... in a time of radical change PRIMA September 2006
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1 ... in a time of radical change PRIMA September 2006
2 This presentation was developed by Tom Thomas and Terry Clifford, co-ceos of the Station Resource Group and presented at the September 2006 meeting of Public Radio in Mid-America (PRIMA) 6935 Laurel Ave., Takoma Park, MD and Copyright 2006
3 ... a time of radical change The public media organizations formerly known as stations Using technologies no longer limited to radio Serving individuals formerly known as the audience.
4 ... a time of radical change Disruption Technologies Markets and economies Political environment Culture The house is on fire. John Barth, PRX
5 ... a time of radical change Destabilization of self-perception Expectations Relationships NPR wants to sleep with other people. New Realities Forum
6 We are encountering some turbulence.
7 Loyalty in listening Of listeners in a given station s weekly cumulative audience who are listening to the radio, what percentage are tuned to that station at any given time
8 Loyalty: How Well a Station Serves Its Own Audience Radio Off
9 Loyalty: How Well a Station Serves Its Own Audience Radio Off WXYZ
10 Loyalty: How Well a Station Serves Its Own Audience Radio Off WXYZ 41% of Listening
11 Loyalty in listening We have been gaining listening at other stations expense for years Now they are gaining listeners from us
12 50% 45% Loyalty of Public Radio s Listeners (Percent of all Listener-Hours to Radio per Year) Public Radio s Arbitron Diary Database to Other FMs 40% 35% to Public Radio Stations 30% 25% 20% 15% to Other AMs 10% 5% 0% to XM & Sirius Channels Source: Audience 2010
13 Loyalty to Public Radio Programming Public Radio s Arbitron Diary Database Network News-Information-Entertainment Network Music Local Music Local News-Information-Entertainment Source: Audience 2010
14 Loyalty in listening When you lose share, it doesn t disappear What did they do to get better? Did we do something to get worse?
15 Problems at the core Almost all the recent loss in listening was by core listeners The two programs in which public radio invests the most Morning Edition and All Things Considered lost 81 million listener hours from 2004 to 2005; that s 30% of the total
16 An inconvenient truth Almost all the recent loss in listening was by core listeners The two programs in which public radio invests the most Morning Edition and All Things Considered lost 81 million listener hours from 2004 to 2005; that s 30% of the total
17 Loyalty in giving Change in listening loyalty is echoed in giving Among 58 stations using Target Analysis, renewal of support down in every category format, original source of gift, years of giving, amount of last gift
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20 Still moving forward financially Listener support reached its highest level ever in FY % increase in net listener support after adjusting for inflation Net per listener hour at all time high, up 4% from 2004 Cost of raising a dollar up a penny to 35
21 Public Radio's Listener Support Adjusted for Inflation (2005 Dollars) Millions Source: CPB: Annual F inancia l Reports Sta tion Resource G roup
22 Public Radio's Development Expenses Adjusted for Inflation (2005 Dolla rs) In dividual fun drais ing Underwriting and grants 60 Millions Source: CPB: Annu al Financial Reports
23 Public Radio's Net Listener Support Adjusted for Inflation (2005 Dollars) Gross Net Millions Source: CPB: Annual F inancia l Reports Sta tion Resource G roup
24 Public Radio's Net Listener Support per Listener Hour Adjusted for Inflation (2005 Dollars) Cents Source: CPB: Annual F inancia l Reports, Arbitron S pring Na tionwi de, RRC Sta tion Resource G roup
25 Still moving forward financially Underwriting up significantly Net revenue grew by 9% Cost of fundraising held steady Net per listener hour up 11%, closing in on 2000 boom record
26 Public Radio's Net Underwriting Support After Cost of Fundraisi ng, Adjusted for Inflation (2005 Dollars) Gross 125 Net Millions Source: CPB: Annual F inancia l Reports Sta tion Resource G roup
27 Net Underwriting Support pe r Liste ner Hour After Cost of Fundraisi ng, Adjusted for Inflation (2005 Dollars) Cents Source: CPB: Annual F inancia l Reports, Arbitron S pring Na tionwi de, RRC Sta tion Resource G roup
28 Net Listener Support and Underwriting After Cost of Fundraisi ng, Adjusted for Inflation (2005 Dollars) Underwr iting Listener Support Millions Source: CPB: Annual F inancia l Reports, Arbitron N ationwide Sta tion Resource G roup
29 Change in Net Listener Support and Underwriting After Cost of Fundraisi ng, Adjusted for Inflation (2005 Dollars) 24 Amount Percent 12% 20 10% 16 8% Millions % 4% 4 2% % Source: CPB: Annual F inancia l Reports Sta tion Resource G roup
30 The evolving mix Community-based fundraising led our growth as institutional and governmental support stayed flat or sagged. Larger gifts are making up for lower renewals. Rapid growth in underwriting accounts for most of the new dollars.
31 Public Radio's Major Gift Support After Cost of Fundraisi ng, Adjusted for Inflation (2005 Dollars) Millions Source: CPB: Annual F inancia l Reports Sta tion Resource G roup
32 Net Listener Support per Listener Hour Adjusted for Inflation (2004 Dollars) 2.0 Cents All CPB Stations AAA (4) Cla ssical (18) Jazz (18) News (27) Source: CPB: Annual F inancia l Reports Sta tion Resource G roup
33 Net Underwriting per Listener Hour Adjusted for Inflation (2004 Dollars) 2.0 Cents All CPB Stations AAA (4) Cla ssical (18) Jazz (18) News (27) Source: CPB: Annual F inancia l Reports Sta tion Resource G roup
34 Speaking of an evolving mix... True of false: Baby Boomers are the heart of the public radio audience. True or false: Public radio has a graying audience and fails to reach younger listeners. Fact: GenXs and GenYs are public radio s fastest growing segment and are likely to be the largest portion of our audience within five years.
35 12 Public Radio Listeners (Cume Persons per Week, in Millions) Public Radio s Arbitron Diary Database 10 8 Boomers Gens X&Y 6 4 Silents 2 Matures Source: Audience 2010
36 Loyalty to Public Radio Public Radio s Arbitron Diary Database 60% 50% 40% 30% Matures 20% 10% Baby Boomers Generations X&Y Silents 0% Source: Audience 2010
37 Placing bets on the future Multiple initiatives for which both service outcomes and sustainability are unclear HD radio Digital distribution Local news and information Overall capacity Nature of the news (i.e. Public Insight Journalism)
38 Strategic choices Long-term position as public media institutions Preserving and growing the substantial investments that don t come from listener support and underwriting Distinctive identity and close connection to community will eventually pay off in public support
39 Where We Are Going Significant institutions with important and expanding roles in the civic and cultural lives of our communities
40 Enduring power of broadcast Core of service for years to come Universal free access Tens of millions in the audience More service than all other audio channels put together Economic engine of the field Connection to communities Infrastructure already in place
41 Build on broadcast assets Discipline and focus to preserve and strengthen performance of the current system Opportunities for growth across all measures: stations, audience, support, and trust
42 Embrace the new Integrate broadcast with an array of emerging platforms and channels to deepen and broaden our services and our communities of users More content More user control More interaction with and among individuals and groups More connections to communities
43 Push and Pull Expanding bandwidth, computer power, storage, and connectivity support an expanding portfolio of services Push: one-to-many driven by the presenter Pull: many-to-one driven by the user Not either/or it s both
44 A larger role Strategic position: trusted and sophisticated producers, selectors, and context setters for content of high quality and depth Build out capacities as authenticators and recommenders in an interactive community Leverage trust and reach to convene on the civic and cultural issues and interests of our time
45 Core Franchise Trust Broadcasting AM FM Create & Present Authenticate & Recommend Connect & Convene More Push Streaming Satellite HD Pull Archives Downloads Podcasts Search
46 ... in a time of radical change PRIMA September 2006
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