iHeartMedia 2000 Annual Report Download - page 6

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6
The primary sources of programming for our ABC, NBC and CBS affiliated television stations
are their respective networks, which produce and distribute programming in exchange for each station’ s
commitment to air the programming at specified times and for commercial announcement time during the
programming. We supply the majority of programming to our FOX and UPN affiliates by selecting and
purchasing syndicated television programs. We compete with other television stations within each market
for these broadcast rights.
The second source of programming is the production of local news programming on the FOX,
CBS, ABC and NBC affiliate stations in Jacksonville, Florida; Harrisburg, Pennsylvania; Memphis,
Tennessee; Mobile, Alabama; Providence, Rhode Island; Cincinnati, Ohio; and Albany, New York.
Local news programming traditionally has appealed to a target audience of adults 25 to 54 years of age.
Because these viewers generally have increased buying power relative to viewers in other demographic
groups, they are one of the most sought-after target audiences for advertisers. With such programming,
these stations are able to attract advertisers to which they otherwise would not have access.
Media Representation
As a result of our August 30, 2000 merger with AMFM Inc., we now own the Katz Media Group,
a full-service media representation firm that sells national spot advertising time for clients in the radio and
television industries throughout the United States. Katz Media is one of the largest media representation
firms in the country, representing over 2,000 radio stations, 368 television stations and growing interests
in cable television stations.
Katz Media representation operations generate revenues primarily through contractual
commissions realized from the sale of national spot advertising air time. National spot advertising is
commercial air time sold to advertisers on behalf of radio and television stations and cable systems
located outside the local markets of those stations and systems. Katz Media represents its media clients
pursuant to media representation contracts, which typically have terms of up to ten years in initial length.
Sports Representation
As a result of our merger with SFX, we now operate in the sports representation business. Our
full-service sports marketing and management operations specialize in the representation of professional
athletes, integrated event management, television programming/production, and marketing consulting
services. Among our clients are several hundred professional athletes, including Michael Jordan, Kobe
Bryant (basketball), Roger Clemens (baseball), Greg Norman (golf), Andre Agassi (tennis), Jerry Rice
(football) and David Beckham (soccer – UK).
Our sports representation operations generate revenue primarily through the negotiation of
professional sports contracts and endorsement contracts for clients. The amount of endorsement and other
revenues that our clients generate is a function of, among other things, the clients’ professional
performances and public appeal.