2. 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

3. Presented by
Mark Fuerst,
Director of Strategic Initiatives, Current
845-876-2577
markfuerst@gmail.com

4. Session 1: The tale of two systems
Revenue grows for public radio stations, declines for public tv stations
The total cash
revenue for public Public Television and Radio – Total Cash Revenue
radio stations has Cumulative Percent Change Since1999, Adjusted for Inflation (2010 dollars)
increased by over 40 50%
percent since
40%
1999, after adjusting
for inflation. During 30%
the same period, total
cash revenue for 20%
RADIO
public television
stations declined by 10%
TV
more than 20 percent.
0%
In 2010, public radio 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
stations recovered -10%
most of the ground
lost during the -20%
recession. Public
television stations‟ -30%
revenue continued to Source: Corporation for Public Broadcasting Station Resource Group
decline.
STATION RESOURCE GROUP Context for Planning 4

5. Individual giving has Public Radio Stations' Support, Adjusted for Inflation (x1,000)
fueled the financial
growth of public radio 350,000 Individual giving
across two decades. Individuals
From FY 1990 to FY 300,000
Business
2009, individual giving CPB and government
to public radio has 250,000 Universities Business
nearly tripled, after Other
adjusting for inflation. 200,000
This is a compounded
annual growth rate of 150,000
5.8%.
Despite a recent dip 100,000
attributable to the
recession, business Other
support has also
50,000
Gvmt + Univ
grown significantly at 0
a 4.2% compounded 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
annual rate.
Source: CPB Public Broadcasting Revenue Station Resource Group
STATION RESOURCE GROUP Context for Planning 5

6. 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 Radio
Source: Station CPB Annual Financial Reports

7. 400 From „02 –‟10 TV Underwriting falls $148mm
from $329mm to $181mm
300
200 From „95 – ‟07: Radio Underwriting triples:
$60 mm to $183 mm
100
0
1995 1998 2001 2004 2007 2010
TV Underwriting Revenue Radio Underwriting Revenue
Source: Station CPB Annual Financial Reports

8. 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. 2001
Source: Licensee CPB Annual Financial Reports

9. A sense of opportunity
But 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
9
for Planning

10. 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

11. 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

12. 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.

13. 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.

14. 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

15. 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.

16. 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

17. Concentrated revenue
32 licensees generate half of public radio’s income
Independent – Radio University – Radio Only Joint Radio/TV Licensees
Only WBUR, Boston KQED, San Francisco
Minnesota Public Radio WAMU, Washington WGBH, Boston
New York Public Radio KCRW, Los Angeles Wisconsin Public Radio
So. California Public Radio WXPN, Philadelphia Oregon Public Broadcasting
Chicago Public Media Phoenix Public Radio WHYY, Philadelphia
Colorado Public Radio KUT, Austin WABE, Atlanta
Puget Sound Public Radio KUSC, Los Angeles WLRN, Miami
Vermont Public Radio WUNC, Chapel hill KUHF, Houston
Capital Public WFUV, New York KPBS, San Diego
Radio, Sacramento KERA, Dallas, TX
WAMC, Albany WETA, Washington
Iowa Public Radio Michigan Radio, Ann Arbor
Cincinnati Public Radio
Four of these organizations operate
stations that are licensed to
educational 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

18. Who is growing fast enough?
Tier 1
Annual Growth Licensee Format
2001 - 2011
Over $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

19. Who’s growing fast enough:
Tier 2
Annual Growth Licensee Format
2001 - 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

20. Annual Revenue Growth Rate for 315 Licensees
Based on CPB Annual Financial Reports 2001-2011

21. Annual Revenue Growth Rate
Based 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

22. 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

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. 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

27. 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.

28. Major Goals for FY‟13 – July 1, 2012 – June 30, 2013:
Retiring at the end of November 2013…

29. 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

30. 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

31. 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