS OF THE PARTIES  Y2- 8. WTXX is an independent television station licensed to Waterbury, Connecticut, which is part of the HartfordNew Haven area of dominant influence ("ADI"). Each of the communities that WTXX seeks to include is in Fairfield County, Connecticut, the only county in that state assigned to the New York ADI, rather than the HartfordNew Haven ADI. 9. According to petitioner, the station signed ontheair on September 4, 1953. It was acquired by WTXX Communications in March 1993 and became a parttime affiliate of the Home Shopping Network at that time. While WTXX initially dedicated about 60% of its broadcast week to a home shopping format, that percentage of programming dropped to less  Y5-than 50% on May 17, 1993, to ensure WTXX's continued cable carriage during the pendency of the Commission's rulemaking to determine whether such stations were entitled  Y-to mustcarry status.. 5y F Y1-ԍ Both the petitioner and opposition raise issues relating to WTXXTV's rights of carriage due to its home shopping format. After WTXX filed its petition, the Commission determined that stations broadcasting shopping formats would be treated like any other  Y-commercial television station for mustcarry purposes. See Report and Order in MM Docket  Y-938 (Home Shopping Station Issues), 8 FCC Rcd 5321 (1993). In addition, WTXX incorporates in this petition a request for stay to prevent Storer Cable of New Haven from dropping its station because of its format. This request and the arguments regarding the status of home shopping stations are now moot and will not be considered any further in this analysis.. 10. WTXX states that each of the cable systems in question has carried its signal for at  Y-least ten years.< v F Y#-ԍ WTXX notes a controversy associated with Cablevision's announcement that it was dropping all the HartfordNew Haven ADI stations from its Fairfield County cable system lineups. At the time the petition was filed, however, Cablevision stated it would continue to carry all HartfordNew Haven ADI stations except WTXX. Subsequently, in its July 1 comments, WTXX states that it has retained carriage on all the named systems except"' 0*(('"  Y-Comcast Cablevision of Danbury. < WTXX also includes a coverage map that shows that its station places a"y 0*((" Grade B or better signal over all of Fairfield County and a Grade A signal over most of the  Y-County's cable systems. It notes that the majority of Fairfield County lies within 35 miles of WTXX's city of license and, therefore, the station was considered local under the Commission's previous mustcarry rules and is local for copyright compulsory license purposes. WTXX also asserts that it is considered significantly viewed in Fairfield County. 11. The petitioner further contends that it offers a diverse mix of programming of interest to viewers in Connecticut. In particular, it asserts that it is developing a nightly halfhour newscast that will focus on news impacting the state's residents. WTXX cites its acquisition of the exclusive Connecticut rights for the program, "NEWS AMERICA," which will  Y -provide an additional national news source beginning in the Fall of 1993._ y F YD -ԍ WTXX further notes that it has acquired the rights to broadcast several award winning shows which it plans to follow with locallyproduced commentary programs. The petitioner names "TALE OF THREE CITIES" (a look at the turbulent lives of urban Americans) and "THE HERO" (a look at the issue of drunk driving) as examples of such programs it has already aired and "STORY OF A PEOPLE," "THE OTHER SIDE OF VICTORY" and "MENTAL SOUP" (a new teen educational program) planned for broadcast this year. WTXX claims that the New York stations do not provide adequate local service to Connecticut residents due to the size of the market and the small percentage of the total area that Fairfield County represents. WTXX also argues that as it adds more syndicated and original programming, it will look to Fairfield County advertisers for revenue. WTXX believes that it will attract these advertisers because its advertising time will be less expensive than that of the New York City stations. 12. WTNH and Cablevision, in separate oppositions, argue that the current WTXX is a different station than that which has been historically carried by the Fairfield County cable  Y4-systems.4 F Y-ԍ Cablevision indicates that WTXX has been carried on its Norwalk system since August 1982 and its Bridgeport system since August 1983; this is consistent with the petitioner's claim to historical carriage on these systems. Cablevision maintains that there have been two WTXXs. Under the previous owner, WTXX was a station that carried a variety of popular programming and the weekly "Connecticut Viewpoint"; today, the station is just a Home Shopping Network affiliate. As such, the parties argue that historical carriage should not be afforded much weight in  Y-considering this request due to the significant changes in programming since 1993. 13. With respect to local coverage or other service, WTNH argues that the significantly viewed status of WTXX is irrelevant since the historical data used to determine this status is outdated given the station's recent format change. WTNH and Cablevision note that WTXX describes its station's nonentertainment programming and programming of interest as"e# 0*((N" generally applicable to all Connecticut residents; in their view, this description is insufficient and does not meet the requirement that parties provide information regarding the broadcast of  Y- county or communityspecific programming. Cablevision argues that petitioner provides no evidence that its programming currently addresses, or that the proposed newscast will address, issues specifically directed to Fairfield County viewers. Both opposing parties also note that the planned newscast will also be provided by WVIT, another station licensed to the HartfordNew Haven ADI and one that Cablevision indicates it will continue to carry  Y_-assuming it receives retransmission consent._ F Y-ԍ WTNH includes in its filing a story from the NEW HAVEN REGISTER (June 10, 1993 edition) regarding this matter. While WTXX argues that the New York stations do not provide adequate programming of local interest for Fairfield County residents, WTNH and Cablevision contend that the petitioner fails to comment on the significant amount of Connecticutoriented programming provided by the other stations licensed in the HartfordNew Haven ADI which are currently carried on the cable systems. Cablevision further asserts that its Fairfield County systems plan to continue carriage of these other stations, which not only provide programs of general state interest, but also broadcast some programming of specific interest to Fairfield County such as University of Connecticut  Y -sports, public affairs, local talk shows and state lottery drawings. b F Y-ԍ To support its statement, Cablevision submits Connecticut program guides for the week of April 2430, 1993. Finally, these parties state that WTXX's request should be rejected because the petitioner has failed to submit  Yy-viewing data beyond a reference to its significantly viewed status in Fairfield County.vy F Y&-ԍ In this regard, WTNH submits selected audience data that demonstrate that WTXX captures a limited audience in its own television market. The submitted data show that WTXX generally attains a 1 rating and between a 3 and 4 share for its weekday schedule in the HartfordNew Haven DMA (dominant market area), the Nielsen equivalent of the ADI. WTNH also shows that WTXX received a 2 share in Fairfield County prior to its format change.  14. In reply, WTXX contends that its affiliation with the Home Shopping Network and its change of ownership does not render it ineligible for mustcarry status. It repeats that WTXXTV has been historically carried by the Fairfield County cable systems and places at least a Grade B signal over the affected communities. WTXX argues that because Cablevision admits that the historical carriage of the station was based on a long history of providing educational and informational programming, it therefore "meets the second and fourth prongs of the Section 614 test." In this submission, WTXX cites recent programming that it claims have "a direct local focus" and reiterates the public service aspect of its programming in terms of its interest to Connecticut state residents.  i   i "N: 0*((M"Ԍ Y- ANALYSIS AND DECISION ă 15. WTXX has justified modifying its ADI to include the Fairfield County communities named in the petition for special relief. At the outset, based on the general geography and market structures implicated, it is evident that the requested change would involve a preferable allocation of the area in question between the markets and would "better effectuate the purposes" of the applicable statutory provisions. The majority of Fairfield County communities are no more that 35 miles from Waterbury, CT, WTXX's city of license and the furthest Fairfield County community named in the petition is no more than 50 miles from Waterbury. Moreover, with the HartfordNew Haven ADI abutting Fairfield County to the south, WTXX appears closer to Fairfield County than stations licensed in the New York ADI. Turning to the factors specified in the 1992 Cable Act, we find that WTXX has sufficiently satisfied the statutory requirements with its local coverage element being particularly notable. 16. WTXX demonstrates that it meets the historical carriage requirement with respect to apparently all cable systems operating in Fairfield County. The fact that each of the cable operators has carried WTXX for at least 10 years signifies its ties to the Fairfield County communities. We do not agree with the opposition that the recent change in ownership and format negate the fact that the station has been traditionally carried by these cable operators. In particular, we note that, even when these changes took place, the systems generally did  Y-not drop the station. F Y-ԍ The ownership change occurred while our proceeding to implement the mustcarry provisions of the Cable Act was pending. However, since WTXX was licensed to a community outside the ADI to which Fairfield County is assigned, the cable operators were aware that the station would not be considered local even under the new rules since the market definition was derived from the 1992 Cable Act.  We also conclude that WTXX satisfies the coverage element of the statutory test since all the named communities fall within this station's Grade B contour and  Y-most within its Grade A contour.F F Y-ԍ See 8 FCC Rcd at 2981.F With regard to the content of WTXX's programming, the Commission found that home shopping formats are not incompatible with local appeal and recognize that such specialty programming traditionally has drawn smaller audiences. The Commission has specifically affirmed that home shopping stations may serve the public interest because, among other reasons, they provide "an important service to viewers who either have difficulty obtaining or do not otherwise wish to purchase goods in a more  Yf-traditional manner."f F Y#-ԍ #Xw PE37=9XP#See Home Shopping Station Issues, 8 FCC Rcd 5321, 5327 (1993), reconsideration  Y$-pending.#c PE37P#  Y8-  i "8n 0*((="Ԍ  i 17. As for viewing pattern data in cable and noncable households, we note that the  Y-station has a 2 share and 30 net weekly circulation.x F Yb-ԍ #Xw PE37=9XP#See Arbitron's Television County Coverage for 1993. These data are countybased, rather than communityspecific. However, absent evidence that such data are not fairly reflective of viewing in the actual communities in question, such data are acceptable as probative, although not conclusive, in cases of this type. x  We find any arguments regarding WTXX's lack of ratings to be unpersuasive. We have previously recognized that stations with limited audiences, once referred to as specialty stations, are capable of "offer[ing]  Y-desirable diversity of programming . . . ," yet typically attract limited audiences. F Y] -ԍ #Xw PE37=9XP#First Report and Order in Docket 20553, 58 FCC 2d 442, 452 (1976), recon. denied,  YH -60 FCC 2d 661 (1976).#x6X@`7>FX@# The fact that specialty stations, and those akin to them such as home shopping stations, attract smaller audience shares, is properly taken into account in determining the equities concerning a station's right to cable carriage. In this instance, we believe that the audience share figure, while not the strongest factor, when taken as a whole with Fairfield County's geographic location, Grade B contour coverage and historical carriage, warrants a grant of the requested change.  i   i 18. With respect to the third statutory factor, we note that WTXX does not fully discuss the amount and kind of programming New York ADI stations provide to the Fairfield County communities. We do not believe that Congress intended 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. Under such circumstances, a denial of carriage rights to the claiming station could deprive cable viewers of any broadcast signals that might provide programming geared to their communities.i   Y-x: ORDER ă 19. In view of the foregoing, we find that grant of Counterpoint Communications, Inc.'s  Y-petition is in the public interest.  Y}- 20. Accordingly, IT IS ORDERED , pursuant to Section 614(c) of the Communications Act of 1934, as amended (47 U.S.C. 534) and 76.59 of the Commission's Rules (47 C.F.R. 76.59), That the captioned petition for special relief filed May 11, 1993, by WTXX  Y9-Communications, Inc., IS GRANTED . "# 0*(("Ԍ Y- 21. IT IS FURTHER ORDERED that WTXX's television market is modified to include all Fairfield County communities served by Cablevision of Connecticut, Cablevision of Southern Connecticut, Comcast Cablevision of Danbury, TeleMedia of Western Connecticut, and Crown Houstatonic Cablevision. The station shall notify the cable systems  Y-in question in writing of its carriage and channel position elections, (76.56, 76.57, 76.64(f) of the Commission's Rules), within thirty (30) days of the release date of this  Yw-Memorandum Opinion and Order. The affected cable systems shall come into compliance with the applicable rules within sixty (60) days of such notification. 22. This action is taken pursuant to authority delegated by 0.321 of the Commission's Rules.  i   i  x` ` P P hh FEDERAL COMMUNICATIONS COMMISSION  Y - x` ` P P  hh i   i William H. Johnson x` ` P P  hh  i! Deputy Chief, Cable Services Bureau