iHeartMedia 2004 Annual Report Download - page 3

PART I
ITEM 1. Business
The Company
Clear Channel Communications, Inc. is a diversified media company with three reportable business segments: radio broadcasting, outdoor
advertising and live entertainment. We were incorporated in Texas in 1974. As of December 31, 2004, we owned 1,189 domestic radio stations
and a leading national radio network. In addition, we had equity interests in various international radio broadcasting companies. For the year
ended December 31, 2004, the radio broadcasting segment represented 40% of our total revenue. As of December 31, 2004, we also owned or
operated 151,603 domestic outdoor advertising display faces and 671,977 international outdoor advertising display faces. For the year ended
December 31, 2004, the outdoor advertising segment represented 26% of our total revenue. In addition, we operate as promoters, producers and
venue operators for live entertainment events. As of December 31, 2004, we owned or operated 75 live entertainment venues domestically and
29 live entertainment venues internationally, which excludes 27 domestic venues and one international venue where we either own a non-
controlling interest or have booking, promotions or consulting agreements. For the year ended December 31, 2004, the live entertainment
segment represented 29% of our total revenue. We also own or program 40 television stations, own a media representation firm and represent
professional athletes, all of which are within the category “other”. This segment represented 5% of our total revenue for the year ended
December 31, 2004.
Our principal executive offices are located at 200 East Basse Road, San Antonio, Texas 78209 (telephone: [phone]).
Radio Broadcasting
Radio Stations
As of December 31, 2004, we owned 367 AM and 822 FM domestic radio stations, of which 498 stations were in the top 100 markets
according to the Arbitron fall 2004 ranking of U.S. markets. In addition, we currently own equity interests in various international radio
broadcasting companies, which we account for under the equity method of accounting. Our radio stations employ various formats for their
programming. A station’s format can be important in determining the size and characteristics of its listening audience. Advertisers often tailor
their advertisements to appeal to selected population or demographic segments.
Radio Networks
As of December 31, 2004, we owned a national radio network with a total audience of over 180 million weekly listeners. The network
syndicates talk programming including such talent as Rush Limbaugh, Bob and Tom, John Boy and Billy, Glenn Beck and Jim Rome,andmusic
programming including such talent as Delilah, Ryan Seacrest and Casey Kasem. We also operated several news and agricultural radio networks
serving Georgia, Ohio, Oklahoma, Texas, Iowa, Kentucky, Virginia, Alabama, Tennessee, Florida and Pennsylvania.
Most of our radio broadcasting revenue is generated from the sale of local and national advertising. Additional revenue is generated from
network compensation and event payments, barter and other miscellaneous transactions. Advertising rates charged by a radio station are based
primarily on the station’s ability to attract audiences having certain demographic characteristics in the market area that advertisers want to
reach, as well as the number of stations and other advertising media competing in the market and the relative demand for radio in any given
market.
Advertising rates generally are the highest during morning and evening drive-time hours. Depending on the format of a particular station,
there are certain numbers of advertisements that are broadcast each hour. We determine the number of advertisements broadcast hourly that can
maximize available revenue dollars without jeopardizing listening levels.
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