NEWS Report No. DC 95-141 ACTION IN DOCKET CASE December 8, 1995 COMMISSION SEEKS COMMENT ON REVISED ADI DEFINITION FOR MUST-CARRY PURPOSES; PROPOSES CONTINUED USE OF ARBITRON DEFINITION IN 1996 (CS DOCKET 95-178) The Commission has unanimously adopted a Notice of Proposed Rule Making seeking comment on a revised market definition process for the purposes of the cable television broadcast signal carriage rules. Pursuant to the Commission's "must-carry/retransmission" rules (Section 614 of the Communications Act), a commercial television broadcast station is entitled to assert mandatory carriage rights on cable systems located within the station's market. A commercial broadcast television station's market is based on its area of dominant influence ("ADI") as defined by the Arbitron audience research organization ("Arbitron"). An ADI is a geographic market designation that defines each television market exclusive of others based on measured viewing patterns. The Commission anticipated that Arbitron ADI market definitions would continue to be revised annually; however, Arbitron has ceased its designation and publication of ADI market areas. Therefore, because the next must- carry/retransmission consent election must be made by October 1, 1996, a decision as to the proper market list and definitions is needed prior to that date. In the NPRM, the Commission proposes to retain the existing market definitions for the next must-carry/retransmission consent election cycle. The Commission has concluded that several options appear to be available: (1) substitute the Nielsen "Designated Market Areas" ("DMAs") for the Arbitron ADI; (2) continue to use the Arbitron ADI definitions; or, (3) retain the existing market definitions for the 1996 election period and switch to a Nielsen based standard thereafter. The Commission has tentatively concluded that the second of these options is preferable. It has the advantage of providing stability in the television broadcast signal carriage process. Additionally, changing from one system to the other would raise questions as to the numerous cases which have been processed under Section 614(h) revision market areas with respect to particular stations and particular communities. The Commission seeks comment on the above alternatives as well as suggestions for any other alternatives that would better accomplish the market definition objectives of the must- carry\retransmission rules. Action by the Commission, December 8, 1995, by Order (FCC 95-489). Chairman Hundt, Commissioners Quell, Barrett, Ness and Chong. News Media contact: Morgan Broman (202) 416-0852; Cable Services Bureau contacts: Dana Bradford or Marcia Glauberman (202) 416-0800.