Washington Post 2009 Annual Report Download - page 31

On or prior to October 1, 2008, the Company elected retransmission consent status for its stations with respect to major
cable operators and the two DBS operators. These elections apply to the three-year period from January 1, 2009 through
December 31, 2011, and the Company has negotiated retransmission consent agreements with the major cable and
DBS operators serving each of its stations’ markets.
Ownership Limits. The FCC’s rules limit the number and type of media outlets in which a single person or entity may have
an attributable interest. Among other restrictions, the FCC’s local television multiple ownership rule generally permits one
company to own two television stations in the same market only if there are at least eight independently owned full-power
television stations in that market (including noncommercial stations and counting co-owned stations as one), and if at least
one of the commonly-owned stations is not among the top-four-ranked television stations in that market. In addition, the
FCC restricts so-called “cross-ownership” of newspapers and broadcast stations within a market. The Communications Act
requires the FCC to review its ownership rules periodically and to repeal or modify any rule that it determines is no longer
in the public interest.
In its 2008 ownership rules review order, the FCC liberalized its daily newspaper/broadcast cross-ownership rule to
presumptively allow newspaper/broadcast combinations in the 20 largest markets, subject to several fairly rigorous
economic hardship and public interest criteria. It also declined to modify its other ownership rules, including the local
television multiple ownership rule. A number of media companies and public interest groups have challenged the FCC’s
modification of the daily newspaper/broadcast cross-ownership rule and its retention of the other ownership rules. These
challenges are pending judicial review. Several public interest groups also have asked the FCC to reconsider its 2008
ownership rules review order; this request is also pending.
By law, a single person or entity may have an attributable interest in an unlimited number of television stations
nationwide, as long as the aggregate audience reach of such stations does not exceed 39% of nationwide television
households, and as long as the interest complies with the FCC’s other ownership restrictions.
Programming. Five of PNS’s six stations are affiliated with one or more of the national television networks, which provide
a substantial amount of programming to their television station affiliates. PNS’s Jacksonville station, WJXT, has operated as
an independent station since 2002. In addition, each of the Company’s stations receives programming from syndicators
and other third-party programming providers. PNS’s performance depends, in part, on the quality and availability of third-
party programming, and any substantial decline in the quality or availability of this programming could materially affect
PNS’s operations.
Public Interest Obligations. To satisfy FCC requirements, stations generally are expected to air a specified number of
hours of programming intended to serve the educational and informational needs of children and to complete reports on a
quarterly basis concerning the children’s programming that they broadcast. In addition, the FCC requires stations to limit
the amount of advertising that appears during certain children’s programs. This past year, the FCC began to consider
changes to its children’s programming rules in light of technological developments and changes in the video marketplace,
and Congress last year held a hearing on the same subject. No specific changes to the children’s programming
requirements have yet been adopted.
The FCC has considered imposing public interest programming requirements like those that apply to children’s
programming to broadcast television programming more broadly. In November 2007, the FCC adopted new “enhanced
disclosure” obligations for broadcasters that would require, among other things, reporting on public interest programming
and online posting for stations’ public files. However, these obligations are subject to administrative and judicial review
and therefore have not gone into effect.
In a separate “localism” proceeding, the FCC received comments on whether to adopt additional proposals, including
license renewal guidelines that would establish minimum amounts of locally-oriented programming, require broadcasters
to establish permanent community advisory boards and require stations to locate their main studios in their communities of
license. The localism proceeding is pending at the FCC.
It is not possible to predict what, if any, effect adoption of the proposed new obligations would have on PNS’s
operations, but a substantial increase in programming obligations could adversely affect PNS.
Political Advertising. The FCC regulates the sale of advertising by PNS’s stations to candidates for public office and
imposes other restrictions on the broadcast of political announcements more generally. The application of these
regulations may limit the advertising revenues of PNS’s television stations during the periods preceding elections.
Broadcast Indecency. The FCC’s policies prohibit the broadcast of indecent and profane material during certain hours of
the day, and the FCC regularly imposes monetary forfeitures when it determines that a television station violated that
policy. Court challenges concerning the validity of the FCC’s indecency policy are ongoing, and many broadcasters
have argued, among other things, that the FCC has failed to justify its indecency decisions adequately, that the FCC’s
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