Washington Post 2012 Annual Report Download - page 40

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networks, violated this requirement by broadcasting material in their newscasts without disclosing its source. The stations
responded to these complaints by asserting that they did not receive any consideration in exchange for the relevant
broadcasts and that the broadcasts did not violate FCC rules. Although the FCC took enforcement action in 2007
against a cable operator in connection with the same set of complaints, it has not taken any action with respect to the
affected PNS stations.
The FCC is conducting proceedings concerning various matters in addition to those described in this section. The outcome
of these FCC proceedings and other matters described in this section could adversely affect the profitability of PNS’s
television broadcasting operations.
Other Activities
WaPo Labs
WaPo Labs is an innovative digital team focusing on experimenting with emerging technologies. In 2012, WaPo Labs
launched several projects in partnership with the Company’s media properties: (1) Personal Post, a feature on
washingtonpost.com that delivers personalized article recommendations based on a user’s interests and past reading
behavior; (2) The Fold, a video news program available on washingtonpost.com, Google TV and Android tablets; and
(3) The Root 100, which comprises 100 Android apps aggregating content about the Root 100 honorees, chosen for
their impact and influence within the African-American community. In addition to working closely with the Company’s
news websites, WaPo Labs oversees Washington Post Social Reader (Social Reader) and Trove. Social Reader is a
Facebook-connected website that delivers news articles based on a user’s interests and what their friends are reading.
Social Reader aggregates content from the Post, Slate, Foreign Policy, Express, the Root and more than 90 other content
partners to create a social stream of articles. Launched in September 2011, more than 32 million people have
downloaded Social Reader. Trove is a personalized news site that aggregates news from more than 15,000 sources
across the Web and allows users to customize channels based on their interests. Trove technology powers Social Reader.
Social Code
Social Code LLC (Social Code) is a marketing solutions company helping Fortune 500 brands maximize their marketing
efforts on social media platforms.
Celtic Healthcare, Inc.
Celtic Healthcare, Inc. (Celtic) is a Medicare-certified provider of home health and hospice services headquartered in
Mars, PA. Through its subsidiaries, Celtic is licensed to provide home health and hospice services throughout
Pennsylvania and Maryland. These services include skilled nursing, physical therapy, occupational therapy, speech
therapy, social work, nutrition, chaplain and aid services. In addition, Celtic provides virtual care services to patients
throughout its service territories. Celtic derives 74% of its revenue from Medicare, with the remaining sources of revenue
being Medicaid, commercial insurance and private payors.
The Company divested its interest in Avenue100 Media Solutions Inc., a digital marketing company headquartered in
Woburn, MA, in 2012. In addition, the Company sold its interest in the Bowater Mersey Paper Company Limited to the
Province of Nova Scotia in 2012.
Production and Raw Materials
The Post and El Tiempo Latino are produced at the printing plant of WP Company in Fairfax County, VA. The Herald, the
SCBJ and La Raza del Noroeste are produced at The Daily Herald Company’s plant in Everett, WA. The Gazette
Newspapers, Southern Maryland Newspapers,Express and the Fairfax County Times are printed at the commercial
printing facilities owned by PNM. Six military papers, one free weekly and one paid weekly from Southern Maryland are
printed at Chesapeake Publishing in Easton, MD. Greater Washington Publishing’s periodicals are produced by
independent contract printers.
In 2012, the Post and El Tiempo Latino consumed about 60,000 short tons of newsprint in WP Company’s printing plant
in Fairfax County, VA. Such newsprint was purchased from a number of suppliers, including Resolute, formerly
AbitibiBowater, Inc., which supplied approximately 43% of the 2012 newsprint requirements for these newspapers.
While the price of newsprint has been volatile historically, it has been steady since August of 2010. According to The
RISI East Coast Newsprint Price Index, which provides monthly single-price estimates based on marketplace surveys of
both buyers and sellers, 27.7 lb. newsprint (the kind of newsprint used by the Post and most of the newspapers published
by PNM) has been at $617 per short ton since August 2010. The RISI Index prices do not necessarily correspond with
28 THE WASHINGTON POST COMPANY