Washington Post 2004 Annual Report Download - page 34

more detail in the preceding paragraph) have been growing rapidly and are now a significant competitive factor. The
ability of DBS operators to provide local-into-local service (as described above) has increased competition between
cable and DBS operators in markets where local-into-local service is provided. DBS operators are not required to provide
local-into-local service, and some smaller markets may not receive this service for several years. However, local-into-local
service is currently being offered by at least one DBS operator in most markets in which the Company provides cable
television service. In December 2003 News Corporation Limited (""News Corp''), a global media company that in the
United States owns the Fox Television Network, 35 broadcast television stations, a group of regional sports networks and
a number of nationally distributed cable networks (including the Fox News Channel, FX, the Fox Movie Channel, the Speed
Channel and the National Geographic Channel), acquired a controlling interest in DirecTV. This acquisition was approved
by the FCC in an order that, among other things, requires News Corp to offer carriage of its broadcast television stations
and access to its cable programming services to cable television systems and other multichannel video programming
distributors on nonexclusive and nondiscriminatory terms and conditions. Notwithstanding the requirements imposed by the
FCC, this acquisition has the potential not only to enhance DirecTV's effectiveness as a competitor, but also to limit the
access of cable television systems to desirable programming and to increase the costs of such programming. The
Company's cable television systems also compete with wireless cable services in several of their markets and may face
additional competition from such services in the future. Moreover, the Telecommunications Act of 1996 permits telephone
companies to own and operate cable television systems in the same areas where they provide telephone services and thus
may lead to the provision of competing program delivery services by local telephone companies. Telephone companies
can also compete with cable television systems in providing broadband Internet access by using DSL and other
technologies. Some telephone companies have entered into strategic partnerships with DBS operators that permit the
telephone company to package the video programming services of the DBS operator with the telephone company's own
DSL service, thereby competing directly with the video programming and cable modem services being offered by existing
cable television systems.
Kaplan competes in each of its test preparation product lines with a variety of regional and national test preparation
businesses, as well as with individual tutors and in-school preparation for standardized tests. Kaplan's Score Education
subsidiary competes with other regional and national learning centers, individual tutors and other educational businesses
that target parents and students. Kaplan's Professional Division competes with other companies that provide alternative or
similar professional training, test preparation and consulting services. Kaplan's Higher Education Division competes with
both facilities-based and other distance learning providers of similar educational services, including not-for-profit colleges
and universities and for-profit businesses. Overseas, both The Financial Training Company and Dublin Business School
compete with other for-profit companies and with governmentally supported schools and institutions that provide similar
training and educational programs.
According to figures compiled by Publishers' Information Bureau, Inc., of the 226 magazines reported on by the Bureau,
Newsweek ranked fifth in total advertising revenues in 2004, when it received approximately 2.6% of all advertising
revenues of the magazines included in the report. The magazine industry is highly competitive, both within itself and with
other advertising media that compete for audience and advertising revenue.
PostNewsweek Tech Media's publications and trade shows compete with many other advertising vehicles and sources of
similar information.
The Company's publications and television broadcasting and cable operations also compete for readers' and viewers'
time with various other leisure-time activities.
The future of the Company's various business activities depends on a number of factors, including the general strength of
the economy; population growth and the level of economic activity in the particular geographic and other markets it serves;
the impact of technological innovations on entertainment, news and information dissemination systems; overall advertising
revenues; the relative efficiency of publishing and broadcasting compared to other forms of advertising; and, particularly in
the case of television broadcasting and cable operations, the extent and nature of government regulations.
Executive Officers
The executive officers of the Company, each of whom is elected for a one-year term at the meeting of the Board of
Directors immediately following the Annual Meeting of Stockholders held in May of each year, are as follows:
Donald E. Graham, age 59, has been Chairman of the Board of the Company since September 1993 and Chief Executive
Officer of the Company since May 1991. Mr. Graham served as President of the Company from May 1991 until
18 THE WASHINGTON POST COMPANY