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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 the Matter of Broadcast Television National)MM Docket No. 96- 222 Ownership Rules) ) Review of the Commission's Regulations)MM Docket No. 91-221 Governing Television Broadcasting) ) Television Satellite Stations)MM Docket No. 87-8 Review of Policy and Rules ) ) ) ) ) ) ) ) ) ) MM Docket No. 96-222 MM Docket No. 91-221 MM Docket No. 87-8 MEMORANDUM OPINION AND ORDER ON RECONSIDERATION Adopted: November 13, 2000 Released: January 19, 2001 By the Commission: I. INTRODUCTION AND BACKGROUND 1. In this Order, we deny a petition seeking reconsideration in part of the Report and Order released in this proceeding on August 6, 1999. In the Report and Order, we modified the national television ownership rule to clarify how to calculate a broadcast television station group owner's aggregate national audience reach for purposes of determining compliance with the 35% limit on such reach. The national ownership cap itself was at issue in the 1998 Biennial Review of Broadcast Ownership Rules. In our recently released Report in that proceeding we decided to retain the current 35% limit on a broadcast television station group owner's aggregate national audience reach. 2. In the Report and Order, we concluded that the public interest would be served by counting a market only once when calculating an entity's national ownership reach, even if that entity has an attributable interest in more than one television station in that market. Specifically, we narrowed the general "satellite exemption" to our ownership rules to exempt from the national ownership rule only satellite television stations in the same market as their parents; decided not to incorporate same-market local marketing agreements (LMAs) into the calculation of the brokering station's national audience reach; and replaced the Commission's use of Arbitron's Areas of Dominant Influence (ADIs) to define geographic television markets with the use of Nielsen's Designated Market Areas (DMAs). Consequently, owners of television stations that have an attributable interest in another TV station in the same market, or that operate a satellite station in the same market, do not have to double count those markets in calculating their national aggregate television audience reach. However, a station owner with an attributable interest in a station in a separate market (including satellite stations and LMAs) would have to count that additional audience as part of its national aggregate audience. III. Discussion 4. The Office of Communication, Inc. of United Church of Christ et al. (UCC et al.) seek reconsideration of the Commission's decision to count a market only once when calculating an entity's national ownership reach. UCC et al. argue that the Commission should instead attribute between 50% and 100% of the DMA households to an entity's second station in a market for purposes of calculating the national audience reach. Although they argue this specifically in the context of TV duopolies, they also contend that intramarket satellites and LMAs should be attributed similarly. 5. We reaffirm our decision to count a market only once when calculating an entity's national ownership reach. We discussed this decision in detail in the context of satellites and LMAs, and also noted that the concept is equally applicable to any situation in which an entity has an attributable interest in more than one TV station in a television market. We stated that when two stations in a market are commonly owned by virtue of the local television ownership rule (i.e., a duopoly), that market's audience reach will be counted only once when calculating the group owner's national aggregate audience reach. We explained that, regardless of a station's actual viewership, a licensee is attributed with all of the viewership in the entire DMA. Therefore, increasing actual viewership by adding a second station does not affect the audience reach calculation, as that calculation already includes all the viewers in that DMA. 6. UCC et al. have not raised any arguments that persuade us to revisit this decision. Indeed, many of UCC et al.'s criticisms appear to be directed not at the national cap itself, but at limiting consolidation in local markets. The issue of how much consolidation should be permitted in local markets is addressed in our local ownership proceeding. VII. Conclusion 8. For the above reasons, we decline to grant UCC et al.'s request to attribute between 50 and 100% of the DMA households to an entity's second station in a market, whether it is a duopoly, an LMA or an intramarket TV satellite station. In this Memorandum Opinion and Order on Reconsideration we reaffirm our decision to count a market only once when calculating an entity's national ownership reach, even if that entity has an attributable interest in more than one television station in that market. IX. Procedural matters and ordering clauses 10. Authority for issuance of this Memorandum Opinion and Order on Reconsideration is contained in Sections 4(i), 303(r), and 405 of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 303(r), and 405. 11. Accordingly, IT IS ORDERED that the Petition for Reconsideration in this proceeding IS DENIED pursuant to Sections 4(i), 303(r),and 405 of the Communications Act of 1934, as amended, and Section 1.429(i) of the Commission's rules, 47 C.F.R.  1.429(i). 12. IT IS FURTHER ORDERED that, upon release of this Memorandum Opinion and Order on Reconsideration, this proceeding is hereby terminated. FEDERAL COMMUNICATIONS COMMISSION Magalie Roman Salas Secretary