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Television Broadcasting
Post–Newsweek Stations, Inc. (PNS), a subsidiary of the Company, owns six television stations located in Houston, TX;
Detroit, MI; Miami, FL; Orlando, FL; San Antonio, TX; and Jacksonville, FL. The following table sets forth certain
information with respect to each of the Company’s television stations:
Station Location and
Year Commercial
Operation
Commenced
National
Market
Ranking (a)
Primary
Network
Affiliation
Expiration
Date of FCC
License
Expiration
Date of
Network
Agreement
Total
Commercial
Stations
in DMA (b)
KPRC,
Houston, TX, 1949 10th NBC Aug. 1, 2014 Dec. 31, 2016 14
WDIV,
Detroit, MI, 1947 11th NBC Oct. 1, 2013 Dec. 31, 2016 8
WPLG,
Miami, FL, 1961 16th ABC Feb. 1, 2013 Feb. 29, 2012(c) 13
WKMG,
Orlando, FL, 1954 19th CBS Feb. 1, 2013 Apr. 6, 2015 13
KSAT,
San Antonio, TX, 1957 36th ABC Aug. 1, 2014 Feb. 29, 2012(c) 10
WJXT,
Jacksonville, FL, 1947 50th None Feb. 1, 2013 — 7
(a) Source: 2011/2012 DMA Market Rankings, Nielsen Media Research, fall 2011, based on television homes in DMA (see note (b) below).
(b) Designated Market Area (“DMA”) is a market designation of A.C. Nielsen that defines each television market exclusive of another, based on
measured viewing patterns.
(c) The Company presently is negotiating a new affiliation agreement for these stations with the ABC Television Network.
Revenue from broadcasting operations is derived primarily from the sale of advertising time to local, regional and national
advertisers. In 2011, advertising revenue accounted for 90% of the total for PNS’s operations. Advertising revenue is
sensitive to a number of factors, some specific to a particular station or market and others more general in nature. Some
examples include a station’s audience share and market ranking; seasonal fluctuations in demand for air time; annual or
biannual events, such as sporting events and political elections; and broader economic trends.
Regulation of Broadcasting and Related Matters
PNS’s television broadcasting operations are subject to the jurisdiction of the FCC under the Communications Act. The
FCC assigns frequency bands for broadcast and other uses; manages broadcast licensing; regulates equipment used by
stations; and adopts and implements regulations and policies that directly or indirectly affect the ownership, operations
and profitability of broadcasting stations, among other things.
Each PNS television station holds an FCC license that is renewable upon application for an eight-year period.
Digital Television (DTV) and Spectrum Issues. Each PNS station (and each full-power television station nationwide)
now broadcasts only in digital format. The digital broadcast format allows transmission of HDTV programming, multiple
channels of standard-definition television programming (multicasting), subchannels of programming designed for reception
by mobile devices (mobile DTV) and subscription video and data services known as “ancillary and supplementary”
services. PNS, along with other broadcasting companies, has been actively pursuing the use of digital spectrum to
provide mobile DTV to consumers, in partnership with consumer electronics manufacturers and others.
Television stations may receive interference from a variety of sources, including interference from other broadcast stations,
that is below a threshold established by the FCC. That interference could limit viewers’ ability to receive television stations’
signals. The amount of interference to stations may increase in the future because of the FCC’s decision to allow
electronic devices known as “white space” devices to operate in the television frequency band on an unlicensed basis.
Although a small number of challenges to the white space rules remain pending at the FCC and before a court, in January
2011, the FCC conditionally selected several entities to administer databases with information about television station
service areas that will be used to avoid interference by white space devices. In addition, in December 2011, the FCC
authorized the first database to begin live operations and approved the first white space device.
Pursuant to a statutory requirement, the FCC’s NB Plan was submitted to Congress in March 2010. In connection with the
NB Plan, the FCC and Congress are considering reallocation of spectrum for use by wireless broadband providers,
including substantial amounts of spectrum currently in the television broadcast band. One of the proposals of the NB Plan
is that Congress authorize incentive auctions, whereby the government would auction spectrum relinquished by broadcast
television stations in exchange for a share of the auction revenues. The FCC commenced a rulemaking proceeding in
2011 FORM 10-K 23