Washington Post 2012 Annual Report Download - page 51

advertisers. To the extent that advertisers shift advertising expenditures to other media outlets, the profitability of the
Company’s publishing and television broadcasting businesses will suffer.
• Increased Competition Resulting From Technological Innovations in News, Information and Video Programming
Distribution Systems
The development of DBS systems has significantly increased the competition faced by the Company’s cable television
systems. The continuing growth and technological expansion of Internet-based services has increased competitive pressure
on the Company’s media businesses. The development and deployment of new technologies have the potential to
negatively and dramatically affect the Company’s businesses in ways that cannot now be reliably predicted and that may
have a material adverse effect on the Company’s operating results.
• Changes in the Nature and Extent of Government Regulations of Television Broadcasting, Cable Television and
VoIP Services
The Company’s television broadcasting and cable television businesses operate in highly regulated environments. The
Company’s VoIP services business also is subject to a growing degree of regulation. Complying with applicable
regulations has significantly increased, and may continue to increase, the costs and has reduced the revenues of these
businesses. Changes in regulations have the potential to further negatively impact those businesses, not only by increasing
compliance costs and reducing revenues through restrictions on certain types of advertising, limitations on pricing flexibility
or other means, but also by possibly creating more favorable regulatory environments for the providers of competing
services. More generally, all of the Company’s businesses could have their profitability or their competitive positions
adversely affected by significant changes in applicable regulations.
• Potential Liability for Intellectual Property Infringement Could Adversely Affect the Company’s Businesses
The Company periodically receives claims from third parties alleging that the Company’s businesses infringe the
intellectual property rights of others. It is likely that the Company will continue to be subject to similar claims, particularly
as they relate to its media and cable businesses. For example, providers of services similar to those offered by Cable
ONE have been the target of patent infringement claims from time to time, relating to such matters as cable system
architecture, electronic program guides, cable modem technology and VoIP services. Other parts of the Company’s
business could also be subject to such claims. Addressing intellectual product claims is a time-consuming and expensive
endeavor, regardless of the merits of the claims. In order to resolve such a claim, the Company could determine the need
to change its method of doing business, enter into a licensing agreement or incur substantial monetary liability. It is also
possible that one of the Company’s businesses could be enjoined from using the intellectual property at issue, causing it to
significantly alter its operations. Although the Company cannot predict the impact at this time, if any such claims are
successful, then the outcome would likely affect the businesses utilizing the intellectual property at issue and could have a
material adverse effect on those businesses’ operating results or prospects.
• Failure to Comply With Privacy Laws or Regulations Could Have an Adverse Effect on the Company’s Business
Various federal, state and international laws and regulations govern the collection, use, retention, sharing and security of
consumer data. This area of the law is evolving, and interpretations of applicable laws and regulations differ. Legislative
activity in the privacy area may result in new laws that are relevant to the Company’s operations, for example, use of
consumer data for marketing or advertising. Claims of failure to comply with the Company’s privacy policies or
applicable laws or regulations could form the basis of governmental or private-party actions against the Company. Such
claims and actions may cause damage to the Company’s reputation and could have an adverse effect on the Company’s
business.
• Changes in the Cost or Availability of Raw Materials, Particularly Newsprint
The Company’s newspaper publishing businesses collectively spend significant amounts each year on newsprint.
Increases in the cost of newsprint or significant disruptions in the supply of newsprint could have a material adverse
effect on the operating results of the Company’s newspaper publishing businesses.
• Extensive Regulation of Health Care Industry Could Adversely Affect Celtic’s Business and Results of Operations
The home health and hospice industries are subject to extensive federal, state and local laws with regulations affecting
matters including licensure and certification, quality of services, qualifications of personnel, confidentiality and security of
medical records, relationships with physicians and other referral sources, operating policies and procedures, and billing
and coding practices. These laws and regulations and the manner in which they are interpreted are subject to change.
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