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File how2ftp (.txt & .wp) is in directory /pub/Bureaus/Miscellaneous/Public_Notices/ ***************************************************************** ******** $//MO&O Grant of WTLW(TV) ADI petition DA 96-348 $/76.7 Special relief & must carry complaint procedures/$ $/76.59 Modification of television markets/$ Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 DA 96-348 In re Petition of ) ) American Christian Television Services ) CSR-4018-A ) For Modification of ADI Market of ) Station WTLW(TV), Lima, Ohio ) MEMORANDUM OPINION AND ORDER Adopted: March 11, 1996 Released: March 22, 1996 By the Deputy Chief, Cable Services Bureau: INTRODUCTION 1. American Christian Television Services ("ACTS") filed the above-captioned petition for special relief pursuant to 47 C.F.R.  76.7 and 76.59, requesting that the television market of television station WTLW(TV) (Channel 44, Lima, Ohio) ("WTLW(TV)") be modified to include those communities in Hancock County, Ohio listed in the margin. The petition, which was placed on public notice under the referenced file number, shows service on Continental Cablevision and numerous other persons and governmental entities located in these and neighboring communities. However, no opposition to the petition has been filed. BACKGROUND 2. Pursuant to Section 614 of the Communications Act (Section 4 of the 1992 Cable Act) and implementing rules adopted by the Commission in its Report and Order in MM Docket 92-259, commercial television broadcast stations are entitled to assert mandatory carriage rights on cable systems located within the station's market. A station's market for this purpose is its "area of dominant influence" or ADI as defined by the Arbitron audience research organization. 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 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. 3. Under the Act, however, the Commission is also directed to consider changes in market areas. Section 614(h)(1)(C) provides that the Commission may: with 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 Act provides that: the Commission shall afford particular attention to the value of localism by taking into account such factors as -- (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; (II) whether the television station provides coverage or other local service to such community; (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 (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: where 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. * * * * * [This subsection] establishes certain criteria which the Commission shall 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 market. 5. The Commission provided guidance in its Report and Order in MM Docket 92-259, supra, to aid decision making in these matters, as follows: For example, the historical carriage of the station could be illustrated by the submission of documents 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 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 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 viewing only in noncable households, such surveys may need to be supplemented with additional data concerning viewing in cable homes. 6. In adopting rules to implement this provision, the Commission indicated that changes requested should be considered on a community-by-community basis rather than on a county-by-county basis and that they should be treated as specific to particular stations rather than applicable in common to all stations in the market. The rules further provide, in accordance with the requirements of the Act, that a station not be deleted from carriage during the pendency of a market change request. 7. Adding communities to a station's market 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 one-third of its 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 signals 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 a single affiliate of a broadcast network, it is obliged to carry the affiliate from within the market whose city of license is closest to the principal headend of the cable system. Accordingly, based on the specific circumstances involved, the addition of communities to a station's market may guarantee it cable carriage and specific channel position rights; simply provide the system operator with an expanded list of must-carry signals from which to choose, i.e., when it has used up its channel capacity mandated for broadcast signals carriage, or determined which of duplicating network affiliated stations are entitled to carriage priority. Also, the removal of a community from a station's ADI will defeat a station's cable carriage and channel position rights on a cable system serving the community. MARKET FACTS AND ARGUMENTS OF THE PARTIES 8. The petition shows that Station WTLW(TV) (Channel 44), Lima, Ohio, is an independent television station located in Allen County, Ohio, which is the sole county comprising the Lima, Ohio ADI. The communities that ACTS seeks to add to WTLW(TV)'s local market are all located in Hancock County, Ohio, which is adjacent to Allen County but in the Toledo, Ohio ADI. For that reason WTLW(TV) is not considered a local signal in Hancock County for must-carry purposes, although WTLW(TV) places a predicted Grade B coverage over the communities at issue, including Findlay, Ohio, the largest community in Hancock County. ACTS asserts that the market served by WTLW(TV) extends well beyond the small area defined as the Lima ADI. ACTS has provided with its petition considerable data and information for the purpose of demonstrating that this case presents a classic example of a situation where the current ADI is an inappropriate measure of WTLW(TV)'s local market. 9. ACTS states that WTLW(TV) has been carried for many years on the cable system of Continental Cablevision which serves that listed communities in Hancock County. The petition lists numerous examples of WTLW(TV) programming designed to serve the particular needs and interests of the residents of those communities. These programs include "Turning Point," a thirty minute magazine program aired twice daily; "Straight Talk," a sixty minute program geared toward teenagers aired weekly; coverage of sporting events occurring in schools in the Hancock County communities; and public service spots that show case various civic activities occurring within those communities. 10. ACTS asserts that the market share rating for WTLW(TV) in Hancock County is 3, allegedly the highest in that county for any independent television station. It also claims a combined audience share in Hancock County for all Lima television stations of 8. ACTS alleges that 33 percent of WTLW(TV)'s viewers are located in the Toledo ADI, with most of these viewers residing in Hancock County. It states that, although WTLW(TV) is licensed as a commercial station, the station operates on a non-commercial basis and received approximately 18.5 percent of its financial support in 1992 from contributors located in Hancock County, according to ACTS. ANALYSIS AND DECISION 11. We find that ACTS has demonstrated in its unopposed petition that the public interest will be served by modifying the Lima, Ohio ADIs so as to include those communities listed in footnote 1 above within the television market for station WTLW(TV). In reaching this conclusion, we have considered each of the statutory factors under which the value of WTLW(TV) to the Hancock County communities is to be tested for localism. WTLW(TV) has a strong viewing presence in these communities, has been carried on the cable system serving these communities for many years, offers substantial programming specifically for these communities, and provides over-the air signal coverage of them as well. For the foregoing reasons, we find that grant of ACTS's petition is in the public interest. Therefore, the Lima, Ohio ADI will be modified to include the communities listed in footnote 1 above within the television market of Station WTLW(TV), Lima, Ohio. ORDER 12. Accordingly, IT IS ORDERED, pursuant to 614(h)(1)(C) of the Communications Act of 1934, as amended, 47 U.S.C. 534(h)(1)(C), and 76.59 of the Commission's Rules, 47 C.F.R. 76.59, that the petition for special relief filed by American Christian Television Services in File No. CSR-4018-A IS GRANTED as indicated in paragraph 11 above. 13. This action is taken pursuant to authority delegated by Section 0.321 of the Commission's Rules, 47 C.F.R. Section 0.321. FEDERAL COMMUNICATIONS COMMISSION William H. Johnson Deputy Chief, Cable Services Bureau