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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In re: ) ) NEXSTAR BROADCASTING ) GROUP, L.P. ) ) CSR-4920-M v. ) ) RIVER VALLEY CABLE TV ) Williamsport, Pennsylvania ) ) Request for Mandatory Carriage ) MEMORANDUM OPINION AND ORDER Adopted: May 30, 1997 Released: June 3, 1997 By the Chief, Consumer Protection and Competition Division, Cable Services Bureau: INTRODUCTION 1. Nexstar Broadcasting Group, L.P., licensee of WYOU-TV(CBS), Wilkes- Barre/Scranton, Pennsylvania ("WYOU") has filed with the Commission a petition for mandatory carriage of its signal on the cable systems operated by River Valley Cable TV ("Valley Cable") in the communities of Flemington, Lamar Township, Loganton, Mill Hall, Rote, Walker Township, Bald Eagle Township, Lamar, Lock Haven, Mackeyville, Porter Township, and Salona, Pennsylvania (collectively, the "Communities"). Valley Cable did not file a response. BACKGROUND 2. Pursuant to Section 614 of the Communications 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. A commercial television station serving a community of license that is located within the same ADI as the principal headend of a cable system has a right of carriage on that cable system. 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 in order to comply 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. SUMMARY OF PLEADINGS 4. WYOU, an affiliate of the CBS broadcast network, notes that the cable communities at issue are located in Clinton County, Pennsylvania, which is part of WYOU's ADI. WYOU states that it provides sufficient signal strength to Valley Cable's headend through its translator station, W55AG, located in Williamsport, Pennsylvania. WYOU agrees to compensate Valley Cable for any copyright liability which the cable operator may incur because of its carriage of WYOU. WYOU next states that, on September 27, 1996, it notified Valley Cable of its mandatory carriage rights on Valley Cable's systems serving the Communities. WYOU further states that, on November 13, 1996, Valley Cable responded by refusing carriage of WYOU on its cable systems serving the communities at issue. Valley Cable claimed that it was not required to carry WYOU because it already carried another CBS affiliate, WTAJ-TV, which is located closer to the Communities than is WYOU. WYOU argues that it is entitled to mandatory carriage on Valley Cable's systems serving the Communities because, with regard to those communities, WYOU is deemed to be a local television station. WYOU further argues that, although WTAJ-TV is located geographically closer to the cable communities in question, WTAJ-TV is not a local television station and is not entitled to mandatory carriage. WYOU next argues that Section 76.56(b)(5) of the Commission's rules permits a cable operator to decline carriage of a local network station only if the cable operator is carrying a closer local duplicating station. DISCUSSION 5. We will grant WYOU's carriage complaint against Valley Cable. Section 614(a) of the Communications Act states that each cable operator shall carry the signals of local commercial television stations. A local commercial television station is defined as any full power broadcast television station that is within the same television market as the cable system. It is undisputed that WYOU and Valley Cable are located in the same ADI. A cable operator is required to carry the signals of a local commercial station unless that station fails to deliver a good quality signal to the cable system's principal headend; the station's signal substantially duplicates the signal of another local commercial station which is carried on the system; or the cable operator (with a system of more than 12 usable activated channels) has already allocated up to one-third of the aggregate number of its usable activated channels to other local commercial stations. Commission rules also require a local commercial station that believes that a cable operator has failed to meet its carriage obligations to complain in writing to the operator. The cable operator must respond in writing to the station's complaint within 30 days of receipt. The operator must either commence carriage of the signal, or explain its reasons for failing to do so. If the Commission determines that a cable operator has failed to meet its must-carry obligations, it may order an operator to commence carriage of a station. 6. In the instant case, Valley Cable explained its refusal to carry WYOU by stating that it already carries the signal of another CBS affiliate, WTAJ-TV. Section 76.56(b)(5) of the Commission's rules states that a cable operator is not required to carry the signals of more than one local commercial television station that is affiliated with a particular broadcast network. As noted above, a television station, in order to be considered "local," must be in the same television market as Valley Cable. WYOU is assigned to the Wilkes-Barre/Scranton ADI, the same television market as the cable system. WTAJ-TV is assigned to a different television market, i.e, the Johnstown-Altoona ADI. WTAJ-TV, therefore, is not deemed to be a local station with respect to carriage rights on Valley Cable's cable system. In light of the foregoing, we find that Valley Cable's explanation that it is required to carry the signal of the local station whose community of license reference point is closest to the cable operator's principal headend is inapplicable because WTAJ-TV is not a local station within Valley Cable's market. We will order Valley Cable to carry WYOU. ORDERING CLAUSES 7. Accordingly, IT IS ORDERED that, pursuant to 614 of the Communications Act of 1934, as amended, 47 C.F.R. 534, and 76.56(b)(5) of the Commission's rules, 47 C.F.R. 76.56(b)(5), the Petition for Special Relief (CSR-4920-M) filed by Nexstar Broadcasting Group, L.P., IS GRANTED. 8. IT IS FURTHER ORDERED that River Valley Cable TV SHALL COMMENCE CARRIAGE of the signal WYOU-TV within sixty (60) days from the release date of this Order on its cable system serving the communities of Flemington, Lamar Township, Loganton, Mill Hall, Rote, Walker Township, Bald Eagle Township, Lamar, Lock Haven, Mackeyville, Porter Township, and Salona, Pennsylvania. 9. This action is taken pursuant to authority delegated by 0.321, 47 C.F.R. 0.321 of the Commission's rules. FEDERAL COMMUNICATIONS COMMISSION Gary M. Laden Chief, Consumer Protection and Competition Division Cable Services Bureau