iHeartMedia 2009 Annual Report Download - page 5

We believe we offer advertisers a diverse platform of media assets across geographies, radio programming formats and
outdoor products. We intend to continue to execute upon our long-standing radio broadcasting and outdoor advertising strategies,
while closely managing expenses and focusing on achieving operating efficiencies throughout our businesses. Within each of our
operating segments, we share best practices across our markets in an attempt to replicate our successes throughout the markets in
which we operate.
Radio Broadcasting
As of December 31, 2009, we owned 894 domestic radio stations, with 149 stations operating in the 25 largest markets. For
the year ended December 31, 2009, Radio Broadcasting represented 49% of our consolidated net revenue. Our portfolio of stations
offers a broad assortment of programming formats, including adult contemporary, country, contemporary hit radio, rock, urban and
oldies, among others, to a total weekly listening base of more than 113 million individuals based on Arbitron National Regional
Database figures for the Spring 2009 ratings period. Our radio broadcasting business includes radio stations for which we are the
licensee and for which we program and/or sell air time under local marketing agreements (“LMAs”) or joint sales agreements
(“JSAs”).
In addition to our radio broadcasting business, we operate Premiere Radio Networks, a national radio network that
produces, distributes or represents approximately 90 syndicated radio programs and services for approximately 5,000 radio station
affiliates. We also own various sports, news and agriculture networks.
Strategy
Our radio broadcasting strategy centers on providing programming and services to the local communities in which we
operate and being a contributing member of those communities. We believe that by serving the needs of local communities, we will
be able to grow listenership and deliver target audiences to advertisers.
Our radio broadcasting strategy also focuses on driving revenue growth in our stations through effective programming,
promotion, and marketing and sales. We seek to maximize revenue by closely managing on-air inventory of advertising time and
adjusting prices to local market conditions. We operate price and yield optimization systems and information systems, which provide
detailed inventory information. These systems enable our station managers and sales directors to adjust commercial inventory and
pricing based on local market demand, as well as to manage and monitor different commercial durations (60 second, 30 second, 15
second and five second) in order to provide more effective advertising for our customers at what we believe are optimal prices given
market conditions.
We focus on enhancing the radio listener experience by offering a wide variety of compelling content. We believe our
investments in radio programming over time have created a collection of leading on-air talent. The distribution platform provided by
Premiere Radio Networks allows us to attract talent and more effectively utilize quality content across many stations.
Our strategy also entails improving the ongoing operations of our stations through careful management of costs. In the
fourth quarter of 2008, CCMH commenced a restructuring plan to reduce our cost base through workforce reductions, the elimination
of overlapping functions and other cost savings initiatives. In order to achieve these cost savings, we incurred a total of $121.5 million
in costs in 2008 and 2009. We estimate the benefit of the restructuring program was an approximate $267.3 million aggregate
reduction to fixed operating expenses in 2009 and that the additional benefits of these initiatives will be realized in 2010.
No assurance can be given that the restructuring program will achieve all of the anticipated cost savings in the timeframe
expected or at all, or that the cost savings will be sustainable. In addition, we may modify or terminate the restructuring program in
response to economic conditions or otherwise.
We are also continually expanding content choices for our listeners, including utilization of HD radio, Internet and other
distribution channels with complementary formats. HD radio enables crystal clear reception, interactive features, data services and
new applications. Further, HD radio allows for many more stations, providing greater variety of content which may enable advertisers
to target consumers more effectively. The interactive capabilities of HD radio will potentially permit us to participate in commercial
download services. In addition, we provide streaming audio via the Internet, mobile and other digital platforms and, accordingly, have
increased listener reach and developed new listener applications as well as new advertising capabilities. As a result, we rank among
the top streaming networks in the US with regards to Average Active Sessions (“AAS”), Session Starts (“SS”) and Average Time
Spent Listening (“ATSL”) according to Ando Media. AAS and SS measure the level of activity while ATSL measures the ability
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