According to Barrett, the pace of change in local television—once among the most predictable places in media—is, in a word, “breathtaking.” He cited a combination of technological innovation, content competition and the rapid emergence of new Web-based and wireless video platforms.

As Barrett explained, Hearst-Argyle has been putting together the top talent with the advantages of a national system to find ways to reach audiences beyond broadcast. Among the directions in 2006: developing feature-rich, easy-to-access Web sites that offer news and information, entertainment, interactive dialogue and a bundle of constantly changing Web-based services. These sites, he said, are portals to the community, and are already averaging more than 1.2 billion page views a year, with No. 1 sites in Boston, Sacramento, Pittsburgh, Baltimore, Kansas City, Mo., Milwaukee and Greenville, S.C.

“The level of content we provide to our viewers continues to improve as we upgrade our abilities to use our size and geographical scope to cover major local, national and even world events,” said Barrett. He points to the fifth anniversary of 9/11 coverage, which included reports from New York, Washington and Pennsylvania. Hearst-Argyle’s Washington, D.C., bureau and local station staff offered 165 live reports. “It was a phenomenal effort,” he said. “And it was possible because of HATSAT, our dedicated satellite system.”

The Company marked the Katrina tragedy—and its impact on Louisiana and Mississippi—and the heroic efforts of WDSU in New Orleans and WAPT in Jackson—with two specials: “Seven Days That Changed New Orleans” and “Song for New Orleans.” WDSU has continued providing daily coverage of the Katrina recovery, from New Orleans and distant points like Houston, as current—and former—New Orleans residents rely on these stations as their source of critical information.

The Company also enhanced its award-winning coverage of political news with Commitment 2006. Coverage focused on important races in Pennsylvania, New Jersey, Maryland, Missouri, California, Ohio, Massachusetts, Vermont, Hawaii, Florida and other states where Hearst- Argyle has stations. The Company was the first major TV station group to commit a minimum of 10 minutes of daily newscast time to political discourse in the periods leading up to primary and general elections.

Hearst-Argyle stations also led the information drive to explain to communities on air and on the Internet the threat of bird flu. Expert coverage included travel to Alaska, considered to be the front line against bird flu in America, to report on the early threat of a possible epidemic.

Barrett said the Company is aggressively pursuing its local digital growth strategy and operating oversight, with investments in digital-media companies such as Internet Broadcasting, a fast-growing builder of television Web sites, and Ripe Digital Entertainment, a leader in video-on-demand. Hearst-Argyle stations are also taking the lead in Wireless Application Protocol (WAP) content, podcasts, Web-based newscasts and video, and blogs in a broad cross-section of markets.

Another venture, NBCWeatherPlus.com, is the online extension of the company’s successful series of local Weather Plus digital TV channels, co-developed with NBC. Hearst-Argyle’s NBC stations have launched Weather Plus digital broadcasts, with cable available over the air and on digital systems in various markets. Other digital initiatives are in development in the station group’s markets.

“We are also working to increase the extent of our distribution,” Barrett explained. He noted that the major phone companies are moving quickly to build out a new generation of digital connections to homes. Internet Protocol Television (IPTV) brings a new level of television service—fully interactive, on- demand and high quality.

In 2006, Hearst-Argyle entered an agreement with Verizon, an early mover in creating new fiber-optic television infrastructures. Verizon carries the Company’s stations in Boston; Manchester, N.H.; Baltimore and Tampa on its next-generation distribution platform.

Hearst-Argyle also signed agreements with a number of leading cable and satellite program distributors in 2006, reaffirming the value of its leading local content to program distributors—and adding revenue.