Regulatory Body Affords Control of Alpha Media's Stations to Connoisseur Media
FCC Grants Waiver to Connoisseur Media for Tyler-Longview Stations
The Federal Communications Commission (FCC) has approved a waiver for Connoisseur Media, allowing the company to control eight radio stations in the Tyler-Longview, Texas market. This move exceeds the local ownership cap of seven full-power commercial stations, as set by the FCC's Local Radio Ownership Rules.
The waiver was granted due to the unique circumstances of the transaction. Alpha Media, the previous owner of these stations, had been grandfathered with more than the usual limit of stations in the market. The transfer of control triggered a review, necessitating the waiver to maintain this arrangement.
The FCC found that granting this waiver would preserve the existing market conditions and thus serve the public interest. The commission noted that the market's diversity in ownership and programming further justified the waiver. Additionally, the waiver was unopposed, and the commission found no anticompetitive impact.
The Alpha stations ranked third in local ad revenue, supporting the view that this deal did not distort local competition. The waiver makes Connoisseur one of the top 10 radio groups by station count.
KTLH(FM), a station added to Alpha's licenses in 2017, is included in the transfer. Notably, KTLH simulcasts KOYE, and Connoisseur explained that there is no independent revenue attributed to KTLH.
The commission's decision to grant the transfer of control from Alpha to Connoisseur required a waiver of Note 4. This waiver was supported by the fact that Connoisseur does not own other stations in the Tyler-Longview market, helping avoid anticompetitive concerns.
The five Alpha stations in the Tyler-Longview market are: KOOI(FM) (Adult Contemporary), KYKX(FM) (Country), KKUS(FM) (Classic Country), KOYE(FM) (Regional Mexican), and KTLH(FM) (silent, through a silent STA filed by Alpha). The commission's decision to grant the waiver required a review of the overages in Alpha's ownership in the Tyler-Longview market, which were due to a 2022 BIA market designation change for KOYE and KTLH.
In summary, the FCC’s Media Bureau formally authorized Connoisseur Media to assume control of Alpha Media’s Tyler-Longview stations by granting a waiver of the local ownership caps, relying on the unique market circumstances and preservation of the status quo as justification.
[1] FCC Media Bureau Decision, GRANT OF WAIVER OF SECTION 73.3550(b)(2) OF THE COMMISSION'S RULES TO CONNOISSEUR MEDIA, INC. (DA 23-113), 13 April 2023. [2] FCC Media Bureau Decision, GRANT OF WAIVER OF SECTION 73.3550(b)(2) OF THE COMMISSION'S RULES TO ALPHA BROADCASTING COMPANY, INC. (DA 15-1245), 25 August 2015. [3] BIA Advisory Services, Inc., "Tyler-Longview, TX Radio Market Overview", 2023. [4] FCC Media Bureau Decision, GRANT OF WAIVER OF SECTION 73.3550(b)(2) OF THE COMMISSION'S RULES TO ALPHA BROADCASTING COMPANY, INC. (DA 15-1245), 25 August 2015.
[1] The granting of the waiver by the FCC allows Connoisseur Media to control radio broadcasting in the Tyler-Longview, Texas market, resulting in financial gains for the business through the increased number of stations.[2] The commission's decision is based on the unique circumstances of the transaction, previously supported by a waiver granted to Alpha Media, which also controlled more than the usual limit of stations in the market.[3] The financial implication of this move indicates that the combined stations of Connoisseur Media could potentially dominate local ad revenues in the radio market, weighing on competition and programming diversity.[4] Despite the increased market control, the commission found that the waiver does not have anticompetitive impacts, citing the market's diversity in ownership and programming as justification.
