iHeartMedia 2011 Annual Report Download - page 10

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Street Furniture Displays
Our street furniture displays include advertising surfaces on bus shelters, information kiosks, freestanding units and other
public structures, are available in both traditional and digital formats, and are primarily located in major metropolitan areas and along
major commuting routes. Generally, we own the street furniture structures and are responsible for their construction and maintenance.
Contracts for the right to place our street furniture displays in the public domain and sell advertising space on them are awarded by
municipal and transit authorities in competitive bidding processes governed by local law. Generally, these contracts have terms
ranging from 10 to 20 years. As compensation for the right to sell advertising space on our street furniture structures, we pay the
municipality or transit authority a fee or revenue share that is either a fixed amount or a percentage of the revenue derived from the
street furniture displays. Typically, these revenue sharing arrangements include payments by us of minimum guaranteed amounts.
Client contracts for street furniture displays typically have terms ranging from four weeks to one year, and are typically for network
packages of multiple street furniture displays.
Transit Displays
Our transit displays are advertising surfaces on various types of vehicles or within transit systems, including on the interior
and exterior sides of buses, trains, trams, and within the common areas of rail stations and airports, and are available in both
traditional and digital formats. Similar to street furniture, contracts for the right to place our displays on such vehicles or within such
transit systems and to sell advertising space on them generally are awarded by public transit authorities in competitive bidding
processes or are negotiated with private transit operators. Generally, these contracts have terms ranging up to nine years. Our client
contracts for transit displays generally have terms ranging from four weeks to one year.
Other Inventory
The balance of our display inventory consists of spectaculars, wallscapes and mall displays. Spectaculars are customized
display structures that often incorporate video, multidimensional lettering and figures, mechanical devices and moving parts and other
embellishments to create special effects. The majority of our spectaculars are located in Times Square in New York City, Dundas
Square and the Gardiner Expressway in Toronto, Fashion Show Mall in Las Vegas, Miracle Mile Shops in Las Vegas and across from
the Target Center in Minneapolis. Client contracts for spectaculars typically have terms of one year or longer. A wallscape is a
display that drapes over or is suspended from the sides of buildings or other structures. Generally, wallscapes are located in high-
profile areas where other types of outdoor advertising displays are limited or unavailable. Clients typically contract for individual
wallscapes for extended terms. We also own displays located within the common areas of malls on which our clients run advertising
campaigns for periods ranging from four weeks to one year.
A
dvertising Inventory and Markets
As of December 31, 2011, we owned or operated approximately 125,000 display structures in our Americas outdoor
advertising segment with operations in 48 of the 50 largest markets in the United States, including all of the 20 largest markets.
Therefore, no one property is material to our overall operations. We believe that our properties are in good condition and suitable for
our operations. During 2011, we conformed our methodology for counting airport displays to be consistent with the remainder of our
domestic inventory.
Our displays are located on owned land, leased land or land for which we have acquired permanent easements. The
majority of the advertising structures on which our displays are mounted require permits. Permits are granted for the right to operate
an advertising structure as long the structure is used in compliance with the laws and regulations of the applicable jurisdiction.
Competition
The outdoor advertising industry in the Americas is fragmented, consisting of several larger companies involved in outdoor
advertising, such as CBS and Lamar Advertising Company, as well as numerous smaller and local companies operating a limited
number of displays in a single market or a few local markets. We also compete with other advertising media in our respective
markets, including broadcast and cable television, radio, print media, direct mail, the Internet and other forms of advertisement.
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