iHeartMedia 2000 Annual Report Download - page 7

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Internet Group
Our Internet group was formed in the fall of 2000. The goal of the Internet group is to develop
and maintain an integral web network across all of our businesses, including radio broadcasting, outdoor
advertising and live entertainment.
Company Strategy
Since our inception, we have focused on helping our clients distribute their marketing messages
in the most efficient ways possible. We believe our ultimate success is measured by how well we assist
our clients in selling their products and services. To this end, we have assembled a variety of media
assets designed to provide the most efficient and cost-effective ways for our clients to reach consumers.
These assets are comprised of radio and television broadcasting assets, outdoor advertising displays and
live entertainment venues and productions. We have combined these assets with the talent and motivation
of our entrepreneurial managers to create strong internal growth. We plan to continue this effort in order
to serve our clients, listeners, viewers, audiences and investors.
A portion of our growth has been achieved through acquiring highly complementary assets in
radio and television broadcasting, outdoor advertising and live entertainment. We have found that
geographically diversified assets give our clients more flexibility in the distribution of their messages, and
therefore allows us to provide these clients with a higher level of service. To this end, we evaluate
potential acquisitions based on the returns they can potentially provide on invested capital, as well as the
positive impact they might have on our existing businesses. In addition, given our experience in the
industries in which we operate, we are able to improve the operations of assets we acquire, thus further
enhancing our value of those assets.
Additionally, we seek to create situations in which we own more than one type of medium in the
same market. Aside from the provision of added flexibility to our clients, this “cross-ownership” allows
us ancillary benefits, such as the use of otherwise vacant outdoor advertising space to promote our
broadcasting assets, or the sharing of on-air talent across our broadcasting assets to promote one of our
live entertainment events or venues.
To support our radio broadcasting, outdoor advertising and live entertainment strategies, we have
decentralized our operating structure in order to place authority, autonomy and accountability at the
market level which provides local management with tools necessary to serve our clients. We believe that
one of our strongest competitive advantages is our unique blend of highly experienced corporate and local
market management. We believe that the combination of historically stable revenue growth within the
industries we operate, coupled with a fixed expense structure and minimal requirements for ongoing
capital expenditures, as well as our financial discipline, gives us an excellent forum in which to generate
free cash flow and provide value to our investors.
Radio Broadcasting
Our radio broadcasting strategy entails improving the ongoing operations of our existing stations,
as well as the acquisition of stations. Our acquisition strategy has created a national footprint that allows
us to deliver targeted messages for specific audiences to advertisers on a local, regional, and national
basis. We believe in clustering our radio stations in markets to increase our individual market share
thereby allowing us to offer our advertisers more advertising options that can reach many audiences. We
believe owning multiple radio stations in a market allows us to provide our listeners with a more diverse
programming selection and a more efficient means for our advertisers to reach those listeners. By
clustering our stations, we are also able to operate our stations with more highly skilled local management
teams and eliminate duplicative operating and overhead expenses. In addition to the economies of scale