Print Page  |  Close Window

Investor Relations

SEC Filings

GRAHAM HOLDINGS CO filed this Form 10-K on 03/29/1994
Entire Document
<PAGE>   15
which its circulation is less than that of the Seattle newspapers.  Numerous
weekly and semi-weekly newspapers and shoppers are distributed in The Herald's
principal circulation area.

     The circulation of The Gazette Newspapers is limited to Montgomery County
and parts of Frederick and Carroll Counties, Maryland (areas where The
Washington Post also circulates).  The Gazette Newspapers compete in varying
degrees with many advertising vehicles available in their service areas,
including The Potomac and Bethesda/Chevy Chase Almanacs, The Free Press and The
Western Montgomery Bulletin, weekly controlled-circulation community
newspapers, The Montgomery County Sentinel, a weekly paid-circulation community
newspaper, and The Montgomery County Journal, a daily paid-circulation
community newspaper (which also publishes two controlled- circulation weekly

     The Company's television stations compete for audiences and advertising
revenues with television and radio stations and cable television systems
serving the same or nearby areas and to a lesser degree with other media such
as newspapers and magazines.  Both independent stations and stations affiliated
with the Fox Broadcasting Network are becoming increasingly competitive, and
cable television systems are expanding their operations in the Company's
broadcast markets where they compete for television viewing in varying degrees
by importing out-of-market television signals and by distributing pay-cable,
advertiser-supported and other programming that is originated for cable
systems.  Some cable television programming services also compete with
television stations for exhibition rights to various syndicated programs and
sports events.  In addition, telephone companies have shown increasing interest
in providing cable television and other video services, such as the
video-dial-tone service recently authorized by the FCC, and Congress is
considering legislation to eliminate or scale back the prohibition on in-region
telephone company provision of cable television services.  With or without this
or other legislative changes, the Company's television stations may also become
subject to increased competition from low power television stations, wireless
cable services, direct home reception of satellite program services, satellite
master antenna systems (which can carry pay-cable and similar program
material), and prerecorded video programming.  Further, high definition and
other improved television technologies are being developed which in the future
may enhance the ability of some of these other video providers to compete for
viewers with the local television broadcasting stations owned by the Company.

     Cable television systems operate in a highly competitive environment.  In
addition to competing with the direct reception of television broadcast signals
by the viewer's own antenna, such systems (like existing television stations)
are subject to competition from other forms of television program delivery such
as low power television stations, direct home reception of satellite program
services, wireless cable services, satellite master antenna systems and
prerecorded video programming.  Various legislative and regulatory proposals
may also increase the competition faced by existing cable television systems
by, among other things, authorizing the provision of competing services by
local telephone companies.

     According to figures compiled by Publishers' Information Bureau, Inc., of
the 181 magazines reported on by the Bureau, Newsweek ranked fifth in total
advertising revenues in 1993, when it received approximately 3.4% of all
advertising revenues of the magazines included in the report.  The magazine
industry is highly competitive both within itself and with other advertising
media which compete for audience and advertising revenue.

     The Company's publications and television broadcasting and cable
operations also compete for readers' and viewers' time with various other
leisure-time activities.

     The future of the Company's various business activities depends on a
number of factors, including the general strength of the economy, population
growth, technological innovations and new entertain-