Washington Post 2007 Annual Report Download - page 27

of lower-definition television programming (“multicasting”), and that also is capable of accommodating subscription
video and data services known as “ancillary and supplementary” services. Broadcasters may offer a combination of
services as long as they transmit at least one stream of free video programming on the DTV channel. Broadcasters that
offer ancillary and supplementary services must pay a fee to the FCC of 5% of the gross revenues generated from such
services. No Company station currently offers ancillary and supplementary services.
While most full-power television stations (including each station owned by the Company) are currently using two
broadcast channels to operate both analog and DTV services, Congress has required broadcasters to terminate
analog service by February 17, 2009. After that date, stations will operate on only one channel in a digital-only
format. To determine the channel on which their stations will operate after the transition to digital television is complete,
broadcasters were generally permitted to choose between each station’s current analog channel and current DTV
channel, provided that those channels are between channels 2 and 51.
All of the Company’s TV stations except WKMG have two channels that are within this range, and they have
accordingly elected to operate on either their existing analog or digital channel. Two of the Company’s stations —
WPLG and KSAT — are returning to their current analog channels for their final digital operations. These stations must
request construction permits from the FCC in order to build their final, post-transition facilities. WPLG’s plan to construct
a new broadcast tower for post-transition use has been delayed due to local regulatory issues, and it is unclear whether
this delay will affect the station’s ability to timely complete construction of its final DTV facilities. Three stations (KPRC,
WDIVand WJXT) are already operating on their post-transition DTV channels and have completed construction of what
the FCC considers to be their final DTV facilities. Finally, because WKMG’s current DTV channel is not within the
permitted range for post-transition channels and technical issues prevent post-transition use of the station’s analog
channel, in August 2007 the FCC approved WKMG’s request to use another channel allotment between channels 2
and 51 as its DTV channel when all-digital operations commence. WKMG has requested that the FCC modify the final
DTV facilities the FCC originally specified for the station because the specified facilities cannot be exactly constructed.
This request for modification was unopposed, and it remains pending.
The FCC has a policy of reviewing its DTV rules periodically to determine whether those rules need to be adjusted in
light of new developments. In December 2007, the FCC issued an order in its third periodic review of the DTV
transition. Among other changes, the order established deadlines for the construction of final digital facilities and
provided flexibility for stations in certain circumstances to transition to their final facilities before or after February 17,
2009. The order also established other rules that will apply to the Company’s stations, including technical rules such as
those governing the DTV transmission standards.
Full-power digital television stations, including the Company’s stations, may experience interference from a variety of
sources, such as other full-power stations and low-power television stations that have been authorized to provide digital
service on either the low-power station’s existing analog channel or a different channel. In addition, in the future,
broadcast stations may experience interference from electronic devices that the FCC may allow to be operated on an
unlicensed basis. In connection with its third periodic review, the FCC adopted rules to limit the amount of interference
that full-power digital television stations may cause to other stations. Low-power stations are required to accept
interference from and avoid interference to full-power broadcasters. Certain low-power stations, known as “Class A”
LPTV stations, have greater interference protection rights, and protecting such stations may limit the Company’s ability
to expand its television service in the future. Notwithstanding the FCC’s interference protection rules, full-power
broadcast stations may experience interference from other television stations.
Public Interest Obligations. In November 2007, the FCC imposed new public interest obligations for broadcasters.
Among other changes, the FCC announced that it will require broadcasters to report on the amount and type of public
interest programming they offer and to make their public inspection files available over the Internet. The FCC has also
requested comment on additional proposals, including its tentative conclusions to adopt “processing guidelines” that
establish minimum amounts of locally-oriented programming broadcasters should provide and to require broadcasters
to establish permanent community advisory boards.
Children’s Programming Obligations. New children’s programming obligations for digital television took effect in
January 2007. Under the new rules, stations must air three hours of “core” children’s programming on their primary
digital video stream and additional core children’s programming if they also broadcast free multicast video streams.
“Core” programming includes programming that serves the educational needs of children, is at least 30 minutes long
and airs between 7 a.m. and 10 p.m. In addition, stations must limit the type of advertising that may be broadcast
during programming intended for young children.
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