iHeartMedia 2012 Annual Report Download - page 5

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We focus on building the leadership position of our diverse global assets and maximizing our financial performance while
serving our local communities. We continue to invest strategically in our digital platforms, including the development of continued
enhancements to iHeartRadio, our integrated digital radio platform, and the ongoing deployment of digital outdoor displays. We
intend to continue to execute our strategies while closely managing expenses and focusing on achieving operating efficiencies across
our businesses. We share best practices across our businesses and markets to replicate our successes throughout the markets in which
we operate.
For more information about our revenue, gross profit and assets by segment and our revenue and long-lived assets by geographic
area, see Note 13 to our Consolidated Financial Statements located in Item 8 of Part II of this Annual Report on Form 10-K.
CCME
Our CCME operations include radio broadcasting, online and mobile services and products, program syndication,
entertainment, traffic data distribution and music research services. Our radio stations and content can be heard on AM/FM stations,
HD radio stations, satellite radio, at iHeartRadio.com and our radio stations’ websites, through our iHeartRadio mobile application on
tablets and smart phones, and via navigation systems.
As of December 31, 2012, we owned 840 domestic radio stations servicing approximately 150 U.S. markets, including 44 of
the top 50 markets and 85 of the top 100 markets. CCME includes radio stations for which we are the licensee and one station for
which we provide programming and sell air time under a local marketing agreement (“LMA”). We are also the beneficiary of Aloha
Station Trust, LLC, which owns and operates 20 radio stations which we were required to divest in order to comply with FCC media
ownership rules, and which are being marketed for sale. Our portfolio of stations offers a broad assortment of programming formats,
including adult contemporary, country, contemporary hit radio, rock, news/talk, sports, urban, oldies and others.
In addition to our local radio programming, we also operate Premiere Networks (“Premiere”), a national radio network that
produces, distributes or represents approximately 90 syndicated radio programs and serves more than 5,000 radio station affiliates.
We also deliver real-time traffic information via navigation systems, radio and television broadcast media and wireless and Internet-
based services through our traffic business, Total Traffic Network.
Strategy
Our CCME strategy centers on delivering entertaining and informative content across multiple platforms, including
broadcast, mobile and digital. We strive to serve our listeners by providing the content they desire on the platform they prefer, while
supporting advertisers, strategic partners, music labels and artists with a diverse platform of creative marketing opportunities designed
to effectively reach and engage target audiences. Our CCME strategy also focuses on continuing to improve the operations of our
stations by providing valuable programming and promotions, as well as sharing best practices across our stations in marketing,
distribution, sales and cost management.
Promote Local and National Advertising. We intend to grow our CCME businesses by continuing to develop effective
programming, creating new solutions for our advertisers and agencies, fostering key relationships with advertisers and improving our
national sales team. We intend to leverage our diverse collection of assets combined with our programming and creative strengths and
our consumer relationships, to create special events such as one-of-a-kind local and national promotions for our listeners, and develop
new, innovative technologies and products with which we can promote our advertisers. We seek to maximize revenue by closely
managing our advertising opportunities and pricing to compete effectively in local markets. We operate price and yield 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.
Continue to Enhance the Listener Experience. We intend to continue enhancing the listener experience by offering a wide
variety of compelling content and methods of delivery. We will continue to provide the content our listeners desire on their preferred
platforms. Our investments have created a collection of leading on-air talent. For example, Premiere offers more than 90 syndicated
radio programs and services for more than 5,000 radio station affiliates across the United States, including popular programs such as
Rush Limbaugh, Sean Hannity, Glenn Beck, Ryan Seacrest, Steve Harvey, Elvis Duran and Delilah. Our distribution capabilities
allow us to attract top talent and more effectively utilize programming, sharing our best and most compelling content across many
stations.
Deliver Content via Multiple Distribution Technologies. We continue to expand the choices for our listeners. We deliver
music, news, talk, sports, traffic and other content using an array of distribution technologies, including broadcast radio and HD radio