________ Federal Communications Commission DA 96-1909 Before the Federal Communications Commission Washington, D.C. 20554 In the matter of: ) ) Young Broadcasting, Inc. ) CSR-4781-X ) Petition for Special Relief ) MEMORANDUM OPINION AND ORDER Adopted: November 14, 1996 Released: November 15, 1996 By the Chief, Cable Services Bureau: INTRODUCTION 1. On May 10, 1996, Young Broadcasting Inc. (Young) filed a Petition for Special Relief regarding Section 76.501 of the Commission's Rules, which prohibits a cable operator from owning a television broadcast station whose Grade B contour covers any portion of the community served by the operator's cable system. On July 19, 1996, the petition was placed on public notice. No opposition was filed. 2. A member of the Young Board of Directors, Michael S. Willner, is also a principal of Insight Communications Company, L. P. (Insight). Insight is the operator of cable television systems serving subscribers within the Grade B contour of television station WRIC- TV, which is licensed to Young Broadcasting of Richmond, Inc. (Richmond), a wholly-owned subsidiary of Young. Young filed this petition to permit Mr. Willner to remain on the board, contending that the area in which the prohibited interests exist is de minimis. 3. As explained below, the Bureau finds that Young has demonstrated that grant of its petition would serve the public interest. Therefore, the petition for special relief will be granted. BACKGROUND 4. WRIC-TV, Petersburg, Virginia serves the Richmond-Petersburg, Virginia television market. Insight operates cable television systems within the Grade B contour of the station, serving subscribers in Waverly, Wakefield, Rushmere, and Ivor, Virginia. Petitioner states that a detailed analysis of the relevant facts supports the argument that the area of "overlap" where WRIC's Grade B contour actually reaches subscribers served or homes passed by Insight's cable systems is, at best, de minimis. According to Young, the 14636 Federal Communications Commission DA 96-1909 area of "overlap" consists of four small, rural Southeastern Virginia communities, Waverly, Wakefield, Rushmere, and Ivor. These communities have a total population of 4,681 people, of which 1100 households subscribe to Insight's cable systems. The area covered by the Grade B contour of WRIC-TV consists of 1,285,329 people and 521,080 households. 1 Young states that the total population of the four communities represents 0.36% of the total population residing within the Grade B contour, and that the cable systems serve 0.21% of the households within the Grade B contour. 5. In addition, Young argues that the area of Southeastern Virginia occupied by the four small communities at issue receives a plethora of diverse media services. According to Young, the area is served by 11 television broadcast stations, 29 radio stations from the Richmond market, 22 radio stations from the Norfolk market, and 5 additional radio stations that are even more local to the .area, located in Franklin, Smithfield, and Emporia. 6. Young argues that the Commission has afforded relief in administering other aspects of the multiple ownership rules where strict application of a rule would be inappropriate or unnecessary.2 In addition, Young argues that prior to 1984, and before Section 76.501 was codified into the Communications Act, the Commission granted relief of the television broadcast/cable television cross-ownership restriction in several situations where, as here, the degree of cross-ownership was extremely limited in terms of both the number and location of cable subscribers.3 DISCUSSION 7. Section 76.501 of the Commission's Rules prohibits the common ownership and/or control of a television station and a co-located cable television system. This regulatory restriction was codified into a statutory requirement by the Cable Communications Policy Act of 19844, and recently repealed by the Telecommunications Act of 1996.5 Prior to codification '1990 Census. 2See, e. g., Multiple Ownership of Standard, FM and Television Broadcast Stations, 45 FCC 1476 n.l, recon. granted in part, 3 RR 2d 1554 (1964); In re Multimedia, Inc. (FCC 95-477, Memorandum Opinion and Order, released November 30, 1995 at f 8). *See, e. g., Peninsula Broadcasting Corp., 28 RR 2d 1583 (1973); Southern Communications Corp., 29 RR 2d 101 (1973); Wakeeney Cable TV Co., 34 KR2d 543 (1975); PNG Communications Co., 51 RR2d471 (1982); Falcon Communications, 39 RR 2d 928 (1977). *See P. L. 98-549, 98 Stat. 2780, October 30, 1984, adding 47 U. S. C. § 613(a)(l). 5See Section 202(i) of P. L. 104-104; 110 Stat. 56, approved February 8,1996, repealing 47 U. S. C. § 613(a)(l). 14637 Federal Communications Commission DA 96-1909 of Section 76.501 by Congress in 1984, the Commission, on a number of occasions, granted relief regarding the rule.6 Since the repeal, the Commission has the authority to grant special relief regarding Section 76.501. 8. The Bureau believes that Young has sufficiently demonstrated that the public interest would be served by granting the petition to allow Michael S. Willner to remain on the Board of Directors of Young Broadcasting Inc. The Bureau agrees that the subscribers served by the Insight systems within the Grade B contour of television station WRIC-TV represent only a de minimis portion of the population served by the station, and that the communities at issue are served by many and diverse media sources. Young Broadcasting Company will be required to notify the Commission if Insight substantially increases its cable television presence within the Grade B contour of WRIC-TV. This action is further predicated on the understanding that there will be continued carriage of the diverse broadcast service .carried on the involved cable systems that Young Broadcasting has urged as a basis for the requested waiver. ORDERING CLAUSE 9. Accordingly, IT IS ORDERED that the request for special relief referenced herein shall be GRANTED. 10. This action is taken pursuant to authority delegated by Section 0.321 of the Commission's Rules, 47 C. F. R. § 0.321 (1993). FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau ''See, e. g., Village ofSolvay, 39 RR 2d 1197 (Cable Television Bureau, 1977); CBC Telecommunications Corp., 46 RR 2d 1482 (Cable Television Bureau, 1980); PNG Communications Co., 51 RR 2d 471 (Cable Television Bureau, 1982). 14638