In addition, we commit ourselves to creating the best content
in our markets. Our magazines routinely dominate their
industry awards ceremonies – last year, Texas Monthlywon a
coveted National Magazine Award, and Emmis publications
claimed more than half of the awards at the City and
Regional Magazine competition. Our radio stations feature
some of the industry’s most popular personalities – in 2003,
Emmis people and stations were awarded three Marconi
Radio Awards. And our television operations are regularly
honored by journalism organizations for their news gathering
and community service. In short, we provide our markets
with reliable, high-quality content – content that helps us
assemble the audiences our advertisers want to reach. 
We then generate revenue by overallocating to sales. We
give our teams well-developed strategies, clearly defined
brands and solid products. We build bigger, better sales
forces and put a greater emphasis on local dollars than our
competitors. We hire aggressive managers, set ambitious
goals and then watch our people work harder and smarter
than anyone else.
We also seize the right opportunities and make the most 
of them. As the cost of buying radio properties has gone
through the roof, we have been careful about buying.
However, when we had a chance to acquire the LBJ stations
in Austin, we knew it was the right fit: good stations, a
tremendous heritage and a great culture, all with an opportu-
nity for growth. And we’ve already built on that group’s track
record – since we bought them, we’ve reformatted one sta-
tion and quickly sent it to No. 1 in the market, and we’ve
pushed revenues up 9 percent for the entire group.
Finally, we innovate. Why has Emmis, traditionally a radio
company, become the company to emulate in TV? Because
we approached TV in a way it’s never been approached
before. Why do we operate leading hip-hop stations in mar-
kets across the nation? Because we pioneered the concept.
Why have we created a new “Music with Class” format in St.
Louis’ Red 104.1? Because we believe we see a new oppor-
tunity. We know that successful companies don’t follow the
pack. They lead it, and that’s what we’ll always do.
The year ahead
That last point – innovation – is an important one, especially
for the future of Emmis, because we are planning something
that could change the face of American TV and once again
demonstrate that Emmis is a company that leads the way.  
Forty years ago, Americans began taking down their TV
antennas and severing broadcasters’ direct link to television
audiences. Since then, the cable companies—the middlemen
who replaced us—have created more than $300 billion of
value for themselves. However, changes in technology have
given broadcasters the ability to provide the American public
with the most popular TV channels, without the middlemen
and at a more reasonable price. 
We are developing an innovative model that will leverage
that technology to get broadcast companies back into the
game. I believe it has the potential to revolutionize the 
television industry. I also believe it will add substantial value
to your investment. 
We unveiled this concept at the National Association of
Broadcasters meeting in April. I am proud to say that 11
other television companies joined us at that meeting to
express their support for what we’re calling the Broadcasters’
Initiative, and more are signing on each week. Once again,
Emmis has leveraged innovation to take a leading role in our
industries.
We’ll continue to use innovation to push us forward.
Meanwhile, we’ll also build and maintain the best teams, pro-
duce the best media content, outhustle and outsell our com-
petitors, seize the best opportunities and operate this com-
pany better than any other.
In other words, you can count on Emmis to continue to do
what it has always done: Outperform.
Thank you for your belief and investment in Emmis.
what it has always done: outperform.
Jeffrey H. Smulyan