WPCZ 2?BJZECourier3|a  #Xj\  P6G;9XP#HP LaserJet 4M 2A333(Additional)HL4MPCAD.PRSx  @\&X@ X4#Xj\  P6G;9XP#2,qKXCourierTimes New Roman"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<"dxtldpxxd<?xxx,ix6X@`7X@7jC:,9Xj\  P6G;XP?xxx,ix6X@`7X@HPerJet 4M 2A333(Additional)HL4MPCAD.PRSx  @\&X2O^<nK Z3|a  Times New RomanTimes New Roman BoldTimes New Roman Italic"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+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNtoc 8\D4@6 toc 8lE! =(!^D4*!')\D.E2?@!(#` hp x (#2E32=<42o>52@62Btoc 9\D5@6 toc 9lE! =(!^D5*!')\D.E3AB!(#B` hp x (#index 1D6@6 index 1lE! =(!^D6*!')\D.E4CD` !(# ` hp x (#index 2D7@6 index 2lE! =(!^D7*!')\D.E5EF` !(#B` hp x (#toa heading@6 toa heading! =(!^D8*!')\D.E6GH!(# ` hp x (#2QH77E8F9F:GcaptionD9@6 captionlE! =(!^D9*!')\D.E7EI;J#x6X@KX@##b6X@C@#_Equation Ca@6 _Equation Caption!^D:*!')\D.E8;K;L#x6X@KX@##b6X@C@#Default Paragraph FoDefault Paragraph Font911#Xv6X@CX@##b6X@C@#_Equation Caption_Equation Caption:11#Xv6X@CX@##b6X@C@#2QKHKJKMKdO"i~'^5>I\\>>>\g0>03\\\\\\\\\\33gggQyyrg>Frgygrr>3>T\>Q\Q\Q>\\33\3\\\\>F3\\\\QX%Xc>0cT>>>0>>>>>>>>\3QQQQQwyQrQrQrQrQ>3>3>3>3\\\\\\\\\\Q\Z\\\g\QQQyQyQycyQtrQrQrQrQ\\\c\c\>3>\>>>\gcc\r3rIr>r>r3\l\\\\y>y>y>gFgFgFgcrMr3rT\\\\\\crQrQrQ\r>\gFr>\t0\\=!=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n\\pBnnBmgg>Q\7"yyyy\njc\gnn\"i~'^5>g\\>>>\g0>03\\\\\\\\\\>>ggg\yyrF\yrgyy>3>j\>\gQgQ>\g3>g3g\ggQF>g\\\QI(I_>0_j>>>0>>>>>>\>g3\\\\\QyQyQyQyQD3D3D3D3g\\\\gggg\\g\\\\pg\\\QQ_QyQyQyQyQ\\\_\gjF3FgF>Fgg__gy3ySy>yIy3ggg\\QQQgFgFgFg_y^y>yjgggggg_yQyQyQgy>ggFy>\0\\=2=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBa\>\\\\\\7>\7>\7>>\\\??n\\pBnnBsgg>\\7"yyyy\nlc\gnn\"i~'^ %,77\V%%%7>%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%%%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lCTn(nBB(A\\>>n%07\n!"IIIITTenn7TnB@;7>lBBn7"i~'^"(22TN"""28"2222222222888,\HBBH>8HH"&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$<<$.2",2222`2 LL2 LL2L"",,2d""M\\>>>\}0>03\\\\\\\\\\>>}}}\rryrr>Qygyrr\grrggF3FM\>\\Q\Q3\\33Q3\\\\FF3\QyQQFI3Ic>0cM>>>0>>>>>>\>\3r\r\r\r\r\yyQrQrQrQrQ>3>3>3>3y\\\\\\\\\gQr\\\\gQ\r\r\r\r\yQyQycyQnrQrQrQrQ\\\c\c\>3>\>>>\\ccyQg3gBg>g;g3y\jy\y\\\yrFrFrF\F\F\FccgBg3gM\\\\\\ygcgFgFgF\g>y\\Fg>g\n0\\=(=WddddddddddddddddddddddddddddddddddddddddNBnnB_\F\\\\\\3;\7;\7>>gg\??n\\pBnnBb\\>g\7"yyyy\njc\}nn\y.X80,X\  P6G;P7jC:,9Xj\  P6G;XP2a=5,&a\  P6G;&P2e=5,&e4  pG;&P:% ,J:\  P6G;JP H5!,i,5\  P6G;,P\!{,W80,%0W*f9 xr G;X\0_=5,%&_*f9 xr G;&X    &G)!#'+-/537"(%$=?AEIK>F2Z S' X     S'  #&J\  P6Q&P#Federal Communications Commission`}(#cDA 99 yx%dddy 1229 ă  S'` `  hhCqpp  *xxX  S' bP Before the\ Federal Communications Commission  S'"2Washington, D.C. 20554 ă  S4'In re Applications of #&J\  P6Q&P#)pp  S'GoreOvergaard Broadcasting, Inc.hhCq )  S'(Assignor)` ` ) )  Sh'and)File No. BAL 990312GH  S5'` ` ) Word Broadcasting Network, Inc.) S'(Assignee)` ` ) )  Si 'For Assignment of License of) Station WNAI (AM), Newburg, Kentucky)   S '  MEMORANDUM OPINION AND ORDER \  S'X` hp x (#%'0*,.8135@8:' xfavor of granting the waiver request. Second Report and Order Recon, 4 FCC Rcd at 6491. In support of its waiver request, Word submits a showing which addresses each of the five factors.  S' "5.  Public Service Benefits of Joint Operation. Word contends that the proposed combination of" ,&& "  xAWNAI (AM) and WBNA (TV) will create efficiencies that would result in annual savings of  xapproximately $100,000 in the first year alone. Word declares that with these savings, it will be able to  xoperate the stations more productively, provide improved programming and service to the public and  x&compete more effectively in the market. Specifically, Word states that these savings will result from  xccommon operation of WNAI (AM) and WBNATV from one facility with centralized management.  xAdditionally, Word states that these savings will enable Word to upgrade WNAI (AM) equipment to  x^digital. Through this proposed combination, Word also anticipates crosssales and crosspromotion of its  xstations. Moreover, Word asserts that the local community will benefit from the economic efficiencies  xccreated by the proposed combination through improved programming, and increased programming addressing issues of local concern. ` `  S' "R6. Types of Facilities. Word states that WNAI (AM) is a Class B AM station with a maximum  xdaytime power of 1.3 kW and a maximum nighttime power of 450 W. Word states that WBNATV  xoperates on UHF channel 21 with 2000 kW peak visual and an antenna height above average terrain  x^("HAAT") of 750 feet. Word contends that WNAI (AM) would compete with 13 AM and 20 FM stations  xZin the market that have comparable if not superior signals, including WHAS (AM), a 50,000 watt clear  x&channel station. Word indicates that there are 8 licensed television stations in the market, including 2  xnetwork affiliated VHF stations and 6 UHF stations, each with superior facilities and greater geographic  Sj'coverage than WBNATV.    S' "7.  Other Media Outlets. Following consummation of the proposed assignment, Word will have  xDa controlling interest in one TV station, one AM station and an attributable interest in one noncommercial educational FM station. Word does not own other broadcast or media interests in this market.  S8' "u8. Economic Status. While Word does not contend that WNAI (AM) is a "failed station" as  xdefined by the Commission, it claims that the AM station has had consistent losses for the last year and  x&a half. Word has submitted a statement that asserts that WNAI (AM) had losses of $66,786 for eight  xkmonths in 1997, $107,040 for 1998, $22,984 for the first three months of 1999. The total operating loss  Sl'for WNAI (AM) during this time was $196,810.l. yO' x ԍ Letter from Harold W. Gore, Chairman and CEO, GoreOvergaard Broadcasting to Michael Bader, Haley Bader and Potts, dated May 4, 1999.   S' "9. Competition and Diversity in the Market. The final factor in Word's showing is the nature  xof the relevant market in light of the Commission's concerns about diversity and competition. Word  xasserts that Louisville is a large and diverse market which would not be adversely affected by the proposed  xcombination of WNAI (AM) and WBNATV. Word indicates that there are 8 commercial television  xstations in the Louisville market licensed to 5 separate owners, and thirtythree radio stations licensed to  x17 separate owners. Word asserts that there will be 23 separately owned broadcast "voices" in the market  xfollowing approval of the proposed combination. Additionally, Word emphasizes that there is abundant  xnonbroadcast media in the Louisville market, including four daily newspapers, five weekly newspapers,  xkvarious specialty publications, as well as a cable penetration rate of approximately 65 percent in the DMA. ` `  S '` ` Qb Discussion ă "! ,&& :""Ԍ "10. At the outset, we note that the pending television ownership proceeding, in which the  xCommission is considering eliminating or modifying the one-to-a-market rule, does not preclude  S' xconsideration of Word's request for a permanent one-to-a-market waiver. In the Second Further NPRMĄ  xkin the television ownership proceeding, we stated that waiver requests submitted pending resolution of the  S5' x3proceeding will be considered under the current criteria for evaluating such requests.  Second Further  S' xNPRM, 11 FCC Rcd at 21689 n.130. Thus, the Second Further NPRM contemplates approval of  x3permanent, unconditional waivers to allow radio-television combinations that do not propose common  xZownership of stations exceeding a combination of one television station, two AM stations and two FM  Sk' xDstations, as long as the requested waivers are clearly consistent with Commission precedent. Id. Word's proposed combination of one television station and one AM station would not exceed these limits.  S' "11. Public Service Benefits of Joint Ownership. As to the first criterion, the potential public  x^service benefits of joint ownership, the Commission considers the public service benefits that could result  xfrom the proposed radiotelevision combination, such as projected economies of scale, cost savings,  S; ' xpprogram and service benefits.  Second Report and Order, 4 FCC Rcd at 1753. Word states that its  x@acquisition of WNAI(AM) will create efficiencies resulting in significant cost savings and the potential  xfor enhanced programming and other public service benefits. Word's estimated annual savings of  x$100,000 will be realized through the combination of the operating facilities of WNAI (AM) and WBNA xTV. Word asserts that these savings will translate to public service benefits and programming  ximprovements, including enhancement of WNAI(AM)'s equipment and increased programming addressing  x}issues of local concern. Word further indicates that the proposed station combination will facilitate  xadditional savings derived from cross-promotion. We have acknowledged that crosspromotion is a benefit  S'of joint ownership. See, e.g., Sunnyside Communications, Inc., 12 FCC Rcd 24443 (MMB 1997).   S?' "12. Types of Facilities. The second criterion in our analysis concerns the types of facilities that  xthe merged entity will own in each of these markets. In this regard, we must "consider such factors as  x@whether the proposed radiotelevision combination involves a UHF or VHF television station or an AM  S' xor FM radio station as well as the size or class of the stations involved." Second Report and Order, 4  xFCC Rcd at 1753. The Commission's interest in the strength of the technical facilities of the stations at  xissue reflects a continuing concern with the potential impact that the proposed station combination may  S' xhave on diversity and competition in the affected market. See, e.g., Great American Television and Radio  S' x^Co., Inc., 4 FCC Rcd 6347, 6349 (1989). Our independent analysis confirms that WNAI (AM) is a Class  xB AM station licensed to operate on 680 kHz with a maximum daytime power of 1.0 kW and nighttime  xpower of .450kW. We have also confirmed that there is one Class A clear channel AM station, WHAS  x(AM) with a maximum day and nighttime power of 50,000, and 6 Class B AM stations with equal or greater facilities than WNAI (AM).  S' "~13. Word contends that WBNA (TV) is authorized to operate on channel 21 at 2000 kW  Sy' xtmaximum visual from an antenna at 750 feet HAAT. However, our independent analysis demonstrates  xthat WBNATV is authorized to operate on channel 21 at 2000 kW maximum visual with an antenna of  xM732 feet HAAT. Further, our analysis confirms that there are 6 other UHFTV stations in this market.  xIMoreover, our analysis confirms that 3 of these UHF TV stations have equal or stronger technical facilities than WBNATV. In addition, the market includes 2 VHF stations that are network affiliates.  SG#' "14. Thus, there are competing stations with comparable or superior facilities. Moreover, as  x}discussed below, the Louisville market is served by a substantial number of competing stations that represent a significant number of independent voices. "$,&& `%"Ԍ  S' " 15. Other Media Outlets. Under the third criterion, Word, will not own or control media outlets  xcin the Louisville market other than WNAI (AM) and WBNATV. Through the interests of its Vice xPresident and Treasurer, Gregory A. Holt, Word will have an attributable interest in WJIE (FM), a noncommercial educational station in the Louisville market.   S' "16. Economic Status. With respect to financial conditions, under the fourth criterion, Word  xclaims that WNAI (AM) has suffered operating losses since 1997. However, Word has not provided the  xCommission with sufficient documentation from which we can conclude that WNAI (AM) is entitled to  S7' x3consideration as a station experiencing financial difficulties. See, e.g., Engles Enterprises, FCC 9960  S' x(released March 26, 1999).\. yOm ' x; ԍ The Commission has advised applicants relying on this factor to submit "appropriate documentation, including  {O5 ' x a history of the station's past financial losses and predictions of projected losses for the next several years." Second  {O 'Report and Order at 4 FCC Rcd at 1760 n.103. However, we previously indicated that not all five factors need be present  S' xMto justify grant of a ontomarket waiver. Second Report and Order Recon., 4 FCC Rcd at 6491. We  xhave granted a number of one-to-a-market waivers where there was no finding that any of the stations  Sm ' xkwere in financial distress. See, e.g., Atlantic Morris Broadcasting, Inc., 10 FCC Rcd 1175 (1995); Henry  S; ' xBroadcasting Co., 11 FCC Rcd 1175 (1995); Louis C. DeArias, 11 FCC Rcd 3662 (1996); Alta Gulf FM,  S 'Inc., 10 FCC Rcd 7750, 7751 (1995); Secret Communications Ltd., 10 FCC Rcd 6874 (1995).   S ' " 17. Regarding Word's media holdings under the final criterion, we find that the proposed  xcombination will not create any undue concentration of ownership or control of the broadcast media in  S>' xthe Louisville market, the 48th largest DMA.!H>. yO' x ԍ In order to determine the number of radio and television broadcast stations in the context of a one-to-a-market  x waiver, the Commission considers "the relevant TV metro market for radio stations and the relevant ADI [Arbitron  {OZ' x Area of Dominant Influence] TV market for TV stations."  Second Report and Order, 4 FCC Rcd at 1760 n.101.  x; However, because Arbitron no longer compiles ADI data, we will accept instead Word's showing using the Nielsen  {O' x DMA in determining the number of broadcast "voices" at issue in its onetoamarket waiver request. See  {O' x Media/Communications Partners L.P., 10 FCC Rcd 8116 n.3 (1995); see also Review of the Commissions Regulations  {O' x  Governing Television Broadcast Ownership, MM Docket Nos. 91-221 and 87-8, 10 FCC Rcd 3524, 3539 n.59 (1995).! We have verified that there are 6 UHFTV and 2 VHFTV  xstations licensed in the Louisville DMA. In addition, our independent analysis of Word's showing  xindicates that there are at least 12 AM and 18 FM stations licensed to communities in the relevant  S' xtelevision metro market." . yOA' xQ ԍ Word's showing lists WCND(AM), Shelbyville (Shelby County), WTHQ(FM), Shelbyville (Shelby County),  x which are not in the Louisville Metro Market. In addition, Word Lists WSFR(FM), a station that, according to  xH Commission records, is not operating. Thus, WSFR(FM) is not counted for purposes of our analysis of competition  {O 'and diversity.  See Second Report and Order, 4 FCC Rcd 1751 n.86. These 30 radio stations and 8 television stations will be licensed to at least 21  xDseparate owners following consummation of Word's acquisition of WNAI (AM). A wide variety of other  S?' xMmedia are available including cable systems, which reach 65 percent of total TV households,X ?. yO#'ԍ  Broadcast & Cable Yearbook 1998, p. C4.X and, our"?v ,&& "  S' xQindependent analysis confirms at least 4 daily newspapersR ". yOh' x ԍ These include the following daily publications: The CourierJournal, published by the Gannett Company,  yO0' x circulation 231,620, The Evening News, published by Community Newspaper Holdings, Inc., circulation 10,456,  yO' x^ The Tribute, published by the American Publishing Company, circulation 9,541, The Madison Courier, published  {O'by Madison Courier, Inc., circulation 9,375. See Bacon's Newspaper Directory, 1999.R and at least  S' x5 weekly newspapers and specialty newspapers.P ". yO' x ԍ These include: The Louisville Defender, Shively Newsweek, The Voice Newspaper, Herald Leader, the Jewish  yO' x Community Newspaper and The Record, the Roman Catholic Archdiocese of Louisville's weekly publication. The  yO' x; Louisville Daily Sports News, Senior Life & Times, the Thrifty Nickel Wants Ad and various specialty publications.   {Ow ' See Gore's FCC Form 314 , Assignee's Portion, Exhibit One.P We conclude that this level of diversity is consistent  S' xQwith levels approved in previous permanent waiver requests. See, e.g. Triad Skywaves, Inc., 12 FCC Rcd  Sh' x6102 (MMB 1997) (22 "voices" in 46th ranked market); Illinois Valley Broadcasting, Inc., 11 FCC Rcd 1302 (1996) (22 "voices" in 109th ranked market). ` `  S' "_ 18. With respect to economic concentration and competition in the context of one-to-a-market  xwaiver requests, our independent analysis indicates that WBNA (TV) garners .72% of the TV advertising  Sj' x<revenues, as reported in the BIA Publications, Inc.'s ("BIA") Television Master Access Database.q j. yO'ԍ BIA provides TV advertising revenue data based on 1998 revenue figures.q  xAlthough the radio advertising revenue for WNAI would be reported in the Louisville BIA/Arbitron radio  x/metro, BIA estimates that the station receives no advertising revenues. Thus, the combined radio S'television advertising revenue share is .048%.   Sk ' "q19. Moreover, we find that the parties are fully qualified. We conclude that grant of the  xpermanent waiver to permit common ownership of WBNATV and WNAI (AM) in the Louisville market  xRwill result in economic efficiencies and public interest benefits without undue adverse effect on  xcompetition or diversity in the Louisville market. Based on the totality of circumstances, and our  xtreatment of waiver requests in other similar size markets, we conclude that grant of the Word's request for a permanent waiver of the one-to-a-market rule would be in the public interest.  "`20. Accordingly, IT IS ORDERED, that the request for waiver of the Commission's  xone-to-a-market rule, 47 C.F.R. Section 73.3555(c), to permit common ownership of WNAI (AM) and WBNATV, Louisville, Kentucky, IS HEREBY GRANTED.   "Բ21. IT IS FURTHER ORDERED, that the above-captioned application to assign the license of  xWNAI (AM), Newburg, Kentucky, from GoreOvergaard Broadcasting, Inc. to Word Broadcasting Network, Inc., IS HEREBY GRANTED. ` `  hhCFEDERAL COMMUNICATIONS COMMISSION ` `  hhCRoy J. Stewart"o, ,&& "Ԍ` `  hhCChief, Mass Media Bureau