Washington Post 2015 Annual Report Download - page 30

degrees in Hong Kong. Kaplan also offers a proprietary pre-college diploma program through Kaplan Business
and Accountancy School.
In August 2014, Kaplan entered into an agreement in China to sell both its ACCA training programs business and
four schools that deliver university preparation programs. Final local transfer mechanics were completed in
January 2015. Kaplan continues to retain franchise arrangements with third parties in China to deliver programs.
In June 2014, Kaplan Holdings Limited (Hong Kong) signed a joint venture agreement with CITIC Press
Corporation. Under the terms of the agreement, the parties have now incorporated a joint venture company,
Kaplan CITIC Education Co. Limited, which is 49% owned by Kaplan Holdings Limited. The joint venture
company will undertake training consultancy and related businesses in China.
Each of Kaplan’s international businesses is subject to unique and often complex regulatory environments in the
countries in which they operate. The degree of consistency in the application and interpretation of such
regulations can vary significantly in certain jurisdictions, which can make compliance challenging. No assurance
can be given that Kaplan will be able to comply with foreign regulations, and failure to do so could materially
and adversely affect Kaplan’s operating results.
TELEVISION BROADCASTING
Graham Media Group, Inc. (GMG), a subsidiary of the Company, owns five television stations, located in
Houston, TX; Detroit, MI; Orlando, FL; San Antonio, TX; and Jacksonville, FL. as well as SocialNewsDesk, a
provider of social-media, management tools designed to connect newsrooms with their users. 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, 2022 Dec. 31, 2016 14
WDIV, Detroit, MI, 1947 ................ 13th NBC Oct. 1, 2021 Dec. 31, 2016 8
WKMG, Orlando, FL, 1954 .............. 19th CBS Feb. 1, 2021 April 6, 2019 12
KSAT, San Antonio, TX, 1957 ............ 32nd ABC Aug. 1, 2022 Dec. 31, 2021 12
WJXT, Jacksonville, FL, 1947 ............ 47th None Feb. 1, 2021 — 7
(a) Source: 2015/2016 DMA Market Rankings, Nielsen Media Research, fall 2015, 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.
Revenue from broadcasting operations is derived primarily from the sale of advertising time to local, regional
and national advertisers. In 2015, advertising revenue accounted for 77% of the total for GMG’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. These factors 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 among others.
Regulation of Broadcasting and Related Matters
GMG’s television broadcasting operations are subject to the jurisdiction of the U.S. Federal Communications
Commission (FCC) under the U.S. Federal Communications Act of 1934, as amended (the Communications
Act). Each GMG television station holds an FCC license that is renewable upon application for an eight-year
period.
15 GRAHAM HOLDINGS COMPANY