Report No. MM 95-85 MASS MEDIA ACTION August 30, 1995 SHELBYVILLE PUBLISHING CO. DENIED WAIVER OF THE DAILY NEWSPAPER CROSS-OWNERSHIP RULE; ASSIGNMENT OF LICENSE FOR WLIJ(AM), SHELBYVILLE, TN, DENIED The Commission has denied Shelbyville Publishing Co., Inc.'s request for a permanent waiver of the daily newspaper cross- ownership rule, thus denying Shelbyville's application to assign the license of WLIJ(AM), Shelbyville, TN, from Hopkins Hall Broadcasting, Inc. to Shelbyville Publishing. The Commission, in taking this action, granted the petition to deny filed by the Cromwell Group, which owns an AM/FM combo licensed to Shelbyville. Shelbyville Publishing is the owner and operator of the Shelbyville Times-Gazette. The Times-Gazette is the only daily newspaper published in Bedford County, TN, which is approximately 50 miles from Nashville. Although Bedford County is in the Nashville television Area of Dominant Influence (ADI), the 33d largest, it is not within the Nashville radio metro market, as defined by Arbitron. In recent appropriations measures, Congress has permitted the FCC to amend policies with respect to waivers of the daily newspaper/radio cross-ownership rule. This authority extends to the top 25 markets where at least 30 individual broadcast voices remain after a transfer and requires a finding that the public interest would be served based on a showing that specified benefits offset a reduction in diversity resulting from the waiver. The Commission retains the discretion to examine other requests for waiver of the rule on a case-by-case basis upon a showing that such a waiver would have "unique public benefits," Shelbyville Publishing based its waiver request on the "unique public benefits" of improved local news coverage and public affairs programming on WLIJ that would be derived from combined ownership with the Times-Gazette, which already has a staff of reporters and editors covering local issues. Shelbyville Publishing argued that it was unable to afford the cost of a news staff for a small, stand-alone AM station. -more- -2- In denying the waiver, the Commission noted that it has only granted two permanent waivers of the daily newspaper/broadcast cross-ownership rule in 20 years, both involving major market television stations where either the newspaper or the television station was suffering financial hardship. The Commission stated that Shelbyville Publishing's waiver was based upon a showing that combined ownership of the newspaper and radio station would have a de minimis impact on diversity and competition in the Nashville ADI. The Commission stated also that the impact on diversity and competition would be significant in Bedford County, which is the relevant market because it is served by both the newspaper and the AM station. In sum, the Commission stated that Shelbyville Publishing has failed to show that a waiver request outside the top 25 markets would provide "unique public benefits" that Congress intended in connection with a change in the Commission's waiver policy. Action by the Commission July 31, 1995, by Memorandum Opinion and Order (FCC 95-331). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong, with Commissioner Quello issuing a separate statement. -FCC- News Media contact: Patricia A. Chew at (202) 418-0500. Mass Media Bureau contact: Bill Dever at (202) 418-2689.