WPCW/ 2BJZ Courier3|jix6X@`7X@HP LaserJet 4M room 702d) RM 700HL4MPCAD.PRSx  @\ oXX@2'6<F ZK3|jTimes New RomanTimes New Roman BoldTimes New Roman ItalicHP LaserJet 4M room 702d) RM 700HL4MPCAD.PRSXj\  P6G;\ oXXP"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxd2 KYKD "i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""x4. Under the casebycase standard, the Commission makes a public interest determination  xby weighing five factors: (1) the potential public benefits of joint operation of the facilities, such  xas economies of scale, cost savings, and programming and service benefits; (2) the types of",-(-(ZZ"  x-facilities involved; (3) the number of media outlets owned by the applicant in the relevant market;  xy(4) the financial difficulties of the stations involved; and (5) the nature of the relevant market in  X- xthe light of the level of competition and diversity after the joint operation is implemented. See  X-Second Report and Order, 4 FCC Rcd at 1753.  X-  x5. Benefits of Joint Operation. Sinclair maintains that the cost efficiencies achieved from  xRiver City's joint operation of KDNLTV, WVRV(FM) and KPNT(FM) will continue under  xSinclair's common ownership of the stations. Specifically, Sinclair refers to River City's asserted  xZannual cost savings totalling at least $300,000 from consolidation of administration and personnel  x{($125,000), shared studio space ($75,000) and crosspromotion of the stations ($100,000).  xSinclair also notes that River City's projected expansion of KDNLTV's local news coverage and  ximprovement of WVRV(FM)'s technical facilities as a result of these cost savings have been  xrealized. Moreover, Sinclair states that under its common ownership of KDNLTV, WVRV(FM)  x-and KPNT(FM), it will add to the public interest benefits made possible through the cost savings  xyfrom joint operation of the stations, further reinvesting these cost savings into expanded local x.programming for viewers and listeners in the St. Louis market. In particular, under its common  xownership, Sinclair promises that: (1) KDNLTV will produce and broadcast one additional hour  xper week of local nonentertainment programming geared to the needs and concerns of the St.  xLouis television market; (2) KDNLTV will air "Take One," a weekly 30minute, local children's  xprogram coproduced by several Sinclair television stations, and will produce and contribute  x-segments to this program that are directed to the interests of children in the St. Louis market; and  x(3) the cost savings from joint operation of KDNLTV, WVRV(FM) and KPNT(FM) will be  xreinvested in outreach to minorities in the St. Louis area. As indicated in the FCC Form 396A  xLaccompanying the KDNLTV assignment application, Sinclair will also donate a scholarship to  x\a local college or university in the St. Louis area to be awarded to a minority majoring in the field of communications.  X-  mx6. Other Media Outlets/Types of Facilities. Sinclair asserts that it presently owns no  x media outlets in the St. Louis market. In describing the types of facilities involved, Sinclair  xLstates that KDNLTV is an ABCaffiliated UHF station operating on Channel 30 at an Effective  xRadiated Power (ERP) of 2,190 kW, and an antenna height above average terrain (HAAT) of  x[1,100 feet. For viewership, KDNLTV competes with four commercial VHF stations in its DMA  x[that are affiliated with Fox, CBS, NBC and the Warner Brothers network, respectively, and with  xone noncommercial VHF station affiliated with PBS. According to Sinclair, average Nielsen  xratings data for the 1995 surveys indicates that, though having switched to ABC affiliation in  xAugust 1995, KDNLTV remains tied for fourth with the Warner Brothers affiliate in terms of  xaverage station shares over the total day. KPNT(FM) is a Class C station operating on Channel  x289 (105.7 MHz), with an ERP of 100 kW and an HAAT of 285 feet. WVRV(FM) operates on  x>Channel 266 (101.1 MHz) with an ERP of 44 kW and an HAAT of 518 feet. WVRV(FM) has  x.recently implemented an authorized modification of its facilities to change its antenna location  xfrom Zone 1 to Zone II, change channel class from Class B to Class C2, and operate at a slightly  x^higher height above average terrain of 162 meters. A license application to cover this  xmodification is pending. Sinclair claims that the Commission's findings in 1995, that "[w]hile  xKsuch facilities are not insubstantial, the proposed combination of these facilities does not present"#',-(-(ZZ%"  X-issues of market dominance inconsistent with the public interest,"ge yOy-ԍ River Cities Broadcasting Corp., 10 FCC Rcd at 10622. g also hold true today.  X-  !x7. Financial Difficulties. Sinclair concedes that KDNLTV, WVRV(FM) and KPNT(FM)  xdo not meet the Commission's definition of "failed stations," as none of them are involved in  x/bankruptcy proceedings or have been off the air for a substantial period of time. However,  xSinclair contends that WVRV(FM) and KPNT(FM) have not established a firm economic footing  xLin the St. Louis market. In support, Sinclair refers to the 1995 request for waiver in which River  x.City estimated that, since 1991, the two stations had generated cumulative operating losses of  x\$2.685 million. River City also pointed out that, according to Arbitron's Winter 1995 ratings  xdata, KPNT(FM) had a 4.0 audience share, ranking ninth in the market, and WVRV(FM) had a  x|2.1 audience share, ranking 16th in the market. Sinclair claims that the performance of  xKPNT(FM) and WVRV(FM) has not materially improved since the Winter 1995 survey,  x=Arbitron's Winter 1996 data showing KPNT(FM) having a 4.6 audience share and WVRV(FM) having a 1.6 audience share.  X -  x8. Effect on Diversity and Competition. Presently owning no broadcast stations in the  xSt. Louis market, Sinclair maintains that it proposes "to do no more than acquire an existing `one xtoamarket' combination." In doing so, Sinclair argues that "no additional constriction of  xdiversity or competition in the St. Louis market will be created by the assignments proposed  x{here." Sinclair asserts that the St. Louis media market continues to be highly diverse and  x]competitive, noting that the St. Louis DMA, ranked the 20th television market, has eight  xtelevision stations, one noncommercial and seven commercial stations. Sinclair also states that  xArbitron ranks St. Louis as the 17th largest Metro market, having a total of 52 radio stations, 38  xcommercial and 14 noncommercial stations. These 52 stations, Sinclair claims, are owned by  x<36 separate and distinct broadcast "voices." According to Sinclair's calculations, which take into  xaccount the existing onetoamarket combination of KDNLTV, WVRV(FM) and KPNT(FM),  xcurrently there are a total of 60 radio and television stations in the St. Louis market, owned by  xl43 separate and independent broadcast voices. In addition, Sinclair indicates that cable  xpenetration in the St. Louis DMA is 52.1%, with cable systems offering, on average,  xLapproximately 30 channels of video programming. Sinclair further represents that the St. Louis DMA is served by seven daily newspapers and 118 weekly newspapers.  X -  x9. Discussion. The Commission's goal in evaluating a casebycase request for waiver  xof the onetoamarket rule is "to permit the public to benefit from such efficiencies of operation  xas may be achieved through the use of common facilities and staff, consistent with the  X- x[maintenance of diversity and vigorous competition within the market areas involved." Second  X - xReport and Order Recon., 4 FCC Rcd at 6491. We conclude that, on balance, Sinclair's showing  x.in support of its request for waiver of the onetoamarket rule meets our casebycase criteria,  xthat a waiver in this instance is in the public interest, and that the waiver would not adversely affect competition and diversity in the St. Louis market. "h$X,-(-(ZZF#"Ԍ  x10. As to the first criterion, the potential public service benefits of joint ownership, the  xCommission considers the public service benefits that will result from the proposed radio xtelevision combination, such as projected economies of scale, cost savings, and programming and  X- xservice benefits. Second Report and Order, 4 FCC Rcd at 1753. Sinclair has shown that the cost  xjefficiencies derived from River City's joint operation of KDNLTV, WVRV(FM) and KPNT(FM)  xwill continue under Sinclair's common ownership of the stations. In particular, Sinclair  xanticipates similar annual cost savings amounting to $300,000 from the continued consolidation  xof administration and personnel, shared studio space and crosspromotion of the stations. Further,  xxalthough there appears to be a reduction in the number of independent broadcast voices in the St.  x\Louis market since we last approved the common ownership of KDNLTV, WVRV(FM) and  xiKPNT(FM) in 1995, there remain more than enough independent broadcast voices to assuage any  X - xconcern over the continued joint ownership and operation of the stations. See infra  13.  xFinally, Sinclair represents that KDNLTV will produce and broadcast one additional hour per  xKweek of local nonentertainment programming directed to the needs and concerns of the St. Louis television market.   x11. With respect to the types of facilities involved, the Commission endeavors to predict  x]and avoid any significant adverse effect on diversity or competition from too powerful a  Xb- x{combination. Id. at 6349. Although the facilities at issue here are not insubstantial, their  xcommon control does do not present a risk of dominating the market in a manner inconsistent  xwith the public interest. There are comparable or superior technical facilities competing in the  xmarket and Sinclair has demonstrated that KDNLTV, an ABCaffiliated UHF station competing  xwith four commercial VHF stations and one noncommercial VHF station, places fourth in terms  xof average station shares over the total day, while KPNT(FM) and WVRV(FM) have 4.6 and 1.6 audience shares, and rank ninth and sixteenth in the market, respectively.   0x12. In reviewing financial difficulties, the Commission "will consider information related  X- xto whether a station has long been offered for sale, to no avail." Second Report and Order, 4  xFCC Rcd at 1753. The Commission has advised applicants relying on this factor to submit  x"appropriate documentation, including a history of the station's past financial losses and  XN- x=predictions of projected losses for the next several years." Id. at 1760 n.103. Notwithstanding  xits undocumented reference to River City's cumulative operating losses generated by KPNT(FM)  xand WVRV(FM), Sinclair has not shown that any of the stations involved in the transaction are  xexperiencing financial difficulties. However, we note that not all of the casebycase factors are  X-relevant in every case. See Second Report and Order Recon., 4 FCC Rcd at 6491.   x13. Finally, Sinclair has demonstrated that its proposed joint ownership and operation of  xKDNLTV, KPNT(FM) and WVRV(FM) will not diminish competition or diversity in St. Louis,  xjthe 20th television market. Sinclair presently owns no other broadcast stations in the St. Louis  x=market. St. Louis is served by eight television and 52 radio stations. Accounting for Sinclair's  xproposed acquisition of the existing KDNLTV, KPNT(FM) and WVRV(FM) combination, of  xthese 60 broadcast stations, St. Louis will be served by 36 separatelyowned and operated  xbroadcast "voices," seven daily newspapers and 118 weekly newspapers. Cable penetration in the  xSt. Louis DMA is 52.1%. In addition, because Sinclair's proposed acquisitions will continue an"#',-(-(ZZ%"  xexisting combination, there will be no further decrease in this level of diversity and competition.  x]Finally, the combined revenue share of the television and radio stations in the proposed  xcombination accounts for 11% of the total television and radio revenues in the St. Louis market.  xkThis level of concentration does not pose a risk to competition that would warrant denial of  xSinclair's requested waiver. For the foregoing reasons, we are persuaded that the public interest  xbenefit of Sinclair's common ownership and operation of KDNLTV, KPNT(FM) and WVRV(FM) justifies grant of a waiver of the onetoamarket rule. h,CONCLUSION   lx14. Having determined that the applicants are qualified in all respects, we find that grant of the assignment applications will serve the public interest, convenience and necessity.   ox15. Accordingly, IT IS ORDERED that the abovecaptioned application for the  xzassignment of license of television station KDNLTV from River City License Partnership to KDNL Licensee, Inc. IS GRANTED.   x16. IT IS FURTHER ORDERED that the abovecaptioned applications for the assignment  xof licenses of radio stations WVRV(FM) and KPNT(FM) from River City License Partnership to Sinclair Radio of St. Louis Licensee, Inc. ARE GRANTED.   x17. IT IS FURTHER ORDERED that the request for a waiver of the Commission's one x\toamarket rule, 47 C.F.R.  73.3555(c), to allow Sinclair's common ownership and operation of KDNLTV, WVRV(FM) and KPNT(FM) IS GRANTED. TFEDERAL COMMUNICATIONS COMMISSIONX(#P x` `  hh@ Roy J. Stewart x` `  hh@ Chief, Mass Media Bureau