iHeartMedia 2014 Annual Report Download - page 20

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Regulations and consumer concerns regarding privacy and data protection, or any failure to comply with these regulations, could
hinder our operations
We collect and utilize demographic and other information, including personally identifiable information, from and about our
listeners, consumers, business partners and advertisers as they interact with us. For example: (1) our broadcast radio station websites
and our iHeartRadio digital platform collect personal information as users register for our services, fill out their listener profiles, post
comments, use our social networking features, participate in polls and contests and sign-up to receive email newsletters; (2) we use
tracking technologies, such as “cookies,” to manage and track our listeners’ interactions with us so that we can deliver relevant music
content and advertising; and (3) we collect credit card or debit card information from consumers, business partners and advertisers
who use our services.
We are subject to numerous federal, state and foreign laws and regulations relating to consumer protection, information
security, data protection and privacy, among other things. Many of these laws are still evolving, new laws may be enacted and any of
these laws could be amended or interpreted in ways that could harm our business. In addition, changes in consumer expectations and
demands regarding privacy and data protection could restrict our ability to collect, use, disclose and derive economic value from
demographic and other information related to our listeners, consumers, business partners and advertisers. Such restrictions could limit
our ability to provide customized music content to our listeners, interact directly with our listeners and consumers and offer targeted
advertising opportunities to our business partners and advertisers. Although we have implemented policies and procedures designed
to comply with these laws and regulations, any failure or perceived failure by us to comply with our policies or applicable regulatory
requirements related to consumer protection, information security, data protection and privacy could result in a loss of confidence in
us, damage to our brands, the loss of listeners, consumers, business partners and advertisers, as well as proceedings against us by
governmental authorities or others, which could hinder our operations and adversely affect our business.
If our security measures are breached, we could lose valuable information, suffer disruptions to our business, and incur expenses
and liabilities including damages to our relationships with listeners, business partners and advertisers
Although we have implemented physical and electronic security measures to protect against the loss, misuse and alteration of
our websites, digital assets and proprietary business information as well as listener, consumer, business partner and advertiser
personally identifiable information, no security measures are perfect and impenetrable and we may be unable to anticipate or prevent
unauthorized access. A security breach could occur due to the actions of outside parties, employee error, malfeasance or a
combination of these or other actions. If an actual or perceived breach of our security occurs, we could lose competitively sensitive
business information or suffer disruptions to our business operations, information processes or internal controls. In addition, the
public perception of the effectiveness of our security measures or services could be harmed, we could lose listeners, consumers,
business partners and advertisers. In the event of a security breach, we could suffer financial exposure in connection with remediation
efforts, investigations and legal proceedings and changes in our security and system protection measures.
Government regulation of outdoor advertising may restrict our outdoor advertising operations
U.S. federal, state and local regulations have a significant impact on the outdoor advertising industry and our business. One
of the seminal laws is the HBA, which regulates outdoor advertising on controlled roads in the United States. The HBA regulates the
size and location of billboards, mandates a state compliance program, requires the development of state standards, promotes the
expeditious removal of illegal signs and requires just compensation for takings. Construction, repair, maintenance, lighting, upgrading,
height, size, spacing, the location and permitting of billboards and the use of new technologies for changing displays, such as digital
displays, are regulated by federal, state and local governments. From time to time, states and municipalities have prohibited or
significantly limited the construction of new outdoor advertising structures. Changes in laws and regulations affecting outdoor
advertising, or changes in the interpretation of those laws and regulations, at any level of government, including the foreign
jurisdictions in which we operate, could have a significant financial impact on us by requiring us to make significant expenditures or
otherwise limiting or restricting some of our operations. Due to such regulations, it has become increasingly difficult to develop new
outdoor advertising locations.
From time to time, certain state and local governments and third parties have attempted to force the removal of our displays
under various state and local laws, including zoning ordinances, permit enforcement, condemnation and amortization. Similar risks
also arise in certain of our international jurisdictions. Amortization is the attempted forced removal of legal non-conforming
billboards (billboards which conformed with applicable laws and regulations when built, but which do not conform to current laws and
regulations) or the commercial advertising placed on such billboards after a period of years. Pursuant to this concept, the
governmental body asserts that just compensation is earned by continued operation of the billboard over time. Although amortization
is prohibited along all controlled roads and generally prohibited along non-controlled roads, amortization has been upheld along non-
controlled roads in limited instances where provided by state and local law. Other regulations limit our ability to rebuild, replace,
repair, maintain and upgrade non-conforming displays. In addition, from time to time third parties or local governments assert that we
own or operate displays that either are not properly permitted or otherwise are not in strict compliance with applicable law. If we are