iHeartMedia 2007 Annual Report Download - page 11

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R
adio Networks
In addition to radio stations, our Radio Broadcasting segment includes our Premiere Radio Network, a national radio network that
produces, distributes or represents more than 70 syndicated radio programs and services for more than 5,000 radio station affiliates. Our broad
distribution platform enables us to attract and retain top programming talent. Some of our more popular radio programs include Rush
L
imbaugh, Steve Harvey, Ryan Seacrest and Jeff Foxworthy.
We also own various sports, news and agriculture networks serving Alabama, California, Colorado, Florida, Georgia, Iowa, Kentucky,
Missouri, Ohio, Oklahoma, Pennsylvania, Tennessee and Virginia.
We believe recruiting and retaining top talent is an important component of the success of our radio networks. Given our scale, market
position and distribution platform, we believe that we have a competitive advantage relative to other radio networks with regards to attracting
on-air talent.
I
nternational Radio Investments
We own equity interests in various international radio broadcasting companies located in Australia (50% ownership), Mexico (40%
ownership) and New Zealand (50% ownership), which we account for under the equity method of accounting.
Americas Outdoor Advertising
Our Americas Outdoor Advertising segment consists of our operations in the United States, Canada and Latin America, with
approximately 93% of our 2007 revenue in this segment derived from the United States. The Americas Outdoor Advertising segment includes
advertising display faces which we own or operate under lease management agreements. Americas Outdoor Advertising generated 21%, 20%
and 20% of our consolidated net revenue in 2007, 2006 and 2005, respectively.
Sources of Revenue
Americas Outdoor Advertising revenue is derived from the sale of advertising copy placed on our display inventory. Our display
inventory consists primarily of billboards, street furniture displays and transit displays. The margins on our billboard contracts tend to be higher
than those on contracts for other displays. The following table shows the approximate percentage of revenue derived from each category for our
Americas Outdoor Advertising inventory:
Our Americas Outdoor Advertising segment generates revenues from local, regional and national sales. Our advertising rates are based
on a number of different factors including location, competition, size of display, illumination,
10
(a) Includes 260 stations reported as discontinued operations as of December 31, 2007. Our merger is not contingent on the sales of these
stations, and the sales of these stations are not contingent on the closing of our merger.
(b) Excluded from the 1,005 radio stations owned or operated by us are 5 radio stations programmed pursuant to a local marketing agreement
or shared services agreement (FCC licenses not owned by us) and one Mexican radio station that we provide programming to and sell
airtime for under exclusive sales agency arrangements. Also excluded are radio stations in Australia, New Zealand and Mexico. We own
a 50%, 50% and 40% equity interest in companies that have radio broadcasting operations in these markets, respectively.
Year Ended December 31,
2007 2006 2005
Billboards
Bulletins
(1)
52% 52% 54%
Posters 16% 18%19%
Street furniture displays 4% 4% 4%
Transit displays 16% 14%11%
Other displays
(2)
12% 12% 12%
Total 100% 100%100%
(1) Includes digital displays.
(2) Includes spectaculars, mall displays and wallscapes.