iHeart Media & Entertainment

Posted on October 16, 2016 by trlevy

by TALIA LEVY and VALERIE POWELL

[16] iHeartMedia Company Logo

iHeartMedia, Inc

200 East Base Road

San Antonio, Texas

HISTORY

iHeart Media was originally founded in San Antonio, Texas under the name Clear Channel Communications. The company was founded by Lowry Mays and B.J. McCombs in 1972. In 2008, the company became private by a leveraged buyout through Bain Capital, LLC and Thomas H. Lee Partners.

iHeartMedia has the widest reach in America for any radio or television outlet with an audience of over a quarter of a billion listeners each month. The company currently covers 150 of the U.S. markets with 858 broadcast radio stations. iHeartMedia delivers a variety of content including music, talk shows, news, and sports through broadcast stations, satellite, online, via smartphones and via live shows. iHeartRadio currently has 92 million registered users with a year-over-year growth of 22% with an increase of 8% in total listening hours. As of September 30th, cumulative upgrades and downloads have reached a new record of 1.1 billion [4].

KEY EXECUTIVES

Bob Pittman [12] Chairman and Chief Executive Officer

Wendy Goldberg [13] Executive Vice President and Chief Communications Officer

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William Eccleshare [15] Chairman and CEO, Clear Channel International

Richard J. Dressler [14] President, Chief Operating Officer and Chief Financial Officer

FINIANCIAL

For the second quarter of 2016, iHeartMedia’s loss widened to $278.89 million due to billboard sales in Turkey that expanded the ongoing debt $56.6 million. The loss was more than five times the amount of 2015’s second quarter loss of $54.66 million [3]. Even though there was a large loss in the second quarter, the company is still generating revenue in the third quarter of 2016 for a total of $857.1 million. Due to a growth in network business and the Presidential Election, digital advertising and broadcast radio primarily drove the growth in revenue of $10.2 million (1.2%) from the previous year’s third quarter revenue [4].

The increase in revenue allows iHeart to stay on top of their current debt of $20.78 billion as of June 30th, 2016. The large debt is mainly due to a buyout in 2008 by two Boston private-equity firms, allowing them to gain 70% of the iHeartMedia Company. Debtwire senior credit analyst, Seth Crystall, explains that iHeart is a “powerful brand” and will continue to increase revenue to make up from their current losses by the transformation of their listeners to their mobile app [3].

[17] Singer Taylor Swift singing at the iHeartRadio Music Awards.

iHEART MUSIC FESTIVALS

The iHeart Music Festival Tour is iHeartRadio’s biggest live musical event, generating a large income for the company, with a portion of the ticket profits going towards the Ryan Seacrest Foundation. iHeartMedia’s President of National Programming Group, Tom Poleman, says, “Fans wait all year to hear who will be playing this tour and we’re thrilled to announce an impressive lineup” [11]. The concerts are held in major cities throughout the country by the iHeartRadio stations in those areas. The Jingle Ball Tour is iHeartRadio’s biggest musical event, generating a large income for the company. The tour is sponsored by Capital One, which allows card holders to gain early access to tickets before going to the general public [7].

[18] Bon Jovi Photographed performing at an iHeartRadio live concert.

The live iHeart Radio concerts are a mutually beneficially event for both the artists involved and iHeartMedia. For example, most recently the artist The Weekend celebrated the release of his new album Starboy in Toronto by headlining the iHeartRadio Canada Jingle Ball. Thirty minutes of his live set was broadcasted on the iHeartRadio App, along with 112 of iHeart Media’s radio stations including KISS in Los Angeles and Z100 in New York [1]. The iHeartRadio Jingle Ball in Toronto also included performances by major artists such as Niall Horan, The Chainsmokers, and Alessia Cara.

[23] iHeartRadio celebrated One Direction’s 2013 album Midnight Memories with a special release party.

iHEART GLOBALLY

Recently, iHeartRadio expanded into Canada with the collaboration of North America’s fastest growing digital audio service, Bell Media [2]. Canadians now have instant access to stations and to free streaming channels via iOS, Android apps, and at iHeartRadio.ca. iHeartRadio Canada uses content from Bell Media, which has over 105 licensed radio stations and 100 streaming channels [2]. With the expansion into Canada, iHeartRadio’s Jingle Ball will now be present in Toronto.

[21] iHeartMedia’s Fiesta Latina is a part of the company’s Hispanic initiative.

This part quarter iHeart partnered with Hispanic radio legend Enrique Santos, to create a new Hispanic initiative to develop new programming content for iHeartMedia across their various platforms. This new initiative recognizes the increasing size of the the U.S. Hispanic community that are both English and Spanish speakers, as well as utilizes Santos’ popular reputation within the Latino community [8].

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[22] iHeart partnered with Telemundo to air the program.

Building off of this new initiative, just this past November iHeart celebrated the best in Latin Music at the iHeartRadio Fiesta Latina. They partnered with Telemundo to air the exclusive TV special and streamed the event live on Telemundo.com. Telemundo is an American-Spanish language television network owned by Comcast through NBCUniversal [10]. The event broadcasted live on iHeartMedia Spanish-Pop, Tropical, regional Mexican and Spanish Adult Hit radio stations all across the country [8].

THE FUTURE

This coming January, iHeartMedia will be launching a new On-Demand music streaming service, that will put them amongst competition of services like Spotify and Apple Music. The iHeartRadio All Access service will offer its subscribers unlimited on-demand listing to over 30 million songs. They will also offer a cheaper option, iHeartRadio Plus, which will gives its subscribers the ability to instantly replay songs they heard on iHeartRadio stations, through the app. According to iHeartRadio,the company has not yet decided how to price the two new services. However, $9.99 a month has become an industry standard for full on-demand subscriptions services. iHeartMedia earns most of its revenue through on-air advertisements, which they still will continue to air, despite the new revenue from the subscription service.

[19] iHeart will be unveiling 2 different On-Demand services. iHeartRadio Plus and iHeartRadio All Access.

iHeartMedia is not the only major radio based company making the switch, Pandora is creating its own on-demand based product estimated to cost $4.99 a month in the near future [6]. According to iHeart, iHeart All Access will “include a full on demand music collection experience – but one still tied directly to radio.” the company said. When listeners hear a song on the radio that they like, for the first time ever they will be able to replay that song or even save it directly to their playlist.

[20] iHeart Radio’s On-Demand service is expected to launch in January 2017.

Sources:

[1] Bliss, Karen. “The Weeknd’s Album Release Day Live Set Broadcast on IHeartRadio.”Billboard. Billboard Music, 26 Nov. 2016. Web. 27 Nov. 2016.

[2] Dupuis, Renee. “IHeartRadio Now Available in Canada: Free Streaming Service Brings Canadians Biggest and Best Music Experience.” Bell Media. Bell Media Canada, 6 Oct. 2016. Web. 29 Nov. 2016.

[3] Hendricks, David. “IHeartMedia’s Second-quarter Loss Widens to $278.9 Million.” San Antonio Express-News. San Antonio Express-News, 4 Aug. 2016. Web. 29 Nov. 2016.

[4] IHeartMedia, Inc. IHEARTMEDIA, INC. REPORTS RESULTS FOR THIRD QUARTER 2016. Rep. IHeartMedia, INC., 9 Nov. 2016. Web.

[5] Karp, Hannah. “IHeartMedia to Launch On-Demand Music Service.” The Wall Street Journal. Dow Jones & Company, 23 Sept. 2016. Web. 15 Oct. 2016.

[6] Lovelace, Berkeley, Jr. “Pandora CEO on On-demand Services: We’re in the Perfect Position.” CNBC. CNBC, 14 Sept. 2016. Web. 29 Nov. 2016.

[7] McAlone, Nathan. “The Biggest Radio Powerhouse in the US Just Took Aim at Apple and Spotify with a New Service.” Business Insider. Business Insider, 23 Sept. 2016. Web. 29 Nov. 2016.

[8] Ross, Kevin. “IHeartMedia, Inc. Reports Financial Results for the Third Quarter Ended September 30, 2016.” Radio Facts. N.p., 10 Nov. 2016. Web. 29 Nov. 2016.

[9] Stine, Randy. “IHeartMedia Shows Revenue Growth in Q3.” Radio World. Radio World, 10 Nov. 2016. Web. 29 Nov. 2016.

[10] Telemundo. “IHeartRadio Fiesta Latina 2016.” Telemundo. N.p., n.d. Web. 29 Nov. 2016.

[11] Vitucci, Danielle. “IHeartMedia Rings in the Holiday Season with the Return of Its Iconic 2016 National “iHeartRadio Jingle Ball Tour Presented by Capital One”.” IHeartMedia Rings in the Holiday Season with the Return of Its Iconic 2016 National “iHeartRadio Jingle Ball Tour Presented by Capital One” | Business Wire. BusinessWire, 11 Oct. 2016. Web. 29 Nov. 2016.

[12] Bob Pittman. iHeartMedia, Inc. Retrieved: November 28th 2016

[13] Wendy Goldberg. iHeartMedia, Inc. Retrieved: November 28th 2016

[14] Richard J. Dressler. iHeartMedia, Inc. Retrieved: November 28th 2016

[15] William Eccleshare. iHeartMedia, Inc. Retrieved: November 28th 2016

[16] iHeartMedia. RadioFacts. Retrieved: November 28th 2016

[17] iHeartMedia. Yahoo News. Retrieved: November 28th 2016

[18] iHeartMedia. VectorNetworks. Retrieved: November 28th 2016

[19] iHeartMedia. Hollywood.com. Retrieved: November 28th 2016

[20] iHeartMedia. Business Wire. Retrieved: November 28th 2016

[21] iHeartMedia. Aaarena.com. Retrieved: November 28th 2016

[22] iHeartMedia. iHeart.com. Retrieved: November 28th 2016

[23] One Direction Last First Kiss IHeartRadio Album Release Party. Perf. One Direction. Youtube, 3 Jan. 2014. Web. 20 Nov. 2016.

iHeartMedia

Posted on February 18, 2016 by Clelia Ryan

iHeartMedia Logo -Source iheartmedia.com

Headquarters

iHeartMedia, Inc.
200 East Basse Road
San Antonio, Texas 78209-8328

Corporate Structure

Bob Pitman: Chairman and CEO [3]

Richard J. Bressler: President, CFO and COO [3]

Wendy Goldberg: Executive VP & Chief Communications Officer [3]

John Sykes: President of Entertainment Enterprises [3]

About

[source – Electro Area Youtube Channel]

iHeartMedia has become a major force in the mass media industry. It was founded under Clear Channel Communications when they purchased their first radio station in 1972. Today, iHeartMedia Inc. is the parent company of iHeartMedia Capital I, Clear Channel Outdoor Holdings (CCO) as well as iHeartMedia (IHRT) [14].

iHeartMedia has the largest impact of any media platform in America, reaching 245 million monthly listeners through radio. Their reach expands to 150 different markets and ownership of 850 stations. iHeartRadio is a digital platform to listen to all iHeartMedia stations [1]. The company proves to be very successful in the digital radio space. In 2014, Clear Channel Media formally changed its name to iHeartMedia. CEO Bob Pittman states, “The new name will reflect the company’s multi-platform presence and ability to embrace innovation and new technology” [9]. This name change allows the company to align itself with the iHeartRadio name that consumers are familiar with. iHeartRadio is responsible for many live music events throughout the year, such as the Jingle Ball national tour, iHeartRadio Music Festival and iHeartRadio Awards.

Radio

Radio is a still huge media outlet and continues to reach 91% of Americans ages 12+ each week [23]. As of January 2016, iHeartRadio has 80 million register users and total listening hours grew by 30% [18]. iHeartRadio has coined deals with some of the most well known on-air personalities such as Ryan Seacrest and Elvis Duran of New York’s Z100. Seacrest hosts of LA’s number one morning stations, 102.7 KISS-FM. He also hosts nationally syndicated programming with the broadcasts of On Air with Ryan Seacrest and American Top 40 with Ryan Seacrest [16].

Ryan Seacrest [16]

The iHeartRadio website and app provides “Live Radio“, allowing listeners to listen live to over 858 stations. They also provide “For You“, a feature that suggests stations based on the users preferred selection of genres. Finally, “Artist Radio” is a custom made station with songs by an artist selected by the listener and related music [17].

Right Here, Right Now: Financial Woes

Bloomberg’s Lucas Shaw Reports on iHeartMedia’s Debt [20]

Click here to view a Bloomberg video summarizing iHeartMedias debt crisis [20].

Recently, iHeartMedia has been making headlines for their massive debt reported at the end of 2015. The company is reported to have approximately $20.6 billion of debt [2]. In 2008 the company was bought by private equity firms Bain Capital Partners LLC and Thomas H. Lee Partners for $28 billion in a leveraged buyout. The buyout came during the economic recession and it was expected that in the coming years iHeartRadio would profit greatly [10]. However since 2008, iHeartMedia has been battling to pay off debt.

In response to the news, it was announced on March 8th that iHeartMedia Inc. hired Moelis & Co. as a financial advisor [4].

Also on March 8th, many bondholders became displeased with iHeartMedia’s executive decision to move $500 million in assets to a subsidiary. As a result bondholders filed notices of default. These bondholders argue that in transferring their shares of Clear Channel Outdoor Holdings Inc. to Broader Media LLC, iHeartMedia violated debt agreements. This was done in an attempt to clear up some of their massive debt [5].

In a press release issued on March 8th, iHeartMedia announced they filed a lawsuit in State District Court in Bear County Texas to prove their transfer of shares was done legally [6]. On behalf of the company, Chief Communications Officer Wendy Goldberg states, “We believe our recent contribution of Clear Channel Outdoor Holdings Inc. stock to our subsidiary Broader Media LLC constituted a permitted investment under, and fully complied with, our financing agreements” [5].

On March 10th, iHeartMedia was granted a temporary restraining order which rescinds the default noticed filed against the company. Moving forward, iHeartMedia and the bondholders, who issued the default notices, will have a court hearing before a judge. This hearing may determine how iHeartMedia will move froward in paying off their $20.6 billion in debt [11].

The trial regarding this matter is set to take place in a Texas state court on May 16, 2106. The shares in question are valued at $1.2 billion [12] .

Click for updating stock prices [19]

On April 25, 2016. iHeartMedia Inc.’s stock (IHRT) closed at $1.18 per share. This is a major drop in price compared to June 2015, when it was selling for $7.50 per share. Subsidiary, Clear Channel Outdoor Holdings also saw a drop in stock price from a year ago. It closed at $4.88 as opposed to its price of $11.21 seen in April 2015 [19]. In their Fourth Quarter and Full Year Report iHeartMedia stated a 3% revenue increase to $1.8 billion [18].

iHeartMedia’s Place in Political Advertising

Brendon DelToro [22]

On February 16th, iHeartMedia announced Brendon DelToro has been appointed to Vice President For Political Strategy. DelToro will aid in managing iHeartMedia’s relations with candidates and other political organizations. This year the company plans to have an iHeartMedia Campaign 2016 Command Center to keep track of over 2,000 elections in 150 markets. Brendon’s role will be to merge the political sales teams across iHeartMedia’s broad market reach [7]. The goal of iHeartMedia’s engagement with the political campaign is to allow political and advocacy groups to have access to iHeart’s 80 million users.

iHeartMedia is also planning on capitalizing on the 2016 election by having advertisers pay to place ads via radio rather than the traditional TV route. Candidates strive to target specific demographics, which is getting more difficult to do through traditional TV. Digital radio platforms, specially iHeartMedia can provide campaigns with data that is relevant for targeting the key audiences [8].

Continuing Their Place in the Entertainment Industry

Despite their well known debt and pending court hearings, iHeartMedia continues to hold their place in the music and entertainment industry.

iHeartMedia celebrated their 3rd annual iHeartRadio Music Awards on April 3rd. This award show is primarily driven by fans and users of the iHeartRadio app to vote for nominees.

iHeartRadio Music Awards Promotional Ad [13]

On social media the iHeartRadio Awards generated 115 billion impressions. This number includes the promotional period of the show throughout the television broadcast. This massive number of engagements far exceeds that of other popular award shows such as the MTV Video Music Awards. Chris Williams, Chief Product Officer credits the shows success to the fan engagement and radio personalities involvement [13].

Photo from the 2015 iHeartRadio Pool Party [15]

This summer, iHeartRadio will also be hosting their iHeartRadio Summer Pool Party. Tickets to this exclusive event at Miami’s Fontainebleau will be given to listeners across the country through on-air contests. This years lineup will feature Kygo, Flo Rida, DNCE and Jason Derulo [15]. Seasonal concert events such as the iHeartRadio Pool Party and Jingle Ball Tours are proven to boost listenership across iHeartRadio stations nationwide.

Summary

iHeartMedia is a well respected entertainment company but struggles with being profitable, due to its burdensome debt servicing obligations. Looking ahead, iHeartMedia’s debt crisis and battle with bondholders will have an effect on the financial future of the company. Overall, iHeartMedia remains competitive in the digital radio industry against companies such as Spotify and Pandora providing similar services.

Works Cited

[1] iHeartMedia Corporate. iheartmedia.com, Retrieved April 23, 2016

[2] “The Largest U.S. Radio Operator Is Saddled With $20 Billion Debt”. bloomberg.com, Retrieved April 23, 2016

[3] iHeartMedia Our Team. iheartmedia.com, Retrieved April 23, 2016

[4] “iHeartMedia hires Moelis to tackle debt burden”. newsdaily.com, Retrieved April 23, 2016

[5] “iHeartMedia, Lenders in Fight Over Disputed Share Transfer”. bloomberg.com, Retrieved April 23, 2016

[6] “iHeartMedia, Inc. Responds to Lender Group Allegation”. Businesswire.com, Retrieved April 23, 2016

[7] “iHeartMedia Names Brandon DelToro Vice President for Political Strategy”. iheartmedia.com, Retrieved April 23, 2016

[8] “Inside iHeartMedia Strategy to Steal Presidential Ad Dollars From TV” adage.com, Retrieved April 23, 2016

[9] “Clear Channel Rebrands As iHeartMedia” adage.com, Retrieved April 23, 2016

[10] “Coming, the collapse of radio’s iHeartMedia”. Medialifemagazine.com, Retrieved April 23, 2016

[11] “Court Rescinds Default Notices Against iHeartMedia”. Insideradio.com, Retrieved April 23, 2016

[12] “iHeartMedia Default Fight Set to Go to Trial” wsj.com, Retrieved April 23, 2016

[13] “2016 iHeartRadio Music Awards Social Engagement Captures 115 Billion Impressions Across U.S.” broadwayworld.com, Retrieved April 23, 2016

[14] “iHeartMedia Loses A Director, Gets More Time To Resolve Its Massive Debt Problems” billboard.com, Retrieved April 23, 2016

[15] “iHeartRadio Is Throwing Miami’s Biggest Pool Party of the Year With Flo-Rida, Kygo and More” miaminewtimes.com, Retrieved April 23, 2016

[16] “Ryan Seacrest Inks New Mega Deal with iHeartMedia” hollywoodreporter.com, retrieved April 23, 2016

[17] iHeartRadio. iheartradio.com, retrieved April 23, 2016

[18] iHeartMedia Investors. iheartmedia.com, Retrieved April 23, 2016

[19] iHRT Stock Price. Google.com/ihrt+stock+price, Retrieved April 23, 2016

[20] “Has iHeartMedia Defaulted on Debt?” uk.finance.yahoo.com, Retrieved April 23, 2016

[21] iHeartMedia Sizzle Reel. https://www.youtube.com/channel/UC6pQXJ0jHO8P9ih4rPRh8Kg, Retrieved April 24,2016

[22] Photo Brendon DelToro. allaccess.com, Retrieved April 24, 2016

[23] “Why Radio Fact Sheet”. rab.com, Retrieved April 24, 2016

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

12. http://www.clearchannel.com/MediaAndEntertainment/PressRelease.aspx?PressReleaseID=3138

13. http://www.clearchannel.com/MediaAndEntertainment/PressRelease.aspx?PressReleaseID=3152

14. http://www.clearchannel.com/MediaAndEntertainment/PressRelease.aspx?PressReleaseID=3157

15. http://www.tritondigital.com/media/default/rankers/oct-ranker-2012.pdf

16. http://www.insideradio.com/Article.asp?id=2588722&spid=32061#.UMETv5PjlKo

17. Logo image: http://typophile.com/files/Clear-Channel-logo%20edit_5618.jpg

18. Pittman image: http://rbr.com/wp-content/uploads/Bob_Pittman1.jpg

19. iHeartRadio image: http://www.iheart.com/

20. 12-12-12 image: http://www.121212concert.org/

Clear Channel Communications

Posted on September 18, 2012 by grsanson

by [Gabriel Sansone]

Clear Channel Communications Logo [1]

Who is Clear Channel?

Clear Channel Communications is a global entertainment and media company from San Antonio, Texas, that specializes in digital and radio platforms, as well as outdoor advertising. Clear Channel’s radio division, Clear Channel Media and Entertainment, reaches 239 million monthly listeners in the United States, giving it the largest reach of any television or radio outlet in the country.[2] Clear Channel Media and Entertainment has holdings in 150 cities and owns 850 radio stations,[3] which can be heard via AM/FM transmission, Sirius/XM satellite radio, HD digital radio, the Internet, mobile applications on smartphones and iPads, and navigation systems from Garmin and TomTom. Other properties of Clear Channel Media and Entertainment include Premiere Radio Networks, the number one radio network in the country with 90 radio programs in syndication, and Katz Media Group, the leading media representation company in the U.S., with over 500 television and 4,000 radio stations.[2] Clear Channel Media and Entertainment also owns iHeartRadio, a free digital radio service that allows users to listen to more than 1,500 Live Stations.[2] Clear Channel Media and Entertainment is run by Chairman and CEO John Hogan, who graduated from Lake Forest College in 1979.[4]

Clear Channel’s History

Clear Channel Communications was founded in 1972 by Lowry Mays and Red McCombs as the San Antonio Broadcasting Company, and by 1984 Clear Channel had six AM and six FM stations in seven different markets. Clear Channel first entered the television business in 1988, and by 1995 was in control of 43 radio stations and 16 television stations in 32 different markets. With the passage of the Telecommunications Act of 1996, the company acquired 49 new radio stations that covered 20 markets. In 1997, Clear Channel acquired Eller Media Company, helping it to become a leader in outdoor advertising. By 1999, Clear Channel was ranked by The Wall Street Journal as the fifth best-performing stock of the 1990s, and today, under the leadership of CEO Bob Pittman, Clear Channel continues to be one of the leaders in both the entertainment and advertising industries.[5]

What’s Clear Channel Doing Today?

September

On September 27^th, Clear Channel announced that it had struck a deal with Glassnote Entertainment Group to pay sound recording performance royalties to artists signed to the Glassnote record label, whether their songs are played via digital media or over the air.[6] The revolutionary deal, similar to one Clear Channel

Glassnote Entertainment Group Logo [8]

forged with the Big Machine Label Group in June, allows the label to receive a (undisclosed) percentage of Clear Channel’s digital and terrestrial advertising revenue, as opposed to just receiving revenue on a per-play basis.[7] Clear Channel CEO Bob Pittman released a statement to the press, saying that the deal not only allows for Glassnote Entertainment Group artists to participate in Clear Channel’s radio revenues, but “it also creates a vibrant new digital radio business model that we believe will provide more money for the artists and the labels and more digital choices for the consumer.”[7] Popular Glassnote artists that will benefit from this deal include Mumford and Sons, Childish Gambino, and Phoenix.

October

On October 25^th, Clear Channel announced that the company successfully completed a private debt exchange of $1,999, 815,000 for new notes that are worth the same principal amount but due in 2019.[9] As Clear Channel is currently in almost $20 billion in debt,[10] this debt exchange is a step in the right direction for providing the company with “greater flexibility to manage our debt maturities in the future,” says company Executive Vice President and Chief Financial Officer Tom Casey.[9] The offering was reportedly highly oversubscribed, which shows that debtholders are prepared to allow Clear Channel more years to repay some of its debt.[11]

Throughout the week of October 27^th, Clear Channel dismissed dozens of local radio D.J.’s across the country in an effort to revamp their 600 U.S. regional stations. In a company statement, spokeswoman Wendy Goldberg said the firings came about because Clear Channel rethought their regional market strategy and “reinvented our operations in those markets in a way that will let us…succeed using all of Clear Channel’s resources, scale and talent.” However, the layoffs proved controversial, as many media reform groups believe that Clear Channel is sacrificing radio’s integrity by replacing locally produced programs with less costly shows that are syndicated nationally.[10]

On October 29^th, Clear Channel announced that it had stuck a deal with another record label, Naxos. Naxos is America’s largest digital distributor of independent

Naxos Logo [14]

classical music, with over 30,000 albums from various classical labels, including 6,500 on its own labels.[12] The deal is different from Clear Channel’s previous deals with Big Machine and Glassnote, as it only permits Clear Channel to pay Naxos for digital, not terrestrial, radio play.[13] The agreement is representative of Clear Channel’s current desire to continue to help radio permeate the digital world, and as part of the deal Naxos will assist with iHeartRadio’s digital classical station, “Classica.”[12]

November

On November 2^nd, Clear Channel released their quarterly earnings report for the third quarter of 2012, which ended on September 30^th of 2012. Clear Channel Media and Entertainment revenues experienced a 1%, $7 million dollar increase in comparison to the third quarter of 2011. This increase is due in large part to a 3% growth in radio revenues, which occurred as a result of increased national advertising, the growing popularity of digital radio service iHeartRadio, and the iHeartRadio Music Festival.[15]

On November 20^th, Clear Channel announced that its popular digital radio service, iHeartRadio, has been downloaded more than 135 million times and has over 20

iHeartRadio Logo [17]

million registered users. These numbers are particularly impressive, considering that iHeartRadio was launched a mere 13 months ago. In a company statement, Clear Channel Media and Entertainment Chairman/CEO John Hogan said “iHeartRadio has reinvented the digital radio experience and is a key element of how Clear Channel continues to reshape the media and entertainment industry.”[16]

On November 29^th, it was announced that innovative social commerce web site Lockerz made an agreement with iHeartRadio. Lockerz is a website on which users can discover the latest fashion trends and top brands, receive points (called PTZ) for sharing images and videos from the web, and use their PTZ for big discounts on fashion and electronic products.[18] Now, iHeartRadio’s 1,500 live and user-created custom stations are available on Lockerz, and members can earn PTZ for sharing and adding their favorite music and radio stations. Clear Channel hopes the agreement will help iHeartRadio to continue to grow in popularity. “Lockerz has built an incredibly passionate and social user base and is a great distribution platform for us,” said Brian Lakamp, President of Digital for Clear Channel Media and Entertainment.[19]

What’s Next for Clear Channel?

Clear Channel is helping produce the 12-12-12 concert, a show that will take place in New York City on December 12, 2012, with all proceeds from ticket purchases going to the Robin Hood

Poster for the 12-12-12 concert, featuring some of the notable artists who will be playing at the show [20]

Relief Fund to assist the victims of Hurricane Sandy. The concert has already secured distribution to over one billion people via various mediums to maximize awareness and relief efforts, and in a joint statement, event producers James Dolan (Chairman of The Madison Square Garden Company), John Sykes (President of Clear Channel Entertainment Enterprises) and Harvey Weinstein (Co-Founder and Chairman of The Weinstein Company) said the concert and its media distributors “will enable us to create a tremendous and unprecedented fundraising effort on a global scale to benefit the victims of this devastating storm.”[21]

Tickets to the show are currently available on Ticketmaster

Because of its current debt situation, Clear Channel could be experiencing some financial turmoil in the future. According to a Moody’s report released during the week of December 5^th, while Clear Channel should be able to manage the amount of debt they have due through 2015, they could very well be unprepared to deal with the $10 billion of debt that will be due in 2016. Moody’s senior analyst Scott Van den Bosch writes that “the company’s ability to avoid restructuring will be challenging as debt levels will exceed our expected asset value. The possibility of a restructuring or a distressed exchange remains high…in our downside scenario the company is likely to face a restructuring of its balance sheet in excess of $16 billion in debt.” It is possible that Clear Channel will be able to avoid the restructuring, but it is going to “depend on the receptivity of the financial markets and moderate underlying interest rates.” So, in the future, Clear Channel will be very sensitive to changes in the economy.[22]

Contact Clear Channel

Wish to contact Clear Channel Communications?

Web: http://www.clearchannel.com

Mail: 200 E. Basse Rd. San Antonio, TX, 78209.

Phone: (210) – 822 – 2828

Sources

1.http://www.mxdwn.com/wp-content/uploads/2011/11/clear_channel-logo.gif

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

3.http://www.cjr.org/resources/?c=clearchannel

4.http://investing.businessweek.com/research/stocks/people/person.asp?personId=3155827&ticker=CCMO

5.http://www.clearchannel.com/Corporate/PressRelease.aspx?PressReleaseID=1166&p=hidden

6.http://www.radioinfo.com/tag/glassnote-entertainment-group/