Burlington Part II: New rules more whacked than we thought
We dissected a small deal in Burlington VT last week (11/9/04 RBR Daily Epaper #219). The addition of two new Arbitron markets appeared to enable the acquisition of a small AM station which would give local radio operator Northeast Broadcasting (NEBCO) a ten-station group. Note that it was legal under the contour rules, and, we have learned, quite far flung at that.
Here are some points to ponder before we delve into the surreal world of the new Arbitron-based market definition. First, the original nine NEBCO stations were never a nine station cluster under the contour overlap rules. Even then, they would not be a cluster under the new rules had Burlington not been artificially expanded not too long ago - - some would have been on the fringe of Burlington, some not. Even after the new rules kicked in, they'd presumably still be legal under grandfathering provisions.
Under the market definition, NEBCO wouldn't be able to buy WVAA-AM Burlington VT, but the creation of two new markets - - Montpelier-Barre-Waterbury and Lebanon-Rutland-White River Junction - - provided much more appropriate homes for four of the NEBCO stations, and should have made approval of the WVAA deal a no-brainer.
Guess what? The deal was flagged by the FCC!
RBR observation:
BIA data is routinely showing up with station transaction filings at the FCC. Both of its 2004 radio directories, the BIAfn Radio Yearbook 2004 and the BIAfn Investing in Radio Market Report list 33 stations under Burlington-Plattsburgh. But according to our admittedly aging Dataworld overlap database, only one station licensed to Burlington VT overlaps more than 20 other stations.
Think about the old Firesign Theater punch line from the 70s - - "You can't get there from here." That's almost true in this "market." Burlington and Plattsburgh are 20 miles apart - - if you're a crow. Otherwise, you need a ferry to get from one to the other, or you have to execute a lengthy drive-around to get to the closest bridges in either direction. They don't have a thing to do with one another.
Burlington is as far west as you can get in Vermont. NEBCO's WDOT-FM, which serves St. Johnsbury, is all the way on the eastern side of the state, close to the New Hampshire border. There is a mountain range between WDOT and Burlington! Yet it is counted in NEBCO's Burlington station count.
Think these new rules are going to be fun?
More tomorrow.
Are you reading this from a forwarded email?
