About Salem Media Group

Salem Media Group, Inc. (Salem) operates as a multimedia company in the United States. The company is specializing in Christian and conservative content. The company’s media properties include radio broadcasting, digital media, and publishing entities. The company’s content is intended for audiences interested in Christian and family-themed programming and conservative news talk. The company’s filings with the Securities and Exchange Commission (SEC) are available free of charge under the Investor Relations section of its website at www.salemmedia.com as soon as reasonably practical after electronically filed. Segments The company operates through three segments: Broadcast, Digital Media, and Publishing. Broadcasting The company’s foundational business is the ownership and operation of radio stations in large metropolitan markets. The company assembles market clusters, or multiple radio stations operating within the same geographic market, to achieve operational efficiencies. Several benefits are achievable when operating market clusters. First, the company offers advertisers and programmers access to multiple audiences through airtime on each radio station in that market. Second, the company realizes cost and operating efficiencies by consolidating sales, technical and administrative support, promotional functions, and other shared overhead costs, such as facilities and rent, when possible. Third, additional radio stations in existing markets allows the company to leverage its hands-on knowledge of that market to increase its appeal to new audiences and advertisers. The company creates and distributes programming content though its radio stations, its networks, and its broadcast digital operations that feature many of its national and local on-air hosts. Through Salem Surround, its full-service multimedia marketing agency, the company provides state-of-the-art broadcast and digital marketing services to its customers. The company also produces and delivers programming through the Salem Podcast Network (SPN), Salem News Channel (SNC), and OTT television network, and SalemNOW, an online destination with a wide variety of on-demand conservative and faith-based films. Through its Salem Influencer Network, the company offers social media campaigns through influencers with highly engaged followers that see them as friends and count on them for trusted advice on a variety of topics. Digital Media Digital media allows the company to effectively deliver its content and to provide strategic marketing services to its customers. The company’s editorial staff, including its on-air personalities, provide digital commentaries, programs, text, audio, and video content. The company makes strategic decisions to invest in website development, mobile applications and tablet applications given the ongoing shift in consumer demand. The company continually seeks opportunities to diversify its digital traffic sources to avoid reliance on any one provider. The company offers custom digital product offerings, including tools for metasearch, retargeting, website design, reputation management, online listing services, and social media marketing. The company also publishes digital newsletters that provide market analysis and investment strategies for individual subscribers. Publishing The company publishes books and eBooks for audiences interested in Christian, family-themed, and conservative content and opinion. The company’s strategy to attract highly sought-after authors and high-profile Christian commentators expands its presence in the conservative and Christian media market and increases the likelihood of publishing books that appear on the best-seller lists. Equity Method Investment The company invested in OnePartyAmerica LLC (OPA), an entity formed for the purpose of developing, producing, and distributing a documentary motion picture. Business Strategy The company is fundamentally committed to programming and content emphasizing Christian values, family themes, and conservative news. The company pursues expansion opportunities for its integrated media platform. The company’s integrated multimedia platform includes traditional media, such as radio broadcasting and book publishing, and emerging forms of media including podcasts, mobile applications, websites, and digital publications. The company continues to invest in and build websites, launch mobile and tablet applications, increase the strength and reach of its broadcast signals, promote its authors and on-air talent, and increase distribution and page views for its content. The company’s presence in each of these mediums provides advertisers and programmers with a powerful and integrated platform to reach audiences throughout the United States without compromising the sense of community involvement and branding that it generates through local events and promotions. The company’s recent expansion efforts included investing in an entity formed for the purpose of developing, producing, and distributing a documentary motion picture. Seasonality The company’s operating results are subject to seasonal fluctuations. As is typical in the broadcasting industry, the company’s second and fourth quarter advertising revenue typically exceeds its first and third quarter (year ended December 31, 2022) advertising revenue. Seasonal fluctuations in advertising revenue correspond with quarterly fluctuations in the retail industry. Additionally, the company experiences increased demand for political advertising during election even numbered years, over non-election odd numbered years. Political advertising revenue varies based on the number and type of candidates, as well as the number and type of contested issues. The company also experiences fluctuations in quarter-over-quarter comparisons based on the date on which the Easter holiday is observed, as this holiday generates a higher volume of downloads from its church products websites. Broadcasting The company’s Broadcasting segment includes the operating results of its radio stations, networks, podcasts, news channels, video-on-demand, and its national sales agencies, including Salem Surround, its full-service multimedia agency. National companies often prefer to advertise across the United States as an efficient and cost-effective way to reach their target audiences. The company’s national platform under which it offers radio airtime and digital campaigns can benefit national companies by reaching audiences throughout the United States. Radio Stations As of December 31, 2022, the company owned and/or operated 103 radio stations in 36 markets, including 63 radio stations in 23 of the top 25 markets in the United States, consisting of 33 FM radio stations and 70 AM radio stations. The company also programs the Family Talk Christian-themed talk format station on SiriusXM Channel 131. The company is one of only three commercial radio broadcasters with radio stations in all the top 25 U.S. markets. The company is the third largest commercial radio broadcaster in the United States as measured by number of radio stations and the third largest operator as measured by number of stations in the top 25 U.S. markets. The company programs its radio stations in three main formats, such as Christian Teaching and Talk, News Talk and Contemporary Christian Music (CCM). Other radio station formats include Spanish language Christian Teaching and Talk, Business, Country, Urban, and Classic Hits. Christian Teaching and Talk: The company programs 39 of its radio stations in its foundational format, Christian Teaching and Talk, which is talk programming emphasizing Christian and family themes. Through this format, a listener can hear Bible teachings and sermons, as well as gain insight to questions related to daily life, such as raising children or religious legal rights in education and in the workplace. This format uses block programming time to offer a learning resource and a source of personal support for listeners. Listeners often contact the company’s programmers to donate to their organizations, ask questions and obtain materials on a subject matter or receive study guides based on what they have learned on the radio. Block Programming: The company recognizes revenue from the sale of blocks of airtime to program producers that typically consist of 121/2, 25 or 50-minutes of time. The company sells blocks of airtime on its Christian Teaching and Talk format stations to a variety of national and local religious and charitable organizations that create compelling radio programs. National programmers, such as established non-profit religious and educational organizations, typically purchase time on a Monday through Friday basis with supplemental programming blocks available for weekend release. Local programmers, such as community churches and organizations, typically purchase blocks for weekend releases. Historically, more than 95% of these national religious and charitable organizations renew their annual programming relationships with the company. Satellite Radio: The company programs SiriusXM Channel 131, the exclusive Christian Teaching and Talk channel on SiriusXM, reaching the entire nation 24 hours a day, seven days a week. News Talk: The company programs 32 of its radio stations in a News Talk format. The company’s research shows that its News Talk format is highly complementary to its core Christian Teaching and Talk format. As programmed by Salem, both formats express conservative views and family values. The company’s News Talk format allows it to leverage syndicated talk programming produced by Salem Radio Network (SRN) to radio stations throughout the United States. Contemporary Christian Music: The company programs 12 of its radio stations in a Contemporary Christian Music (CCM) format, branded The FISH in most markets. Through the CCM format, the company brings listeners the words of inspirational recording artists, set to upbeat contemporary Christian music. The company’s music format is branded Safe for the Whole Family, and features sounds and lyrics for listeners of all ages to enjoy and appreciate. Broadcast revenue includes radio advertising spots, programming revenue, digital revenue from each of the company’s radio station websites, digital email blasts, Salem Surround revenue, event revenue, and network advertising revenue. The principal source of network broadcast revenue is from the sale of spot advertising time. Salem Consumer Products, the company’s e-commerce site, generates broadcast revenue from the sale of host content materials. The company recognizes advertising revenue from radio stations as the spots air or are delivered. The company recognizes programming revenue as the programs air. National program revenue is primarily generated from geographically diverse, well-established non-profit religious and educational organizations that purchase time on its stations in a large number of markets in the United States. National program producers typically purchase 121/2, 25 or 50-minute blocks of time on a Monday through Friday basis and may offer supplemental programming for weekend release. The company generates local program revenue from community organizations and churches that typically purchase blocks for weekend releases and from local speakers who generally purchase daily releases. The company’s strategy is to identify and assist quality local programs to expand into national syndication. Salem Radio Network SRNTM, based in Dallas, Texas, develops, produces, and syndicates a broad range of programming specifically targeted to Christian and family-themed talk stations, music stations and News Talk stations. SRNTM delivers programming via satellite to approximately 3,200 affiliated radio stations throughout the United States, including several of the company’s Salem-owned stations. SRNTM operates five divisions, SRNTM Talk, SRNTM News, SRNTM Websites, SRNTM Satellite Services and Salem Music Network, which includes Today’s Christian Music (TCM). Salem Media Representatives Salem Media Representatives (SMR) is the company’s national advertising sales firm with offices in 9 U.S. cities. SMR specializes in placing national advertising on Christian and talk formatted radio stations, as well as other commercial radio station formats. SMR sells commercial airtime to national advertisers on the company’s radio stations and through its networks, as well as for independent radio station affiliates. SMR also contracts with independent radio stations to create custom advertising campaigns for national advertisers to reach multiple markets. Salem Surround Salem Surround is the company’s national multimedia advertising agency with locations in 29 markets across the United States. Salem Surround specializes in digital marketing services for each of the company’s radio stations and websites offering its clients a state-of-the-art full-service digital marketing strategy. Salem Surround provides custom digital product offerings, including tools for metasearch, retargeting, website design, reputation management, online listing services, and social media marketing. Digital product offerings may include third-party websites, such as Google or Facebook, which can be included in a digital advertising social media campaign. The company manages all aspects of the digital campaign, including social media placements, review and approval of target audiences, and the monitoring of actual results to adjust and modify as needed. Salem Podcast Network The Salem Podcast Network (SPN) is a highly specialized platform for conservative, political, news, and family-oriented podcasts. SPN reaches over 13 million downloads per month, and regularly rank amount the top 100 most downloaded news and political podcasts according to the Apple Podcast Rankings. Salem News Channel The Salem News Channel (SNC) is a conservative news, opinion and commentary television network hosted by a number of engaging, compelling and respected conservative media personalities. SNC’s mission is to serve the media needs of audiences interested in political news and opinion content that is consistent with a Judeo, Christian world vision and seeks to become the leading provider of conservative news and opinion content for the rapidly growing over-the-top (OTT) television and multi-screen digital audience. SalemNOW SalemNOW is an online destination to watch a wide variety of on-demand videos. SalemNOW is dedicated exclusive conservative and faith-based films consisting of box office hits, acclaimed documentaries, music festivals, interviews with top Christian artists, events with the company’s conservative talk show hosts and many other video offerings. SalemNOW can be found on mobile apps and on streaming services such as Roku, Apple TV, Amazon Fire Stick and select smart TVs. Digital Media The company’s digital media segment provides Christian, conservative, investing content, retirement, e-commerce, audio and video streaming, and other resources digitally through the web. Revenue generated from the company’s digital media segment includes advertising arrangements based on cost-per-click, or performance-based advertising; display advertisements where revenue is dependent upon the number of page views; and lead generation advertisements where revenue is dependent upon users registering for, purchasing, or demonstrating an interest in the company’s advertisers’ products or services. The company also generates revenue from digital subscriptions, streaming, downloads, and product sales through its church product websites and investing websites. Revenue is recognized upon digital delivery or page views, downloads and upon shipment of products. The company owns and operates numerous websites including: Salem Web Network (SWN) Christian Content Websites: BibleStudyTools.com is a Bible website for verse search and in-depth studies featuring commentaries, reading plans, and other helpful resources designed as aids to Bible study. Crosswalk.com offers compelling, editorial-driven, biblically based, lifestyle and devotional content to Christians who take seriously their relationship with Christ. Christianity.com offers engaging articles and video focused on exploring the deeper, theological issues and apologetics of the Christian faith. It is also a leading provider of online Bible trivia games. iBelieve.com creates editorial-driven, lifestyle content, focused on helping Christian women use personal experience to examine the deeper issues of life and faith. GodTube.com is a video viewing platform for Christian videos with faith-based, family-friendly content. OnePlace.com is a provider of on-demand online audio streaming for nearly 200 radio programs from more than 185 popular Christian broadcast ministries. Oneplace com serves as both a complement to, and an extension of the company’s block programming Christian radio business. GodUpdates.com provides inspiring stories, thought-provoking articles and videos about topics important to Christians. CrossCards.com provides faith-based, inspirational e-greeting cards for all occasions. ChristianHeadlines.com reports the news of importance to the Christian audience with a headlines blog, Christian worldview commentary, and features on events from the worldwide Christian Church. LightSource.com provides on-demand video streaming for nearly 85 Christian television programs from more than 70 ministry partners. CCMmagazine.com provides information and insight on Christian music. Townhall Media – Conservative Opinion Websites: Townhall.com is an interactive community that brings users, conservative public policy organizations, congressional staff, and political activists together under the broad umbrella of conservative thoughts, ideas and actions. RedState.com is a conservative, political news blog for right of center activists. pjmedia.com is an integrated website that offers conservative news and commentary and is a reliable source for original political news and analysis. Twitchy.com is a website featuring selected quotes and current events centered on U.S. politics, global news, sports, entertainment, media, and breaking news. HotAir.com is a leading news and commentary site with conservative news and opinions. BearingArms.com is a website providing news and resources on Second Amendment issues, gun control, self-defense, and firearms. Salem Church Products Websites: Salem Church Products websites offer resources for churches and ministries in the areas of church media, worship, children’s and youth ministry, preaching, teaching and employment. These websites include: SermonSearch.com is a subscription-based resource for preachers and teachers with preparation materials like sermon outlines, illustrations, and preaching ideas from many of America’s top Christian communicators. WorshipHouseMedia.com is an online church media resource, providing videos and other multi-media resources to churches to enhance worship and sermons. Shiftworship.com is a subscription-based website offering motion backgrounds, stills, and countdowns to help churches create a visual worship experience. CenterlineNewMedia.com provides access to media assets for church services, including worship backgrounds, mini movies, and social graphics. WorshipHouseKids.com provides children’s and family ministry videos and media to make children’s ministry fun, interactive, and easy. PlaybackMedia.com offers motion backgrounds, stills and countdowns to help churches create a visual worship experience. Preaching.com is a leading resource for pastors and church leaders that offers tools and ideas to help them lead well. ChurchStaffing.com is a source of job search information for churches and ministries offering a platform for personnel and staff relations. This site allows those seeking employment to submit resumes and view job listings. ChristianJobs.com provides services catering to the hiring needs of Christian-based businesses, nonprofit organizations, and ministries. The site connects these organizations with thousands of job seekers through its online presence and partnerships with Salem’s radio stations. Childrens-Ministry-Deals.com offers a variety of children-focused digital resources, including videos, song tracks, sermon archives, job listings, and Sunday school curriculum to pastors and Church leaders. Digital Investing and Retirement Websites and Publications The company’s digital platform includes the following investing and retirement websites and publications: Eagle Financial Publications provides market analysis and investment strategies for individual subscribers to newsletters from a variety of investing commentators, including Bob Carlson, Bryan Perry, Jim Woods, Dr. Mark Skousen, and Jon Johnson. DividendInvestor.com offers stock screening tools and dividend information for individual subscribers to obtain dividend information and data. StockInvestor.com provides market analysis and investment strategies, recommendations, and opinions for individuals interested in the stock market. Retirementwatch.com provides information on retirement and estate planning related topics. DayTradeSpy.com provides information on trading calls and puts. Digital Mobile Applications The company’s digital mobile applications, available in iOS and/or Android platforms, provide another means by which its content is available to its audiences. The company’s mobile applications include the following Daily Bible Devotion; King James Bible; Daily Bible; Christian Radio; OnePlace; Light Source; ¡Citas y Mas Citas!; Bíblia Portuguese Bible; Bibliya Tagalog Bible; Japanese Bible; La Bibbia; La Biblia Reina Valera; Louis Segond French Bible; Luther Bible German; Spanish Bible Reina Valera; Vietnamese Bible; Vulgate Latin Bible; Twitchy; Bible Study Tools; Bible Quotes; Bible Trivia; iBelieve; Bible Baseball Trivia; Christian Ecards; One Bible; Bible+1; Biblia; HotAir; Townhall.com; and Red State. Publishing The company publishes books for audiences interested in Christian and family-themed content, as well as conservative news and opinion. The company operates two businesses in its book publishing segment. Regnery Publishing is a traditional book publisher that has published dozens of bestselling books by leading conservative, Christian and history authors and personalities. Books are sold in traditional printed form and as eBooks with the following categories: Regnery Political – Regnery Political, dedicated to serious works of cultural, social, and political analysis, is a reaffirmation of Regnery’s tradition of publishing original and penetrating conservative thinkers. Regnery History – Regnery History brings new light to old subjects and introduces stories that deserve attention but may have been ignored or even covered up in the past. Regnery Kids – Regnery Kidsbooks are non-partisan, entertaining, and brilliantly written and illustrated by award-winning authors and artists. Gateway Editions – Regnery Gateway, dedicated to serious works of cultural, social, and political analysis, is a reaffirmation of Regnery’s tradition of publishing original and penetrating conservative thinkers. Salem Books – books to help people grow in their faith and find comfort, encouragement, practical advice, and timeless wisdom in compelling books by trusted authors. Salem Author Services is a self-publishing service for authors through two imprints: Xulon Press and Mill City Press. Xulon Press offers print-on-demand self-publishing services for Christian authors while Mill City Press serves general market authors. Acquisitions On December 30, 2022, the company acquired the book inventory and publishing rights to many book titles, including a series of well-known Student Guides of Intercollegiate Studies Institute (ISI) Publishing. On December 2, 2022, the comopany acquired radio station KKOL-AM in Seattle, Washington. On October 1, 2022, the company acquired websites and the related assets of DayTradeSPY, a financial publication. On May 2, 2022, the company acquired websites and the related assets of Retirement Media. On May 1, 2022, the company began operating radio station WYDB-FM in Dayton, Ohio under a Time Brokerage Agreement (TBA). On February 15, 2022, the company acquired radio station WLCC-AM and an FM translator in the Tampa, Florida market. The WLCC transmitter site will be used to diplex radio station WTBN-AM due to the company’s sale of the WTBN-AM transmitter site. Divestitures On June 27, 2022, the company sold 9.3 acres of land in the Denver, Colorado area. The land was being used as the transmitter site for radio stations KRKS-AM and KBJD-AM and was an integral part of its broadcast operations for these stations. The company will continue broadcasting both KRKS-AM and KBJD-AM from this site via a perpetual agreement with the buyer. On May 25, 2022, the company sold radio stations WFIA-AM, WFIA-FM and WGTK-AM in Louisville, Kentucky with credits applied from amounts previously paid, including a portion of the monthly fees paid under a TBA. On January 10, 2022, the company closed on the sale of 4.5 acres of land in Phoenix, Arizona. The land was being used as the transmitter site for radio station KXXT-AM and was an integral part of the company’s broadcast operations for that station. Geographic Information The company’s customers are based in various locations throughout the United States. Regulations The ownership, operation, and sale of broadcast stations, including those licensed to Salem, are subject to the jurisdiction of the Federal Communications Commission (FCC), which acts under authority derived from The Communications Act of 1934, as amended, and the rules and regulations promulgated thereunder (Communications Act). The company utilized certain benefits of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Consolidated Appropriations Act (CAA). History Salem Media Group, Inc. was founded in 1974 as a California corporation. The company was incorporated in 1986.