iHeartMedia 2001 Annual Report Download - page 7

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7
Media Representation
We 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 2,400 radio
stations, 370 television stations and growing interests in the representation of cable television system
operators.
Katz Media generates 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 initial terms of up to ten years in length.
Sports Representation
We 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 (basketball), Kobe Bryant
(basketball), Roger Clemens (baseball), Greg Norman (golf), Andre Agassi (tennis), Jerry Rice (football)
and David Beckham (soccer – UK).
Our sports representation business generates 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.
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 national platform 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 often able to improve the operations of assets we acquire, thus
further enhancing our value of those assets.