iHeartMedia 2007 Annual Report Download - page 18

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Other
The other category includes our media representation firm as well as other general support services and initiatives which are ancillary to
our other businesses.
M
edia Representation
We own Katz Media, a full-service media representation firm that sells national spot advertising time for clients in the radio and
television industries throughout the United States. As of December 31, 2007, Katz Media represents approximately 3,200 radio stations, nearly
one third of which are owned by us, and approximately 380 television stations, nearly one tenth of which are owned by us.
Katz Media generates revenue primarily through contractual commissions realized from the sale of national spot advertising airtime.
National spot advertising is commercial airtime sold to advertisers on behalf of radio and television stations. Katz Media represents its media
clients pursuant to media representation contracts, which typically have terms of up to ten years in length.
Television
As of December 31, 2007, we owned, programmed or sold airtime for 56 television stations, including 18 television stations distributed
as digital multicast stations. Our television stations are affiliated with various television networks, including ABC, CBS, NBC, FOX, CW,
CW100+, MyNetworkTV, Telemundo, our internally created Variety TV network and several independent, non-affiliated stations. Television
revenue is generated primarily from the sale of local and national advertising. Advertising rates depend primarily on the quantitative and
qualitative characteristics of the audience we can deliver to the advertiser. Our sales personnel sell local advertising, while national advertising
is primarily sold by national sales representatives.
The primary sources of programming for our 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 provide another source of programming to our stations by selecting and purchasing syndicated television
programs. We compete with other television stations within each market for these broadcast rights. We also provide local news programming
for the majority of our television stations.
On April 20, 2007, we entered into a definitive agreement with an affiliate of Providence to sell our television business. On
November 29, 2007, the FCC issued its initial consent order approving the assignment of our television station licenses to the buyer. A
representative of Providence has informed us that the buyer is considering its options under the definitive agreement, including not closing the
acquisition on the terms and conditions in the definitive agreement. The definitive agreement is in full force and effect, has not been terminated
and contains customary closing conditions. There have been no allegations that we have breached any of the terms or conditions of the
definitive agreement or that there is a failure of a condition to closing the acquisition. The sale of these assets is not a condition to the closing o
f
the Transactions and is not contingent on the closing of the Transactions.
Employees
As of February 13, 2008, we had approximately 23,400 domestic employees and 5,500 international employees of which approximately
28,000 were in operations and approximately 900 were in corporate related activities. Approximately 850 of our United States employees and
approximately 220 of our non-United States employees are subject to collective bargaining agreements in their respective countries. There are
numerous collective bargaining agreements, none of which represent a significant number of employees. We believe that our relationship with
our employees is good.
17
(2) Clear Channel Independent is headquartered and has the majority of its operations in South Africa, but also operates in other African
countries such as Angola, Botswana, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Swaziland, Tanzania, Uganda and Zambia. On
January 17, 2008, we entered into an agreement to sell our investment in Clear Channel Independent. The closing of the transaction is
subject to regulatory approval and other customary closing conditions.