HD Radio Monetization

HD RadioTM Technology

Monetizing your HD Radio Channels

Jeff Detweiler Executive Director, Broadcast Business Development Agenda

▪ Allows multicasting on several channels at once using the same frequency

1 Frequency = ▪ Multicasting is radio’s first “killer app” since the Analog Radio 1 Program advent of FM broadcasting 1 Frequency = ▪ Provides additional content to help bolster Multi-Program listenership and Time Spent Listening

Washington Sports Radio ▪ Helps stations bracket target demo to become more Demo: Men 18-54 attractive to advertisers

CBS National Sports Radio ▪ On-air platform to try new formats and fine-tune Demo: Men 18-54 programming ideas

New York Sports Radio ▪ A way to extend a station’s brand and increase reach Demo: Men 18-54 and market presence

Baltimore Sports Radio Demo: Men 18-54

▪ Tune-out can become tune-over to your other HD Radio channels

▪ The creation of up to 3 more broadcast channels for you to market

▪ The chance to keep your existing listeners for longer periods

▪ The prospect of generating new listenership from a new audience

▪ The ability to convert occasional listeners to brand-loyal listeners

▪ The creation of cost-effective discrete demographic targeting

▪ “Training Wheels” to help fine-tune new formats on-air

▪ THE OPPORTUNITY TO MAKE MORE MONEY!

▪ A wide range of hyper-targeted new formats are already on the air

▪ Local stations are creating unique, market-specific formats

▪ Create a salable digital radio sales package by creative use of new & existing programming

▪ Produce a format complementary to your main channel target demographic

▪ Simulcast your existing AM to balance audience delivery and create broad appeal WWFS-FM / New York

Digital simulcast Adult Contemporary of analog signal Demo: Women 25-54

Targeted smooth Smooth Jazz jazz format Demo: Adults 35-64 Simulcast of All News co-owned AM station Demo: Men 25-64

▪ Forward-looking sports teams are migrating to HD Radio stations

▪ Main marketing premises:

▪ Provide Denver a home for around-the-clock comedy

▪ Attract advertising from comedy tours appearing in local area, clubs and restaurants

▪ Generate long listening blocks as opposed to music formats

▪ Key selling propositions:

▪ Unique programming not available on any other local radio station

▪ Dedicated website for fan web promotion - Disney World is a website sponsor

▪ Viral videos used on the website to drive impressions and convert listeners

▪ Unique sales opportunity:

▪ Offer advertisers unique commercial environment

▪ Main marketing premises:

▪ Enthusiastic Pittsburgh Penguins hockey team support regionally across broad demographics

▪ Strong local advertiser support as part of 37 station regional network

▪ Heavy team local media coverage and viral web presence

▪ Key selling propositions:

▪ Leverage strength of team “brand” for continued product growth & to help negotiate rights

▪ Winning station bundled dedicated 24/7 HD2 for “All Penguins Hockey, All The Time”

▪ “HD is the new FM” positioning to listeners to add to the cool factor

▪ Unique sales opportunity:

▪ 4-hour music blocks featuring content of a different player’s iPod every evening

▪ Main marketing premises:

▪ No longer have to decide between Christian music, sermons or educational material

▪ Each channel can serve a totally different segment of the community

▪ The different demographics reached by the combination make for an attractive advertiser package

▪ Key selling propositions:

▪ Main channel targets Adults 25-54 with family-friendly music & personalities

▪ HD2 channel is geared to Adults 35+ carrying Christian talk and teaching programs

▪ HD3 channel reaches Adults 18-34 with Christian rock, pop, hip hop and R&B

▪ Unique sales opportunity:

▪ The ability to call on virtually any advertiser and deliver their customers

▪ Main marketing premises:

▪ No longer have to decide between Christian music, sermons or educational material

▪ Each channel can serve a totally different segment of the community

▪ The different demographics reached by the combination make for an attractive advertiser package

▪ Key selling propositions:

▪ Main channel targets Adults 25-54 with family-friendly music & personalities

▪ HD2 channel is geared to Adults 35+ carrying Christian talk and teaching programs

▪ HD3 channel reaches Adults 18-34 with Christian rock, pop, hip hop and R&B

▪ Unique sales opportunity:

▪ The ability to call on virtually any advertiser and deliver their customers

▪ Main marketing premises:

▪ Programmer wanted high-profile 24/7 service to cover New York, Philadelphia and Miami

▪ Huge, well-educated & affluent Russian-speaking population in key metropolitan areas

▪ Opportunity to market their well-heeled audience outside strictly Russian advertisers

▪ Key selling propositions:

▪ Approached local HD2 stations with straight cash lease deal

▪ Programming a mix of talk, music & news appealing to advertisers

▪ Geared to appeal to both First and Second-generation Russian consumers

▪ Unique sales opportunity:

▪ Were able to negotiate iHeartRadio web channel as part of their lease

▪ Main marketing premises:

▪ Program a hard-rocking radio station that filled a specific programming gap in the market

▪ Station was initially launched 100% interruption-free to quickly build audience

▪ Create channel that supplements their main channel target demographic

▪ Key selling propositions:

▪ Recorded drops from metal bands used on-air to build “hip” image for advertisers

▪ Live broadcasts from local clubs created exclusive sales opportunities

▪ Social media promotion/engagement delivered value-added element to spots

▪ Unique sales opportunity:

▪ Branded promotional items tied advertiser & station logos together

▪ What do all these stations have in common?

▪ All viewed the technology as creating new sales opportunities

▪ All treated their HD2 / HD3 channels as additional radio stations to program and promote

▪ All targeted their programming to fill niche in market currently unserved or under-served

▪ All were willing to “seed” the marketplace with receivers for key potential advertisers

▪ All created additional sales incentives for their salespeople selling HD2 / HD3 sales packages

▪ All emphasized that sales and programming needed to support these additional channels

and . . .

▪ None just “threw in” these HD2 / HD3 commercials at no charge with main channel buys

▪ All treated their HD2 / HD3 channels as additional radio stations to program and promote Product’s▪ All targeted their programming to fill Valueniche in market currently unservedIs orDirectly under-served ▪ All were willing to “seed” the marketplace with receivers for key potential advertisers

▪ All created additional sales incentives for their salespeople selling HD2 / HD3 sales packages

Proportional▪ All emphasized that sales and programming needed Toto support theseWhat additional channels You

and . . . ▪ None just “threw in”Charge these HD2 / HD3 commercials atFor no charge with It! main channel buys Summary

▪ HD Radio Technology . . .

▪ . . . Provides enhanced audio quality for both AM and FM

▪ . . . Provides additional new business opportunities

▪ . . . Provides new marketplace growth possibilities

▪ . . . Provides potential current and future new revenue sources

▪ . . . Provides unlimited ways to target and deliver new audiences

▪ . . . Provides natural line extensions for your station’s brand

▪ . . . Provides growth path for smaller advertisers