PBS TeacherLinePost Grant Plan

August 19, 2010

Tim Taylor

Agenda• Current Situation• Process• Changes

– PBS Staffing– PBS Budget– Station Model– Course Prices– Revenue Share– Local Course Provider Fees

• Additional funding• Next Steps

Objective: Continue operating the TeacherLine program in a sustainable manner

Current Situation: Grant

• Purpose: 1. Resources and tools for coaches, mentors, professional learning

communities2. Promote and maintain existing courses

• $6.4 million / year• Ended July, 31• 1 year extension

• Grant funds subsidize course fees and revenue share

Current Situation: Program Revenue

• PBS Program Revenue: $1.5m (87% from course fees)• PBS Program Expense

– Salaries & Wages: $1.8m– Research & Evaluation: $1.6m– Payments to Stations: $1.4m

– LIF: $900k– Revenue Share: $500k

– Marketing: $900k– Facilitator Payments: $350k

Process• TeacherLine directors explored several scenarios

and arrived at three options for review• Options: Station, marketing, balanced• Presented options to:

– 6 GMs, 4 consultants, Sr. PBS Mgmt

• Plan details• 7/20 Rollout to staff• Today - Rollout to stations

Changes to…

PBS StaffingPBS Budget

Station ModelCourse Prices

Revenue ShareLocal Course Provider Fees

Assumptions• No grant funds• Enrollment drop 20%• Graduate credit revenue drops 20%• Flat Peer Connection and Course Licensing sales• New course development covers own costs• No new TeacherLine technical development

Variables:Revenue: pricing, # of enrollmentsExpenses: staffing, revenue share, marketing

PBS StaffingSeparate Course & PC business from grant

1. Course & PC Budget (6 staff) - Ongoing– Sr. Director– Facilitation and Community Mgr– Sr. Mgr Online Content – Sales & Support Rep– Tech Mgr– Assoc Director, Marketing/Sales Mgr

2. RTT Grant Budget– 1 person through 7/31/11– Everyone else leaves on 12/31/10

PBS Budget• Revenue $1.8m

• Expenses– Salaries, Benefits, R & U $653k– Revenue Share 417k– Sales & Marketing 387k– Fac. Payments & Comm. Mgmt 228k– Other 108k

101k (buffer)

RTT Grant: $1.1m, 7/31/11 - Marketing

Timeline• August 1

– Separate Course & PC business from grant– Focus on partnerships to increase course sales– Focus on course licensing and PC to increase revenue– Create a business advisory board

• January 1– Raise course prices, reduce revenue share– Reduce course catalog– Simplify station model

Simplified Station Model

Current • Promo (10%) – promotion• LCP (40%) – run courses• SRC (40%) – protected territory & business

plan

Simplified Station ModelNew

1. Participating TL station (20%)• Promotion• Develop Partnerships• Reach & revenue goals• Optional: Local Course Provider (Facilitation standards (i.e.

minimum ed, training, mentoring, compensation)

2. State PD Coordinator (Additional $20/learner – local and nat’l)• Coordinate station activities across state• Contact w/ state DoEd PD office

Station Conversion

Promo

LCP

SRC

TL Station

SC

Example: Idaho

WXYZ

WKRP

WXYZ = TL Station• (20% - their territory only)

WKRP = TL Station & State Coordinator

• 20% - their territory only• $20 per learner across all territories

Open

Course Prices

• Increase regular course (15, 30 & 45hr) prices by $96

• Courses starting after December 31• Offset grant subsidies

Other Products- Peer Connection- Course licensing

Course PricesChanging Current NewELL (10 Hr) $99 $125KERA: Read w/ Me (8 Hr) $99 $125Raising Readers (15 Hr) $129 $145Standard (15 Hr) $169 $265Standard (30 Hr) $199 $295Standard (45 Hr) $249 $345

SameOFT (45 Hr) $525 $525Capstone ($495) $495 $495Capstone ($595) $595 $595

Revenue Share %: SRC & LCP

Current NewELL (10 Hr) 20% 10%KERA: Read w/ Me (8 Hr) 20% 10%Raising Readers (15 Hr) 20% 10%Standard (15 Hr) 40% 20%Standard (30 Hr) 40% 20%Standard (45 Hr) 40% 20%OFT (45 Hr) 40% 20%Capstone ($495) 40% 15%Capstone ($595) 40% 15%TD (30 Hr) 28% 15%TD (45 Hr) 28% 15%Concord (30 Hr) 22% 15%

Revenue Share $: State Coordinator Current New % Change

ELL (10 Hr) $20 $33 64%KERA: Read w/ Me (8 Hr) $20 $33 64%Raising Readers (15 Hr) $26 $35 34%Standard (15 Hr) $68 $73 8%Standard (30 Hr) $80 $79 -1%Standard (45 Hr) $100 $89 -11%OFT (45 Hr) $210 $125 -40%Capstone ($495) $198 $94 -52%Capstone ($595) $238 $109 -54%TD (30 Hr) $56 $64 15%TD (45 Hr) $70 $72 3%Concord (30 Hr) $44 $64 47%

Revenue Share $: LCP Current St Coord (or) TL Station

ELL (10 Hr) $20 $33 $13KERA: Read w/ Me (8 Hr) $20 $33 $13Raising Readers (15 Hr) $26 $35 $15Standard (15 Hr) $68 $73 $53Standard (30 Hr) $80 $79 $59Standard (45 Hr) $100 $89 $69OFT (45 Hr) $210 $125 $105Capstone ($495) $198 $94 $74Capstone ($595) $238 $109 $89TD (30 Hr) $56 $64 $44TD (45 Hr) $70 $72 $52Concord (30 Hr) $44 $64 $44

Revenue Share %: Promo

Current NewELL (10 Hr) 10% 10%KERA: Read w/ Me (8 Hr) 10% 10%Raising Readers (15 Hr) 10% 10%Standard (15 Hr) 10% 20%Standard (30 Hr) 10% 20%Standard (45 Hr) 10% 20%OFT (45 Hr) 10% 20%Capstone ($495) 10% 15%Capstone ($595) 10% 15%TD (30 Hr) 10% 15%TD (45 Hr) 10% 15%Concord (30 Hr) 10% 15%

Revenue Share $ Current New % Change

ELL (10 Hr) $10 $13 30%KERA: Read w/ Me (8 Hr) $10 $13 30%Raising Readers (15 Hr) $13 $15 15%Standard (15 Hr) $17 $53 212%Standard (30 Hr) $20 $59 195%Standard (45 Hr) $45 $69 53%OFT (45 Hr) $53 $105 98%Capstone ($495) $50 $74 48%Capstone ($595) $60 $89 48%TD (30 Hr) $20 $44 120%TD (45 Hr) $45 $52 16%Concord (30 Hr) $20 $44 120%

Revenue Share: State Coordinator compared to PBS

15hr 30hr 45hrState Coordinator $73 $79 $89PBS $68 $76 $98

Local CoursesAssumptions:• New course prices• Class size = 15 learners• Same costs as PBS *

- Facilitator- eCommerce

Goals: 1) Stations make same or more than current revenue2) Revenue Equity: local vs. national enrollment

*Excludes customer support costs

Local Course Fees: Revenue after PBS fees (per learner)

Standard (15 Hr)New 112Current $107

5Standard (30 Hr)

New 135Current $132

3Standard (45 Hr)

New 178 Current $176

3

Local Course: Per Seat Fees Current New

ELL (10 Hr) $40 $100KERA: Read w/ Me (8 Hr) $40 $100Raising Readers (15 Hr) $40 $100Standard (15 Hr) $40 $100Standard (30 Hr) $40 $100Standard (45 Hr) $40 $100TD (30 Hr) $40 $100TD (45 Hr) $40 $100Concord (30 Hr) $40 $100

Local Course: Licensing Fees Current New

ELL (10 Hr) $250 $200KERA: Read w/ Me (8 Hr) $250 $200Raising Readers (15 Hr) $250 $200Standard (15 Hr) $330 $800Standard (30 Hr) $400 $900Standard (45 Hr) $500 $1,000

Local Course Fees: Revenue after PBS fees (per learner)

Standard (15 Hr)New 112Current $107

5Standard (30 Hr)

New 135Current $132

3Standard (45 Hr)

New 178 Current $176

3

Secure Additional Funding

• Spend on:– Sales and marketing– Partnerships– New revenue generating products & services

Next Steps

• Notify facilitators, grad credit provider, course providers

• Modify tools and processes• Create new station agreements