Washington Post 2008 Annual Report Download - page 40

market crisis and economic downturn has reduced advertising expenditures of many of our advertisers, which has had a
negative impact on the operating results of the Company’s newspaper and magazine publishing and television
broadcasting businesses. A continued decline in general economic conditions in the United States may have a material
adverse effect on the operating results of the Company’s businesses.
• Changing Preferences of Readers Or Viewers Away From Traditional Media Outlets
The rates that the Company’s publishing and television broadcasting businesses can charge for advertising are directly
related to the number of readers and viewers of its publications and broadcasts. There is tremendous competition for
readers and viewers from other media. The Company’s publishing and television broadcasting businesses will be
adversely affected to the extent that individuals decide to obtain news, entertainment, classified listings and local
shopping information from Internet-based or other media to the exclusion of the Company’s publications and broadcasts.
• Changing Perceptions About the Effectiveness of Publishing and Television Broadcasting in Delivering Advertising
Historically, newspaper and magazine publishing and television broadcasting have been viewed as cost-effective
methods of delivering various forms of advertising. There can be no guarantee that this historical perception will guide
future decisions on the part of 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 direct broadcast satellite systems has significantly increased the competition faced by the Company’s
cable television systems. In addition, 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 has the potential to negatively and dramatically affect the Company’s businesses in ways that cannot now
be reliably predicted.
• Changes in the Nature and Extent of Government Regulations, Particularly in the Case 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 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 (through restrictions on certain types of advertising, limitations on pricing flexibility or other means)
reducing revenues, 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 Patent Infringement in the Cable Industry
Providers of services similar to those offered by the Company’s Cable ONE subsidiary 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. Although we cannot predict the impact at this juncture, if any such claims are
successful, the outcome would likely affect Cable ONE, as well as all other cable operators in the United States.
• 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. Material
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.
Item 1B. Unresolved Staff Comments.
Not applicable.
Item 2. Properties.
Directly or through subsidiaries, Kaplan owns a total of 11 properties: a 30,000-square-foot six-story building located at
131 West 56th Street in New York City, which serves as an educational center primarily for international students; a
39,000- square-foot four-story brick building and a 19,000 square-foot two-story brick building in Lincoln, NE, each of
which is used by Kaplan University; a 4,000-square-foot office condominium in Chapel Hill, NC, which it utilizes for its
28 THE WASHINGTON POST COMPANY