iHeartMedia 2009 Annual Report Download - page 22

revenues with other radio stations and outdoor advertising companies, as well as with other media, such as newspapers, magazines,
television, direct mail, satellite radio and Internet based media, within their respective markets. Audience ratings and market shares
are subject to change, which could have the effect of reducing our revenues in that market. Our competitors may develop services or
advertising media that are equal or superior to those we provide or that achieve greater market acceptance and brand recognition than
we achieve. It is possible that new competitors may emerge and rapidly acquire significant market share in any of our business
segments. An increased level of competition for advertising dollars may lead to lower advertising rates as we attempt to retain
customers or may cause us to lose customers to our competitors who offer lower rates that we are unable or unwilling to match.
Our business is dependent upon the performance of on-air talent and program hosts, as well as our management team and other key
employees
We employ or independently contract with several on-air personalities and hosts of syndicated radio programs with
significant loyal audiences in their respective markets. Although we have entered into long-term agreements with some of our key on-
air talent and program hosts to protect our interests in those relationships, we can give no assurance that all or any of these persons
will remain with us or will retain their audiences. Competition for these individuals is intense and many of these individuals are under
no legal obligation to remain with us. Our competitors may choose to extend offers to any of these individuals on terms which we
may be unwilling to meet. Furthermore, the popularity and audience loyalty of our key on-air talent and program hosts is highly
sensitive to rapidly changing public tastes. A loss of such popularity or audience loyalty is beyond our control and could limit our
ability to generate revenues.
Our business is also dependent upon the performance of our management team and other key employees. Although we
have entered into long-term agreements with some of these individuals, we can give no assurance that all or any of our executive
officers or key employees will remain with us. Competition for these individuals is intense and many of our key employees are at-will
employees who are under no legal obligation to remain with us. In addition, any or all of our executive officers or key employees may
decide to leave for a variety of personal or other reasons beyond our control. Certain members of our senior management, including
Randall T. Mays, our former President and Chief Financial Officer, Herbert W. Hill, Jr., our Senior Vice President and Chief
Accounting Officer, Paul J. Meyer, our former President and Chief Executive Officer of our Americas division, and Andrew Levin,
our former Executive Vice President and General Counsel, have recently left the Company or changed their role within the Company.
Although we have hired several new executive officers, if we are unable to hire new employees to replace our senior managers or are
not successful in attracting, motivating and retaining other key employees, our business could be adversely affected.
Capital requirements necessary to implement strategic initiatives could pose risks
The purchase price of possible acquisitions, capital expenditures for deployment of digital billboards and/or other strategic
initiatives could require additional indebtedness or equity financing on our part. Since the terms and availability of this financing
depend to a large degree upon general economic conditions and third parties over which we have no control, we can give no
assurance that we will obtain the needed financing or that we will obtain such financing on attractive terms. In addition, our ability to
obtain financing depends on a number of other factors, many of which are also beyond our control, such as interest rates and national
and local business conditions. If the cost of obtaining needed financing is too high or the terms of such financing are otherwise
unacceptable in relation to the strategic opportunity we are presented with, we may decide to forego that opportunity. Additional
indebtedness could increase our leverage and make us more vulnerable to economic downturns and may limit our ability to withstand
competitive pressures.
N
ew technologies may affect our broadcasting operations
Our broadcasting businesses face increasing competition from new broadcast technologies, such as broadband wireless and
satellite radio, and new consumer products, such as portable digital audio players. These new technologies and alternative media
platforms compete with our radio stations for audience share and advertising revenues. The FCC has also approved new technologies
for use in the radio broadcasting industry, including the terrestrial delivery of digital audio broadcasting, which significantly enhances
the sound quality of radio broadcasts. We are unable to predict the effect such technologies and related services and products will
have on our broadcasting operations, but the capital expenditures necessary to implement such technologies could be substantial and
other companies employing such technologies could compete with our businesses.
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