Clear Channel Communications

Posted on April 8, 2013 by Sarah Arlotto

by Sarah Arlotto

Clear Channel Communications’ logo- courtesy of clearchannel.com

Company Information

http://www.clearchannel.com

Address: 200 East Basse Road, San Antonio, Texas, 78209

Telephone: (210) 822-2828

A Brief History and Overview

Clear Channel Communications, Inc. was founded in 1972 with the purchase of its first FM radio station in San Antonio, Texas. After expanding throughout Texas, and then globally, Clear Channel has become one of the world’s largest media and entertainment companies. Besides Clear Channel’s Media & Entertainment sector, it also has an outdoor advertising division called Clear Channel Outdoor. Clear Channel Outdoor has over one million displays in over 30 countries. Clear Channel aims to be America’s only radio company that offers local presence with national reach and to develop innovative and dynamic campaigns for advertisers.[1]

Clear Channel Media and Entertainment

With 850 radio stations broadcast to over 150 markets, Clear Channel reaches over 243 million listeners every month and has a greater reach than any other radio or television outlet in the United States. They deliver a variety of content including music, news, talk, sports, and comedy, on a number of platforms such as AM/FM stations, in-vehicle satellite radio, HD radio, and online radio. Clear Channel also offers a digital music service called iHeartRadio. It is free and can be accessed through online internet streaming and through a mobile app. iHeartRadio gives listeners access to over 1,500 live radio stations and the opportunity to create customized stations based on their artist and song and genre preferences. Clear Channel also offers live music events such as their annual iHeartRadio Music Festival.[1]

What Is iHeartRadio? [13]

Key Executives

Bob Pittman [2]

Bob Pittman is Clear Channel Communications’ Chief Executive Officer.[2]

Tom Casey [2]

Tom Casey is Chief Financial Officer and Executive Vice President of Clear Channel Communications.[2]

Wendy Goldberg [2]

Wendy Goldberg serves as Chief Communications Officer and Senior Vice President for Clear Channel Communications. She oversees and executes strategic communications for all of the Clear Channel Brands.[2]

Robert H. Walls, Jr. [2]

Robert H. Walls, Jr. is General Counsel and Executive Vice President of Clear Channel Communications. He oversees the legal and government affairs departments within the company.[2]

John Hogan [2]

John Hogan is the Chairman and Chief Executive Officer of Clear Channel’s Media and Entertainment Division. He oversees the development and organization of Clear Channel’s radio stations.[2]

John Skyes [2]

John Skyes is the President of Entertainment Enterprises for Clear Channel. He helps to develop new business for Clear Channel Communications. He is also on the board of many organizations including Syracuse University’s Newhouse School of Public Communications.[2]

Financials

Clear Channel Communications is a privately traded company. Shares of their parent company, CC Media Holdings, Inc. are traded under the ticker symbol CCMO. Clear Channel Outdoor Holdings, Inc. is traded separately under the ticket symbol CCO.[3]

CCMO’s revenues have been increasing slowly since December 31, 2009. The recorded revenues for December 31, 2012 were $6,246.9 million. Operating expenses have also been on a steady increase. Since December 31, 2009 CCMO has also been experiencing a net loss of income every year. The net income recorded for December 31, 2012 was $424.5 million. This loss of income can be explained by rising operating expenses and only a very small increase in revenues.[4]

In the News

January: On January 7^thClear Channel Media and Entertainment updated their iHeartRadio app. They added a “Perfect For” feature that will allow users to choose a playlist based on their current mood or activity. They have also added an alarm clock and a sleep timer feature to the application, making it so iHeartRadio can be the first thing that listeners hear when they wake up in the morning and the last thing they hear before they fall asleep at night.[5]

Clear Channel’s iHeartRadio app “Perfect For” feature [15]

Clear Channel also announced that iHeartRadio will be made compatible in Chrysler Group and General Motors Company vehicles. The new made-for-driving application will be called “iHeartAuto” and will make it easier and safer for users to listen to their favorite radio stations and artists straight from their car.[6]

February: On February 11^th Clear Channel Media and Entertainment released their findings from recent research study that concluded that by reallocating a small amount of money to radio advertising can help companies increase their brand’s reach. These findings are explained by the notion that radio reaches an audience that is more receptive and open to marketing ideas and suggestions.[7] On February 13^th Clear Channel announced that they have a new partnership with Robbins Entertainment, a music label. As part of the deal, Clear Channel will be sharing all of its radio revenues as well as its digital broadcast revenues with the artists under the Robbins Entertainment label. Clear Channel has closed similar deals over the past few months with other record labels.[8]

March: On March 11^th Clear Channel unveiled an “Add-Ins” feature to their iHeartRadio app. This feature will allow listeners to insert local news, weather, and traffic to their custom stations. This innovation will allow Clear Channel to grow as a national radio provider while still localizing and personalizing their services.[9] On March 15^th Clear Channel announced their partnership with Target to promote Justin Timberlake’s new album: “The 20/20 Experience.” Together, Target and Clear Channel will host an iHeartRadio album release party on March 18^th. 120 lucky winners will be flown to Los Angeles for the event.[10]

“The 20/20 Experience” album release party [16]

On March 28^th Clear Channel announced that their annual iHeartRadio Music Festival will be held at the MGM Grand in Vegas for its third year. Part of the festival includes the Macy’s iHeartRadio “Rising Star Campaign” where 25 new artists compete for a spot in the festival alongside big names in the industry. Clear Channel also puts on a “Road to Vegas” campaign to promote the event, where hundreds of listeners will be awards trips to the concert. The event will take place September 21 and 22, 2013.[11]

Voting page for Macy’s Rising Star Campaign [13]

April: On April 1^st Clear Channel Media and Entertainment announced a partnership with Big Machine Label Group. Together the two companies will release The Band Perry’s second album, called PIONEER. The idea of the campaign is to increase audience awareness through an on-air Artist Integration Program to introduce the new album to listeners. The campaign will also include on-air interviews with the artists and a live performance.[12]

The Band Perry [17]

References

[1] http://www.clearchannel.com/Corporate/Pages/about.aspx

[2] http://www.clearchannel.com/Corporate/Pages/our-team.aspx

[3] http://www.clearchannel.com/Investors/Pages/faq.aspx

[4] http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=CCMO

[5] http://www.clearchannel.com/Pages/IHeartRadio-Unveils-New-“Perfect-For”-Feature—Now-Users-Can-Listen-To-Stations-Based-On-Their-Moods-And-Activities.aspx

[6] http://www.clearchannel.com/Pages/iHeartRadio-Expands-Its-Reach-Across-The-Automotive-Industry-With-Integrations-in-Chrysler-Group-and-General-Motors-Vehicle.aspx

[7] http://www.clearchannel.com/Pages/Research-Shows-That-Mix-Of-Radio-And-Tv-Gives-Advertisers-Bigger-Bang-For-Their-Buck.aspx

[8] http://thenextweb.com/media/2013/02/13/clear-channel-will-share-digital-radio-revenues-with-robbins-entertainments-music-artists/

[9] http://finance.yahoo.com/news/iheartradio-introduces-local-news-traffic-130000770.html

[10] http://www.webwire.com/ViewPressRel.asp?aId=171678

[11] http://www.billboard.com/biz/articles/news/branding/1554919/clear-channels-iheartradio-music-festival-announces-return-to

[12] http://www.clearchannel.com/Pages/Clear-Channel-Media-and-Entertainment-and-Big-Machine-Label-Group-to-Launch-Artist-Integration-Program-Around-The-Band-Perr.aspx

[13] http://macys.iheart.com/macys/

[14] http://www.youtube.com/watch?v=ZhQSr2SugXA

[15] http://www.allaccess.com/net-news/archive/story/113908/iheartradio-unveils-perfect-for-feature-based-on-l

[16] https://www.facebook.com/iheartradio

[17] http://www.countrymusicislove.com/category/the-band-perry

Clear Channel

Posted on December 7, 2012 by hjparker

by [Holly Parker]

http://www.clearchannel.com/

Address: 200 East Basse Road, San Antonio, TX 78209

Telephone: (210) 822-2828

Overview

Clear Channel Communications is a private communications company, founded in 1972 and based out of San Antonio, Texas. It is privately owned by Bain Capital and Thomas H. Lee Partners. Clear Channel is most well known for its radio station ownership but the company also owns outdoor advertising around the country. The two main divisions of the company are Clear Channel Media & Entertainment and Clear Channel Outdoor. [1]

Clear Channel Media & Entertainment

Clear Channel Media & Entertainment (CCME) is the radio division of Clear Channel and serves 150 cities through 850 radio stations. Its stations are broadcast on a wide variety of platforms including AM/FM stations, satellite radio, HD radio, and iHeartRadio which streams music on mobile phones and the Internet. CCME has divisons including “radio broadcasting, online and mobile services and products, syndication, music research services and independent media representation.” [2]

Clear Channel Media Statistics [2]

With 239 million monthly listeners in the U.S., Clear Channel Media and Entertainment has the largest reach of any radio or television outlet in America.
100 million listening hours a month
Over 45 million monthly digital uniques
15 million+ fan reach through station and radio personality Facebook pages

Robert Pittman, CEO of Clear Channel

Key Executives [3]

Robert Pittman, Chief Executive Officer: Mr. Pittman is a giant in the world of media communications. He is the founder of MTV and became CEO of Clear Channel Communications in October 2011. He has helped increase the company’s digital presence and stated that he wants to make Clear Channel’s stations free on as many platforms as possible. [4]
Tom Casey, Chief Financial Officer and Executive Vice President
Robert H. Walls, Jr., Executive Vice President and General Counsel
John Hogan, Chairman and CEO, Clear Channel Media and Entertainment

Financials [5]

In the third quarter of 2012, Clear Channel Media and Entertainment (CCME) was up 1%, or $7 million, in revenues compared to the third quarter of 2011. This increase was primarily the result of a 3% increase in radio revenues, due to an increase in national advertising, digital radio services, and the iHeart Radio Music Festival in September.
At the end of the third quarter, CCME had a revenue of $798.8 million, and Clear Channel Communications increased its overall revenue by 2% up to $1.59 billion.
However, the company may have some financial troubles in the coming years. It needs to refinance more than $10 billion in debt, due in 2016. Its debt by this year will likely outnumber its asset value. This debt has caused some to speculate that the company may have to merge or sell off some of its assets. [6]

iHeartRadio

iHeartRadio is a company owned by Clear Channel consisting of a mobile application and an Internet radio website. Its website states that iHeartRadio is a “free, all-in-one digital radio service that lets you find more than 1,500 Live Stations or create commercial-free, all-music Custom Stations featuring songs from the artist you select and similar music” [7]. The company has proved quite successful for Clear Channel and has helped keep radio in the 21st century. It allows users to stream from a wide variety of radio stations around the country. The company has evolved to become more versatile than just streaming radio stations over the Internet; it now has customizable stations similar to Pandora.

In November, iHeartRadio announced that they had reached 20 million users and surpassed 135 million app downloads [8].

iHeartRadio’s website homepage

iHeartRadio Music Festival 2012

The 2nd annual iHeartRadio Music Festival was held this year on September 21 and 22 in Las Vegas, and featured popular musical acts such as Rihanna, Lil Wayne, Taylor Swift, No Doubt, and Aerosmith. The festival was also broadcast on The CW on October 1. The first iHeartRadio Music Festival took place last year and kicked off the official launch of iHeartRadio. Of the festival, CEO Robert Pittman said: “The iHeartRadio Music Festival is an indication of Clear Channel’s ongoing commitment to music and artist development — maximizing artists’ exposure to fans and audiences nationwide.” [1]

Katz Media Group

Katz Media Group is a subsidiary of Clear Channel Communications and a leading media representation company in the United States. Katz’s website explains: “With more than 4,000 radio stations and 500 television stations retaining our services, we are the only media representation company to serve a variety of over-the-air and digital platforms.” [9] Katz recently announced that it set a digital sales record for its Digital Display Network and Online Audio Network, reaching more than 100 million and 66.5 million unique monthly users respectively. [10]

Other Clear Channel Media & Entertainment News

September 27, 2012: Clear Channel made an agreement with Glassnote Entertainment Group, that will “align the companies’ business interests, accelerate growth and innovation in digital radio and enable Glassnote and its artists to share in all Clear Channel radio revenue streams.” [11] The agreement comes in hopes of accelerating the digital music industry. Glassnote, an independent record and publishing company, represents such artists as Mumford & Sons, Childish Gambino, Phoenix, and The Temper Trap. These artists and others represented by the music company will benefit from this deal with Clear Channel.

October 12, 2012: The Australian Radio Network (ARN) announced that they would launch iHeartRadio in Australia and New Zealand, providing a lucrative opportunity for Clear Channel Media & Entertainment to expand their company internationally. The service will launch in Australia and New Zealand in 2013 and will be marketed through Clear Channel International’s media assets. [12]

November 8, 2012: Clear Channel Media & Entertainment announced, in partnership with The Madison Square Garden Company and The Weinstein Company, plans for a concert called 12-12-12, A Concert For Sandy Relief. The one night only concert will raise money for people in the tri-state area (New York, New Jersey, and Connecticut) affected by Hurricane Sandy and will take place on December 12, 2012 in Madison Square Garden. All money raised will be administered to the Robin Hood Relief Fund. John Sykes, President of Clear Channel Entertainment Enterprises, will help produce the event. The lineup for the concert includes huge name musical acts such as Paul McCartney, Eric Clapton, Bon Jovi, The Who, Billy Joel, Bruce Springsteen & The E Street Band, Alicia Keys, and Kanye West. [13]

November 20, 2012: Clear Channel will sponsor a series of annual holiday concerts across the country called Jingle Ball 2012. Each year Clear Channel stations across the country host Jingle Ball concerts in local cities, featuring performances by top recording artists and emerging new talent. Washington, DC’s Hot 99.5 and Atlanta’s Power 96.1 are hosting Jingle Ball for the first time this year. Concerts will also take place in Detroit, Los Angeles, Minneapolis, Philadelphia, Boston, New York, Miami, Tampa, San Francisco, and Seattle. [14]

December 3, 2012: Triton released its Online Audio Rankings for October 2012, declaring Clear Channel #2 in ratings behind Pandora. The report lists Clear Channel as having 281,782 Average Active Sessions (AAS). AAS is defined as Total Hours Listening (total number of hours the station/publisher has streamed) divided by hours in the reported time period. Clear Channel is also listed as having 0.61 average hours listening. Above Clear Channel, Pandora has 1,561,757 Average Active Sessions and 0.64 average hours listening. [15]

December 6, 2012: Clear Channel made a number of layoffs in large and mid-sized markets. It is unclear how many layoffs were made, but the company said in a statement that “this creates some new jobs, and unfortunately eliminates others.” The company is continuing to evolve its organizational structure. [16]

References:

1. http://www.clearchannel.com/

2. http://www.clearchannel.com/MediaAndEntertainment/

3. http://www.clearchannel.com/Corporate/PressRelease.aspx?PressReleaseID=1168&p=hidden

4. http://www.tritondigital.com/news-items/pittman-envisions-new-life-for-radio

5. http://www.ccmediaholdings.com/documents/Quarterly/CC-Media-Holdings-Q3-2012-Earnings-Release.pdf

6. http://www.bizjournals.com/sanantonio/blog/2012/12/clear-channel-facing-cloudy-financial.html

7. http://www.iheart.com/about/

8. http://www.slashgear.com/iheartradio-surpasses-20-million-users-sees-over-135-million-downloads-20257809/

9. http://www.katz-media.com/default.aspx

10. http://www.katz-media.com/newsroom/Lists/Newsroom/DispForm.aspx?ID=127&ContentTypeId=0x0104001CC469D696FE464A8A8D4A5554FA03A2

11. http://www.clearchannel.com/MediaAndEntertainment/PressRelease.aspx?PressReleaseID=3148