Clear Channel Enters Programming Business, Eyes Branded Opportunities

Media conglomerate Clear Channel Communications--which is responsible for the distribution of massive amounts of content through its sizable network of radio and TV stations and concert venues--now wants to be a producer of programming as well. And for the right sponsor, it could end up being branded programming.

The company is expanding its capabilities in event marketing to include broadcast production. Specifically, clients who sign on to sponsor one of Clear Channel's many live concerts or sporting events will not only be able to market their products on-site, but will reach a potentially larger audience, as Clear Channel plans to produce original broadcasting content from such events. Such content could be used to develop original television programming, DVDs, or CDs.

For example, beginning in February, the City of Las Vegas partnered with Clear Channel to produce a yearlong series of events commemorating the city's 100th anniversary, the "Centennial Celebration." As part of this partnership, Clear Channel is producing programming on these events for future TV broadcast.

The company's new broadcast production offering will be packaged with the company's extensive special events services. These services will be housed within the newly formed Clear Channel Entertainment Properties, which falls under the company's Clear Channel Entertainment division.

Clear Channel has long used its collection of owned-and-operated venues to produce concert tours and events for clients that allow for multiple promotional touchpoints for sponsors. Clients include Coca-Cola, Tommy Hillfiger, Jagermeister, and TMobile, among others.

According to Clear Channel, more than 66 million people attend approximately 26,000 Clear Channel Entertainment events each year.

In developing such sponsorships, the company is selling flexibility to advertisers. Rather that pushing existing sponsorship packages, Clear Channel is willing to allow advertisers to dream big--even creating their own events.

"We have the ability to create from the ground up," said Clear Channel Entertainment Properties President Bruce Eskowitz.

For example, last year Clear Channel helped create the "Coors Mountain Jam," a summer concert festival launched in August 2003. In such a scenario, Clear Channel assumes all organizational responsibilities, including booking artists, securing venues, and selling tickets.

The expansion into production services has forced Clear Channel to acquire some new talent in recent years. "We've got a number of really talented people from the TV industry," Eskowitz said.

C.C. Entertainment has already produced some noteworthy programming to date, including the well-received documentary "The Curse of the Bambino," which aired on HBO last year, as well as Fox's New Year's Eve show "American Party."

Unlike traditional media vendors who simply sell sponsorships, Clear Channel says its willingness to assume a portion of risk in creating and executing such programs makes them more attractive to budget-conscious advertisers.

"We always take part of the risk," Eskowitz said. "We are not going to ask companies to do anything that is not going to work. We have to make a profit ourselves."

Sometimes that means saying no. "We will tell them if something is not realistic," Eskowitz said.

The company also touts its ability to work with clients' return-on-investment goals. "As long as we understand what a company is trying to do, we can put a program together," he said, adding: "As long as we understand how we are going to be measured."

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