Specialist
Former C-level executive at iHeartRadio
Agenda
- Content operations after separation of Clear Channel Outdoor
- iHeartRadio partnerships with Honda, Samsung, Google and Roku
- Pathway to deleveraging after restructuring
Questions
1.
iHeart filed for bankruptcy last March and is going through restructuring now. Could you start with your updated view of the business and how it’s positioned in radio?
2.
What is your sense of how broadcast radio is positioned relative to other forms of entertainment, not just satellite and digital, but video? Even if iHeart is positioned advantageously against Cumulus and Entercom, are broadcast declines of the last 10-15 years likely to continue at historical rates?
3.
How does iHeart’s digital product fare against the incumbents in digital, Spotify and SiriusXM, soon to be Sirius-Pandora, as it now competes with digital as well as other broadcasters?
4.
For all the branding benefits of concerts and events, do those investments result in new revenues?
5.
Digital is central to the branding message but still makes up a minority portion of revenues. Would you consider digital a primary growth driver for iHeart?
6.
One rationale, over the long term, could be the lower infrastructure costs associated with streaming. How much might iHeart be able to save by shifting toward digital, considering that it wouldn’t have to build out the towers and manage the real estate?
7.
Broadcast historically focused on local markets but iHeart is now widening its reach. How has the importance of reach changed over the last 10 years or so?
8.
iHeart ought to have a little more flexibility to refocus on the core and re-invest in operations post- restructuring. What is your sense of how iHeart is positioned across its key markets?
9.
What is your sense of how advertisers are approaching the question of terrestrial versus digital placement in top markets?
10.
How does the ROI that iHeart can offer a prospective advertiser compare to that of Google or Facebook?
11.
How would you say iHeart compares to other broadcasters on the technical front, when it comes to things like programmatic ad selling, attribution and analytics?
12.
iHeart has made a push into podcasting. Is that a scalable business model for a company of iHeart’s size? Does it need to keep acquiring content, as it did with Stuff Media?
13.
The restructuring process included spinning off Clear Channel Outdoor, the billboard advertising business, which contributed 43% of iHeart revenues. Is that a significant loss or does it allow iHeart to refocus on core radio operations?
14.
I would think that iHeart could milk the cash cow of terrestrial assets to fund investment in new growth, whether in digital, podcasts, events or elsewhere. Is that a fair way to look at the business?
15.
Selling off stations is another option for generating cash. Is that a possibility? And are there potential buyers of iHeart stations out there?
16.
John Malone at Liberty, who has an interest in Sirius, has publicly discussed his interest in acquiring some or all of iHeart. Is that a possibility? Would that make strategic sense for iHeart?
17.
Would it make strategic sense to John Malone? Is iHeart a fit in the Liberty portfolio?
18.
iHeart brought in a high-profile and expensive CEO, Bob Pittman, to replace John Hogan. How would you characterise management strategy under Pittman?
19.
You touched briefly on the ROI that iHeart is able to offer prospective advertisers. How has that ROI changed over the years, both in terms of the ad tracking technology that iHeart has developed and the rise of digital competitors like Facebook and Google?
20.
Some people have claimed that quick-cash trade deals, that would be the swapping ad inventory for goods and services booked immediately as revenue, are isolated to particular operators, while others claim that it’s widespread in the industry. Is that something iHeart participates in?
21.
Is there anything in your interactions with the investment community that you find is frequently misunderstood about iHeart? Are there any mistaken assumptions you tend to come across?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary one week trial.
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited