Washington Post 2003 Annual Report Download - page 30

compete with existing cable systems, enable cable operators to oÅer certain services outside of cable regulation or otherwise
materially aÅect cable television operations.
The regulation of certain cable television rates pursuant to the authority granted to the FCC has negatively impacted the
revenues of the Company's cable systems. The Company is unable to predict what effect the other matters discussed in this
section may ultimately have on its cable television business.
Magazine Publishing
Newsweek
Newsweek is a weekly news magazine published both domestically and internationally by Newsweek, Inc., a subsidiary of
the Company. In gathering, reporting and writing news and other material for publication, Newsweek maintains news
bureaus in 9 U.S. and 11 foreign cities.
The domestic edition of Newsweek includes more than 100 different geographic or demographic editions which carry
substantially identical news and feature material but enable advertisers to direct messages to specific market areas or
demographic groups. Domestically, Newsweek ranks second in circulation among the three leading weekly news
magazines ( Newsweek, Time and U.S. News & World Report ). For each of the last Ñve years Newsweek 's average weekly
domestic circulation rate base has been 3,100,000 copies. In 1999 Newsweek 's percentage of the total weekly domestic
circulation rate base of the three leading weekly news magazines was 33.5%. Since 2000 that percentage has been 34.0%.
Newsweek is sold on newsstands and through subscription mail order sales derived from a number of sources, principally
direct mail promotion. The basic one-year subscription price is $41.08. Most subscriptions are sold at a discount from the
basic price. In May 2001, Newsweek 's newsstand cover price was increased from $3.50 per copy (which price had
been in effect since April 1999) to $3.95 per copy.
Newsweek 's published advertising rates are based on its average weekly circulation rate base and are competitive with
those of the other weekly news magazines. As is common in the magazine industry, advertising typically is sold at varying
discounts from Newsweek 's published rates. Effective with the January 13, 2003 issue, Newsweek 's published national
advertising rates for all categories of such advertising were increased by 4.8%. Beginning with the issue dated
January 12, 2004, such rates were increased again, in this case by an average of approximately 4.5%.
Internationally, Newsweek is published in a Europe, Middle East and Africa edition (formerly called the Atlantic edition); a
Pacific edition covering Japan, Korea and south Asia; and a Latin American edition; all of which are in the English
language. Editorial copy solely of domestic interest is eliminated in the international editions and is replaced by other
international, business or national coverage primarily of interest abroad. Newsweek estimates that the combined average
weekly paid circulation for these English-language international editions of Newsweek in 2003 was approximately
600,000 copies.
Since 1984 a section of Newsweek articles has been included in The Bulletin, an Australian weekly news magazine which
also circulates in New Zealand. A Japanese-language edition of Newsweek, Newsweek Nihon Ban, has been published
in Tokyo since 1986 pursuant to an arrangement with a Japanese publishing company which translates editorial copy, sells
advertising in Japan and prints and distributes the edition. Newsweek Hankuk Pan, a Korean-language edition of
Newsweek, began publication in 1991 pursuant to a similar arrangement with a Korean publishing company. Newsweek
en Espa ¿nol,
a Spanish-language edition of Newsweek which has been distributed in Latin America since 1996, is currently
being published under an agreement with a Mexico-based company which translates editorial copy, prints and distributes
the edition and jointly sells advertising with Newsweek. Newsweek Bil Logha Al-Arabia, an Arabic-language edition of
Newsweek, began publication in 2000 under a similar arrangement with a Kuwaiti publishing company. Also, Newsweek
Polska,
a Polish-language newsweekly, was launched in September 2001 under a licensing agreement with a Polish
publishing company which, in addition to translating selected stories from Newsweek 's various U.S. and foreign editions,
has established a staff of Polish reporters and editors for the magazine. In December 2002 Newsweek announced an
agreement with a Hong Kong-based publisher to publish Newsweek Select, a Chinese-language magazine based primarily
on selected content translated from Newsweek 's U.S. and international editions. Limited distribution of Newsweek Select
began in Hong Kong the second half of 2003. Newsweek estimates that the combined average weekly paid circulation of
The Bulletin insertions and the foreign-language international editions of Newsweek was more than 500,000 copies in
2003.
10 THE WASHINGTON POST COMPANY