NEPR Annual Board Meeting: Martin Miller


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NEPR Annual Board Meeting: Martin Miller

  1. 1. Public Radio Regional Organizations (PRRO)National Conference and Meeting with NPR– Nov. 2012 Attended by: Eastern Region Public Media (ERPM), Public Radio in MidAmerica (PRIMA), Western States Public Radio (WSPR) and California Public Radio (CAPR)Strategic Implications for New EnglandPublic Radio2012 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
  2. 2. Presented by Mark Fuerst,Director of Strategic Initiatives, Current 845-876-2577
  3. 3. Session 1: The tale of two systems Revenue grows for public radio stations, declines for public tv stationsThe total cashrevenue for public Public Television and Radio – Total Cash Revenueradio stations has Cumulative Percent Change Since1999, Adjusted for Inflation (2010 dollars)increased by over 40 50%percent since 40%1999, after adjustingfor inflation. During 30%the same period, totalcash revenue for 20% RADIOpublic televisionstations declined by 10% TVmore than 20 percent. 0%In 2010, public radio 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010stations recovered -10%most of the groundlost during the -20%recession. Publictelevision stations‟ -30%revenue continued to Source: Corporation for Public Broadcasting Station Resource Groupdecline. STATION RESOURCE GROUP Context for Planning 4
  4. 4. Individual giving has Public Radio Stations Support, Adjusted for Inflation (x1,000)fueled the financialgrowth of public radio 350,000 Individual givingacross two decades. IndividualsFrom FY 1990 to FY 300,000 Business2009, individual giving CPB and governmentto public radio has 250,000 Universities Businessnearly tripled, after Otheradjusting for inflation. 200,000This is a compoundedannual growth rate of 150,0005.8%.Despite a recent dip 100,000attributable to therecession, business Othersupport has also 50,000 Gvmt + Univgrown significantly at 0a 4.2% compounded 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09annual rate. Source: CPB Public Broadcasting Revenue Station Resource Group STATION RESOURCE GROUP Context for Planning 5
  5. 5. 6.0 From 1995 through 5.0 2010, PTV membership files declined by 37% 4.0 3.0 2.0 1.0 0.0 1995 1998 2001 2004 2007 2010 TV RadioSource: Station CPB Annual Financial Reports
  6. 6. 400 From „02 –‟10 TV Underwriting falls $148mm from $329mm to $181mm300200 From „95 – ‟07: Radio Underwriting triples: $60 mm to $183 mm100 0 1995 1998 2001 2004 2007 2010 TV Underwriting Revenue Radio Underwriting RevenueSource: Station CPB Annual Financial Reports
  7. 7. Tier TV-A: Philanthropic Revenue Fills the Gap Change in Gross Revenue vs. 2001 150 Millions 100 50 0 (50) (100) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Mem+UW$ vs. 2001 MjG+Fnd+Endow/Int vs. 2001 CPB vs. 2001Source: Licensee CPB Annual Financial Reports
  8. 8. A sense of opportunity But dramatic differences in capacityEnormous upside opportunities for revenue growth › Greater productivity in basic support › Major gifts › Principal gifts › Planned givingCapacity to capture this support is unevenly distributed across thesystem.Greatest success will come from aligning success of individualorganizations and growth of the public radio economy as a whole. STATION RESOURCE GROUP Context 9 for Planning
  9. 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
  10. 10. 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
  11. 11. Opportunity 3: Digital• High interest… low specificity.• Needs systems development. Poor quality user experience vs. expectations set by• A strongly shared interest with non- broadcast public media news organizations.• Will be a target for foundation investment.
  12. 12. 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.
  13. 13. 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.Source: Futures Forum Survey – Fall 2012
  14. 14. 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.
  15. 15. 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
  16. 16. Concentrated revenue 32 licensees generate half of public radio’s incomeIndependent – Radio University – Radio Only Joint Radio/TV LicenseesOnly WBUR, Boston KQED, San FranciscoMinnesota Public Radio WAMU, Washington WGBH, BostonNew York Public Radio KCRW, Los Angeles Wisconsin Public RadioSo. California Public Radio WXPN, Philadelphia Oregon Public BroadcastingChicago Public Media Phoenix Public Radio WHYY, PhiladelphiaColorado Public Radio KUT, Austin WABE, AtlantaPuget Sound Public Radio KUSC, Los Angeles WLRN, MiamiVermont Public Radio WUNC, Chapel hill KUHF, HoustonCapital Public WFUV, New York KPBS, San DiegoRadio, Sacramento KERA, Dallas, TXWAMC, Albany WETA, WashingtonIowa Public Radio Michigan Radio, Ann ArborCincinnati Public RadioFour of these organizations operatestations that are licensed toeducational institutions Licensees in each category are listed in order of revenue. Source: Corporation for Public Broadcasting, Annual Financial Reports STATION RESOURCE GROUP Context 17 for Planning
  17. 17. Who is growing fast enough? Tier 1Annual Growth Licensee Format2001 - 2011Over $2MM WNYC Multiple MPR Multiple KPCC-FM News$1 MM - $2MM WAMU-FM News KQED-FM News WBEZ-FM News WBUR-FM News WLRN-FM News$500K - $1MM KOPB-FM News KUOW-FM News KPBS-FM News KVOD-FM Multiple
  18. 18. Who’s growing fast enough: Tier 2Annual Growth Licensee Format2001 - 2011 KCRW-FM Eclectic WUNC-FM News KUHF-FM Classical>News WGUC-FM Classical KLSE-FM Multiple WPLN-FM News$300K - $499K WABE-FM News/Classical VPR Multiple KERA-FM News KXJZ-FM Multiple WHYY-FM News WHRV-FM News WXXI-FM Multiple
  19. 19. Annual Revenue Growth Rate for 315 LicenseesBased on CPB Annual Financial Reports 2001-2011
  20. 20. 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
  21. 21. Annual Revenue Growth Rate for 315 LicenseesBased 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
  22. 22. Spring 2012 Arbitron E-Ranks (diary-based markets only)From the Radio Research Consortium Top 30 Public Radio Subscribers - Spring 2012 Arbitron Monday-Sunday, 6 AM to Midnight Ranked by Metro 12+ AQH Persons
  23. 23. Spring 2012 Arbitron E-Ranks (diary-based markets only)From the Radio Research Consortium Top 30 Public Radio Subscribers - Spring 2012 Arbitron Monday-Sunday, 6 AM to Midnight Ranked by Metro 12+ AQH Persons
  24. 24. Mission StatementCurrent Mission Statement:The stations will provide diverse, high-quality information andmusic programs that inform, educate and entertain the publicthrough programming and outreach to the community. WFCR andWNNZ seek to help individuals explore and enjoy the worldaround them, and enrich the quality of their lives.How about?New England Public Radio connects the communities we serve withnews, information, music and cultural programming that expandsperspectives, cultivates curiosity and inspires community.OrNew England Public Radio connects its audience with news,information, music and cultural programming - expandingperspective, engaging curiosity, and strengthening thecommunity we serve.
  25. 25. Major Goals for FY‟13 – July 1, 2012 – June 30, 2013: Retiring at the end of November 2013…
  26. 26. 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
  27. 27. 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
  28. 28. 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