Urban One, Inc. and its subsidiaries (Urban One) is an urban-oriented, multi-media company that primarily targets African-American and urban consumers.
The company's core business is its radio broadcasting franchise which is the largest radio broadcasting operation that primarily targets African-American and urban listeners. As of December 31, 2024, the company owned and/or operated 72 independently formatted, revenue producing broadcast stations (including 57 FM or AM stations, 13 HD stations,...
Urban One, Inc. and its subsidiaries (Urban One) is an urban-oriented, multi-media company that primarily targets African-American and urban consumers.
The company's core business is its radio broadcasting franchise which is the largest radio broadcasting operation that primarily targets African-American and urban listeners. As of December 31, 2024, the company owned and/or operated 72 independently formatted, revenue producing broadcast stations (including 57 FM or AM stations, 13 HD stations, and the 2 low power television stations the company operates), located in 13 of the most populous African-American markets in the United States. While a core source of the company's revenue has historically been and remains the sale of local and national advertising for broadcast on the company's radio stations, the company's strategy is to operate the premier multi-media entertainment and information content platform targeting African-American and urban consumers. Thus, the company has diversified its revenue streams by making acquisitions and investments in other complementary media properties. While a core source of the company's revenue has historically been and remains the sale of local and national advertising for broadcast on the company's radio stations, the company's strategy is to operate the premier multi-media entertainment and information content platform targeting African-American and urban consumers. Thus, the company has diversified its revenue streams by making acquisitions and investments in other complementary media properties.
The company's diverse media and entertainment interests include TV One, LLC ('TV One'), which operates two cable television networks targeting African-American and urban viewers, TV One and CLEO TV; the company's 90.0% ownership interest in Reach Media, Inc. ('Reach Media') which operates the Rickey Smiley Morning Show and the company's other syndicated programming assets, including the Get Up! Mornings with Erica Campbell Show, and the DL Hughley Show; and Interactive One, LLC ('Interactive One'), the company's wholly owned digital platform serving the African-American community through social content, news, information, and entertainment websites, including its iONE Digital, Cassius and Bossip, HipHopWired and MadameNoire digital platforms and brands.
The company's core radio broadcasting franchise operates under the brand 'Radio One.' The company also operates other brands, such as TV One, CLEO TV, Reach Media, iONE Digital and One Solution, while developing additional branding reflective of the company's diverse media operations and the company's targeting of African-American and urban audiences.
On April 11, 2023, the company entered into a definitive asset purchase agreement with Cox Media Group ('the CMG Acquisition') to purchase its Houston radio cluster. Under the terms of the agreement, the company agreed to acquire 93Q Country KKBQ-FM, classic rock station The Eagle 106.9 & 107.5 KHPT-FM and KGLK-FM, and Country Legends 97.1 KTHT-FM. The acquisition was completed on August 1, 2023. As part of the FCC approval of and closing conditions of the CMG Acquisition, the company was required to divest two stations KTHT-FM and KROI-FM before it could close the CMG Acquisition. On June 7, 2023, the company entered into a definitive asset purchase agreement with Educational Media Foundation ('EMF') to sell KTHT-FM, and all its assets ('the KTHT Divestiture'). Immediately prior to the closing of the CMG Acquisition on August 1, 2023, the KTHT-FM assets were transferred directly into an irrevocable trust until the sale to EMF was finalized. On November 1, 2023, after the approval by the FCC, the KTHT Divestiture was completed.
In anticipation of the FCC divestiture requirement and the CMG Acquisition, the company agreed to sell its KROI-FM radio broadcasting license along with the associated station assets from the radio broadcasting segment to an unrelated third party.
Segments
The company operates through four reportable segments: Radio Broadcasting; Cable Television; Reach Media; and Digital. Business activities unrelated to these four segments are included in an 'all other' category which the company refers to as 'All Other - Corporate/Eliminations'.
Radio Station Portfolio, Strategy and Markets
As noted above, the company's core business is its radio broadcasting franchise which is the largest radio broadcasting operation in the country primarily targeting African-American and urban listeners. Within the markets in which the company operates, the company strives to build clusters of radio stations with each radio station targeting different demographic segments of the African-American population. This clustering and programming segmentation strategy allows the company to achieve greater penetration within the distinct segments of the company's overall target market. In addition, the company has been able to achieve operating efficiencies by consolidating office and studio space where possible to minimize duplicative management positions and reduce overhead expenses. Depending on market conditions, changes in ratings methodologies and economic and demographic shifts, from time to time, the company may reprogram some of its stations in underperforming segments of certain markets.
For the year ended December 31, 2024, approximately 35.0% of the company's net revenue was generated from the sale of advertising in its core radio business, excluding Reach Media. The company considers its Radio Broadcasting segment to be its core radio business. Within its core radio business, seven of the 13 markets in which it operated radio stations throughout 2024 (Atlanta, Baltimore, Charlotte, Cleveland, Houston, Indianapolis, and Washington, DC) or a portion thereof, accounted for approximately 77.2% of its radio station net revenue for the year ended December 31, 2024.
Substantially all net revenue generated from the company's radio franchise is derived from the sale of local, national, and network advertising, which also includes low-power TV revenue. Local sales are made by the sales staff located in its markets. National sales are made primarily by Katz Communications, Inc. (Katz), a firm specializing in radio advertising sales on the national level. Katz is paid agency commissions on the advertising sold. Approximately 56.0% of the company's net revenue from its core radio business for the year ended December 31, 2024, was generated from the sale of local advertising, and approximately 35.4% from sales to national advertisers, including network and syndication advertising.
Cable Television, Reach Media and Digital Segments, Strategy and Sources of Revenue and Income
As a diversified media company, the company's operations include media forms that are complementary to the company's radio business. In a strategy similar to the company's radio market segmentation, the company has multiple complementary media and online brands. Each of these brands focuses on a different segment of African-American consumers. With the company's multiple brands, the company is able to direct advertisers to specific audiences within the urban communities in which the company is located, or to bundle the brands for advertising sales purposes when advantageous.
TV One, the company's primary cable television franchise targeting the African-American and urban communities, derives its revenue from advertising and affiliate revenue. Advertising revenue is derived from the sale of television airtime to advertisers and is recognized when the advertisements are run. TV One also derives revenue from affiliate fees under the terms of various affiliation agreements generally based upon a per subscriber royalty for the right to distribute the company's programming under the terms of the distribution contracts. The company's other cable television franchise, CLEO TV, is a lifestyle and entertainment network targeting Millennial and Gen X women of color that is also operated by TV One, LLC. CLEO TV derives its revenue principally from advertising.
Reach Media, the company's syndicated radio unit, primarily derives its revenue from the sale of advertising in connection with its syndicated radio shows, including the Rickey Smiley Morning Show, the Get Up! Mornings with Erica Campbell Show, and the DL Hughley Show. In addition to being broadcast on 47 Urban One stations, its syndicated radio programming was also available on 225 non-Urban One stations throughout the United States as of December 31, 2024.
The company has launched websites that simultaneously stream radio station content for each of the company's radio stations, and the company derives revenue from the sale of advertisements on those websites. The company generally encourages its web advertisers to run simultaneous radio campaigns and use mentions in the company's radio airtime to promote its websites. By providing streaming, the company has been able to broaden the company's listener reach, particularly to 'office hour' listeners, including at home 'office hour' listeners. Streaming has had a positive impact on the company's radio stations' reach to listeners. In addition, the company's station websites link to its other online properties operated by the company's primary digital unit, Interactive One. Interactive One operates the largest social networking site primarily targeting African-Americans and other branded websites, including Bossip, HipHopWired and MadameNoire. Interactive One derives revenue from advertising services on non-radio station branded websites, and studio services where Interactive One provides services to other publishers. Advertising services include the sale of banner and sponsorship advertisements. Advertising revenue is recognized as impressions (the number of times advertisements appear in viewed pages) are delivered.
Finally, the company has made other investments in the entertainment industry, such as the company's past investment in MGM National Harbor, a casino operation in Prince George's County, Maryland. The company's MGM Investment entitled the company to an annual cash distribution based on net gaming revenue from gaming activities conducted on the site of the facility.
Competition
The company's digital and cable television segments compete for the time and attention of internet users and viewers and, thus, advertisers and advertising revenues with a wide range of internet companies, such as Amazon, Netflix, Yahoo!, Google, and Microsoft, with social networking sites, such as Facebook and TikTok.
History
The company was founded in 1979. It was incorporated in 1996. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in 2017.
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