Monroe Communications Corporation v. Federal Communications Commission, Harriscope of Chicago, Inc., a Joint Venture D/B/A Video 44, Intervenors

900 F.2d 351, 283 U.S. App. D.C. 367, 67 Rad. Reg. 2d (P & F) 843, 17 Media L. Rep. (BNA) 1703, 1990 U.S. App. LEXIS 5165
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 10, 1990
Docket89-1092
StatusPublished
Cited by4 cases

This text of 900 F.2d 351 (Monroe Communications Corporation v. Federal Communications Commission, Harriscope of Chicago, Inc., a Joint Venture D/B/A Video 44, Intervenors) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monroe Communications Corporation v. Federal Communications Commission, Harriscope of Chicago, Inc., a Joint Venture D/B/A Video 44, Intervenors, 900 F.2d 351, 283 U.S. App. D.C. 367, 67 Rad. Reg. 2d (P & F) 843, 17 Media L. Rep. (BNA) 1703, 1990 U.S. App. LEXIS 5165 (D.C. Cir. 1990).

Opinions

Opinion for the Court filed by Circuit Judge SENTELLE.

Concurring opinion filed by Circuit Judge SILBERMAN.

SENTELLE, Circuit Judge:

Monroe Communications Corporation (“Monroe”) petitions this Court for review of a decision of the Federal Communications Commission (“FCC” or the “Commission”) awarding Video 44 (“the station”) a renewal of its license to operate station WSNS-TV in Chicago, Illinois, and to deny Monroe’s mutually exclusive application for a construction permit. Specifically, Monroe contends that the Commission’s award of a renewal expectancy to Video 44 was arbitrary and capricious and that the Commission improperly refused to consider evidence of obscene broadcasts by Video 44.

We find that the Board arbitrarily and capriciously awarded a renewal expectancy to Video 44 in light of record evidence of Video 44’s marked and apparently permanent cutback in non-entertainment programming through the latter part of its prior license period. Further, we conclude that the Commission arbitrarily failed to consider in the license renewal proceeding allegations of obscene broadcasts by Video 44. We therefore grant Monroe’s petition and remand this case to the Commission [353]*353for further proceedings consistent with this opinion.

I. Regulatory Background

When choosing among mutually exclusive applicants for broadcast facilities, the Commission considers a number of factors to predict which applicant will likely best serve the public interest. When all competitors are applicants for an initial license, the Commission focuses on, among other things, each applicant’s diversification, meaning the number of other media outlets already owned by the applicant, and integration, meaning the extent to which the owners of the applicant will be involved in the management of the station. See Policy Statement on Comparative Broadcast Proceedings, 1 F.C.C.2d 393 (1965). When one of the applicants already has a license for the station in issue and is seeking renewal of its license, the Commission may grant that applicant a “renewal expectancy” which may be sufficient to outweigh the advantages a challenger may have with respect to diversification and integration. Cowles Broadcasting, Inc., 86 F.C.C.2d 993, 1015 (1981) (Cowles II), aff'd sub nom., Central Florida Enterprises, Inc. v. FCC, 683 F.2d 503 (D.C.Cir.1982), cert. denied, 460 U.S. 1084, 103 S.Ct. 1774, 76 L.Ed.2d 346 (1983) (Central Florida II).

An incumbent applicant may be entitled to a renewal expectancy if its performance during the preceding license term has been “ ‘substantial,’ ” meaning “ ‘sound, favorable and substantially above a level of mediocre service which might just minimally warrant renewal.’ ” Cowles II, 86 F.C.C.2d at 1006 (quoting Cowles Florida Broadcasting, Inc., 62 F.C.C.2d 953, 955-56 (1977)). In deciding whether to award a renewal expectancy, the Commission focuses on non-entertainment programming broadcast by the station, including news, public affairs, and public service announcements. See, e.g., Radio Station WABZ, Inc., 90 F.C.C.2d 818, 840-42 (1982), aff'd sub nom. Victor Broadcasting, Inc. v. FCC, 722 F.2d 756 (D.C.Cir.1983). A licensee is expected to ascertain and respond to community needs and problems in its non-entertainment programming in order to earn a renewal expectancy. Radio Station WABZ, 90 F.C.C.2d at 840-42; In re Simon Geller, 90 F.C.C.2d 250, 270-71 (1982), rev’d on other grounds sub nom. Committee for Community Access v. FCC, 737 F.2d 74 (D.C.Cir.1984); In re WPIX, Inc., 68 F.C.C.2d 218, 402 (1974).

The Commission has articulated three purposes underlying its renewal expectancy policy. First, incumbents’ performances are proven, whereas challengers have only paper proposals to offer: “Thus, not only might replacing an incumbent be entirely gratuitous, but it might even deprive the community of an acceptable service and replace it with an inferior one.” Cowles II, 86 F.C.C.2d at 1013. Second, “[ljicensees should be encouraged through the likelihood of renewal to make investments to ensure quality service.” Id. Third, “[comparing incumbents and challengers as if they were both new applicants could lead to a haphazard restructuring of the broadcast industry....” Id.

This Court has condoned some degree of renewal expectancy for a broadcaster’s meritorious past record, noting that “ ‘the incumbent’s past performance is some evidence, and perhaps the best evidence, of what its future performance would be.’ ” Central Florida II, 683 F.2d at 506 (quoting Central Florida Enterprises v. FCC, 598 F.2d 37, 55 (D.C.Cir.1978), cert. dismissed, 441 U.S. 957, 99 S.Ct. 2189, 60 L.Ed.2d 1062 (1979). The Commission, too, has indicated that a station’s past performance is relevant primarily insofar as it is probative of the station’s likely future performance. Simon Geller, 90 F.C.C.2d at 271.

This Court has also expressed concern, though, that the Commission has in the past been too reluctant to deny renewals to incumbent television license holders in comparative challenges. Central Florida II, 683 F.2d at 510. In Central Florida II we warned the FCC not to “chant ‘renewal expectancy’ and grant the license” in a case where the justifications underlying the renewal expectancy policy are attenuated. Id. at 510 n. 40.

[354]*354II. FaCtual Background and Proceedings Below

At' the beginning of the previous license term, in December, 1979, licensee Video 44 offered conventional television programming and broadcast a substantial amount of non-entertainment programming. During the 1979-1982 license term, Video 44 gradually converted the station to a subscription television service (“STV”),1 offering STV programming for at least 23 hours each day by the end of the term. The station continued, though, to broadcast conventional, non-entertainment programming from 6:00 a.m. to 7:00 a.m., Monday through Friday, showing a nationally distributed program called “Health Field” and a show about local and statewide issues called “Illinois Press.” By the end of the license term, Video 44 had essentially closed down its local production facilities. Video 44’s other broadcasts included a substantial number of “adult” films which contained nudity, offensive language, and various sexual acts.

The Administrative Law Judge (“AU”) who conducted the initial comparative renewal hearing between Video 44 and Monroe concluded in the Initial Decision that Video 44 was not entitled to a renewal expectancy. Video 44, 102 F.C.C.2d 419 (ALJ 1985). In so deciding, the judge focused on the latter part of the previous license term, in which Video 44 cut back its non-entertainment program markedly, because he concluded that Video 44’s performance after switching over to the STV format was probably more probative of its likely future performance than its programming before the format change. Id. at 458.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
900 F.2d 351, 283 U.S. App. D.C. 367, 67 Rad. Reg. 2d (P & F) 843, 17 Media L. Rep. (BNA) 1703, 1990 U.S. App. LEXIS 5165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monroe-communications-corporation-v-federal-communications-commission-cadc-1990.