nepr annual board meeting: martin miller
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Public Radio Regional Organizations (PRRO) National Conference and Meeting with NPR– Nov. 2012
Attended by: Eastern Region Public Media (ERPM), Public Radio in Mid America (PRIMA), Western States Public Radio (WSPR) and California Public Radio (CAPR)
Strategic Implications for New England Public Radio
2012 Election• Changing Demographics• Increasing minority population and voting• Aging baby boomers (future impact on some of our programming)
CPB Funding is still not secure• We didn’t get shot between the eyes, but we’re still going to be
dodging bullets for awhile.
Digital Technology• Public radio stations in general are adapting too slowly• Pandora is the number one “radio station” in Los Angeles
Presented byMark Fuerst,
Director of Strategic Initiatives, Current
Public Media Futures Forums
Session 1: The tale of two systemsRevenue grows for public radio stations, declines for public tv stations
The total cash revenue for public radio stations has increased by over 40 percent since 1999, after adjusting for inflation. During the same period, total cash revenue for public television stations declined by more than 20 percent.
In 2010, public radio stations recovered most of the ground lost during the recession. Public television stations’ revenue continued to decline.
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Public Television and Radio – Total Cash RevenueCumulative Percent Change Since1999, Adjusted for Inflation (2010 dollars)
RADIO
TV
Source: Corporation for Public Broadcasting Station Resource Group
STATION RESOURCE GROUP Context for Planning 4
The long-term direction of change is clearIndividual giving is the main driver of public radio stations’ revenue growth
Individual giving has fueled the financial growth of public radio across two decades. From FY 1990 to FY 2009, individual giving to public radio has nearly tripled, after adjusting for inflation. This is a compounded annual growth rate of 5.8%.
Despite a recent dip attributable to the recession, business support has also grown significantly at a 4.2% compounded annual rate.
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
Individuals
Business
CPB and government
Universities
Other
Public Radio Stations' Support, Adjusted for Inflation (x1,000)
Source: CPB Public Broadcasting Revenue Station Resource Group
STATION RESOURCE GROUP Context for Planning 5
Individual giving
Business
Gvmt + UnivOther
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Membership Declines for TV, Grows for Radio
(in millions, as reported annually to CPB)
TV Radio
Source: Station CPB Annual Financial Reports
From 1995 through 2010, PTV membership files declined by 37%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0
100
200
300
400
Business: Sharp Drops for TV, Steady for Radio
(in millions, as reported to CPB, adjusted to 2010 dollars)
TV Underwriting RevenueRadio Underwriting Revenue
Source: Station CPB Annual Financial Reports
From ‘95 – ’07: Radio Underwriting triples: $60 mm to $183 mm
From ‘02 –’10 TV Underwriting falls $148mm from $329mm to $181mm
Tier TV-A: Philanthropic Revenue Fills the Gap
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010(100,000,000)
(50,000,000)
0
50,000,000
100,000,000
150,000,000
Mem+UW$ vs. 2001 MjG+Fnd+Endow/Int vs. 2001
Change in Gross Revenue vs. 2001
Source: Licensee CPB Annual Financial Reports
A sense of opportunityBut dramatic differences in capacity
Enormous upside opportunities for revenue growth › Greater productivity in basic support› Major gifts› Principal gifts› Planned giving
Capacity to capture this support is unevenly distributed across the system.
Greatest success will come from aligning success of individual organizations and growth of the public radio economy as a whole.
STATION RESOURCE GROUP Context for Planning
9
Opportunity 1: Major Gifts
• Proven record of achievement: MGs have already produced $100 MM/year returns (vs. 1995)
• Near unanimous agreement on potential
• Programs are already in place at many stations
Opportunity 2: Sustainer Giving
• Stations have seen major gains.
• Fits the trend to purchase media with monthly fees (think Netflix).
• Attractive pricing: $5/mo vs. $60 right now.
• Moves away from transactions to support.
• Lowers premium/thank-you gift costs
Opportunity 3: Digital
• High interest… low specificity.
• Needs systems development. Poor quality user experience vs. expectations set by Amazon.com.
• A strongly shared interest with non-broadcast public media news organizations.
• Will be a target for foundation investment.
Observation 1: Money—Gross Revenues—is not the issue.“We” have a lot. We are likely to have more.
• After a decade of strong financial growth, the system is emerging from a sharp recession.
• Annual Private/non-gvmt revenues: $630mm vs. CPB funding of $100mm.
• Total Dir. Rev. has grew from $555mm in ‘01 to $918mm in ‘11 (+65%)
… with reasonable prospects to add another $200 mm annually.
Source: Futures Forum Survey – Fall 2012
Changes Going Forward?
Over the NEXT three years stations will– Focus on Revenue Development…
while continuing to • Expand Local News Staffs• Move toward “all news” formats• Invest in online/digital service• “Go local”
The biggest shift: toward funding and sustaining these new service initiatives.
What would it take for YOU to achieve what YOU say you want to do?
• You want to– Go Local– Become a major source of local news– Invest in digital—online and for mobile devices– Increase community engagement/ involvement
All of these aspirations are expensive to start, staff-intensive, and hard to sustain.
Who is actually doing this?– “Going Local”– (Aspiring to be) a major source of local news– Investing in digital—online/mobile devices– (Aspiring to increase) Community engagement
They are…
• Growing by $200,000+/yr over the last 10 years• Have Development Staffing of more than 5
FTEs• Have Development Specialists (Major/Planned
Gifts)• The GM is leading the major gift effort
Concentrated revenue32 licensees generate half of public radio’s income
STATION RESOURCE GROUP Context for Planning
17
Independent – Radio OnlyMinnesota Public RadioNew York Public RadioSo. California Public RadioChicago Public MediaColorado Public RadioPuget Sound Public RadioVermont Public RadioCapital Public Radio, SacramentoWAMC, AlbanyIowa Public RadioCincinnati Public Radio
Four of these organizations operate stations that are licensed to educational institutions
University – Radio OnlyWBUR, BostonWAMU, WashingtonKCRW, Los AngelesWXPN, PhiladelphiaPhoenix Public RadioKUT, AustinKUSC, Los AngelesWUNC, Chapel hillWFUV, New York
Joint Radio/TV LicenseesKQED, San FranciscoWGBH, BostonWisconsin Public RadioOregon Public BroadcastingWHYY, Philadelphia WABE, AtlantaWLRN, MiamiKUHF, HoustonKPBS, San DiegoKERA, Dallas, TXWETA, WashingtonMichigan Radio, Ann Arbor
Licensees in each category are listed in order of revenue.Source: Corporation for Public Broadcasting, Annual Financial Reports
Who is growing fast enough?Tier 1
Annual Growth 2001 - 2011
Licensee Format
Over $2MM WNYCMPR
MultipleMultiple
$1 MM - $2MMKPCC-FM WAMU-FM KQED-FM WBEZ-FM
NewsNewsNewsNews
$500K - $1MM
WBUR-FMWLRN-FMKOPB-FMKUOW-FMKPBS-FMKVOD-FM
NewsNewsNewsNewsNewsMultiple
Who’s growing fast enough:Tier 2
Annual Growth 2001 - 2011
Licensee Format
$300K - $499K
KCRW-FMWUNC-FMKUHF-FMWGUC-FMKLSE-FMWPLN-FMWABE-FMVPRKERA-FMKXJZ-FMWHYY-FMWHRV-FMWXXI-FM
EclecticNewsClassical>NewsClassicalMultipleNewsNews/ClassicalMultipleNewsMultipleNewsNewsMultiple
Annual Revenue Growth Rate for 315 Licensees Based on CPB Annual Financial Reports 2001-2011
Annual Revenue Growth RateBased on CPB Annual Financial Reports 2001-2011 for 314 Licensees
How does WFCR compare?
• WFCR ranks 64 among 314 public radio licensees in revenue growth – well within the top 1/3
• Direct revenue grew 58% between 2001 and 2011 from $2,310,702 to $3,650,669
• At a rate of $133,997 annually
• This annual growth rate is high among similar sized stations in similar markets
Annual Revenue Growth Rate for 315 Licensees Based on CPB Annual Financial Reports 2001-2011
Revenue Growth Goals for WFCR
• $200,000 + growth rate defined as “leading stations”
• Licensees growing by $200,000/yr from 2001-2011 were far more likely to be
• expanding news staff • expanding digital services • building major gifts programs
Spring 2012 Arbitron E-Ranks (diary-based markets only)From the Radio Research Consortium
Top 30 Public Radio Subscribers - Spring 2012 ArbitronMonday-Sunday, 6 AM to MidnightRanked by Metro 12+ AQH Persons
Spring 2012 Arbitron E-Ranks (diary-based markets only)From the Radio Research Consortium
Top 30 Public Radio Subscribers - Spring 2012 ArbitronMonday-Sunday, 6 AM to MidnightRanked by Metro 12+ AQH Persons
Mission Statement
Current Mission Statement:
The stations will provide diverse, high-quality information and music programs that inform, educate and entertain the public through programming and outreach to the community. WFCR and WNNZ seek to help individuals explore and enjoy the world around them, and enrich the quality of their lives.
How about?
New England Public Radio connects the communities we serve with news, information, music and cultural programming that expands perspectives, cultivates curiosity and inspires community.
Or
New England Public Radio connects its audience with news, information, music and cultural programming - expanding perspective, engaging curiosity, and strengthening the community we serve.
Major Goals for FY’13 – July 1, 2012 – June 30, 2013:
Retiring at the end of November 2013…
Major Goals for FY’13 – July 1, 2012 – June 30, 2013:CONTUNUED • Start search for a new morning classical
host/producer
• Conduct a successful search for a News Director
• Complete staff communication goals
• Continue work on all aspects of the Capital Campaign • funding to get WNNI, Adams on the air (all news WNNZ)• bridge loan for facilities• New Markets Tax Credits• Franklin County Capital Campaign Committee launched• events
Major Goals for FY’13 – July 1, 2012 – June 30, 2013:CONTINUED • Search for additional FM frequencies for all-news
WNNZ in Hampshire and Hampden Counties
• Put a new translator on the air for WFCR in Worcester
• Reach the Annual Fund Goal
• Begin construction at 1525 Main Street
Major Goals for FY’13 – July 1, 2012 – June 30, 2013:CONTINUED
• Engage the Board in discussions about• Participation in annual fundraising • Diversity with NPR• FY’13 and FY’14 budget situation• Complete the budget for 1525 Main Street• Create an intranet for board members