We’re sending the wrong message with premiums

No, I’m not going to preach that public TV should stop using premiums to attract and upgrade members. Premiums are too effective to give up on them. But if we misuse them, they are also quite effective at undercutting the long-term relationships we want and need with viewers and members. As a fundraiser who has worked at stations as well as at PBS, I’m concerned that the way many stations now use premiums during on-air drives will make it increasingly difficult for them to secure renewals, annual upgrades, and additional gifts from members acquired using premiums.

And I’m even more concerned about what premium-driven pledging means to our existing base of the most loyal donors. In our move to “transactional marketing,” some have ignored an obvious fact — television is a mass medium.

How many listeners donate? One in 12 or one in three?

Which is it? Is the conventional wisdom correct — that one out of every 10 or 12 public radio listeners is a station member? Or is it the more encouraging one-in-three, as found by the Audience 98 research project?The seemingly conflicting estimates flew past each other at last month’s Public Radio Development/Marketing Conference in Washington, D.C., without much elucidation. Now comes an attempt at elucidation. The leading proponents of the 1:12 ratio, Oregon-based fundraising consultants Lewis-Kennedy Associates, reported at the conference that an average of 8.3 percent of stations’ weekly cume listeners can be found as donors in the membership files.

Seven years in a ‘dynamic environment’

Cecily Truett and Larry Lancit rolled the dice. In the spring of 1991, they took their production company and its best known product, and laid them at the feet of GKN Securities Corp., a small investment firm, which organized the initial public offering of their production company. By then, the Lancits had filled a trophy case with awards as producers of Reading Rainbow. But Lancit Media Productions’ earnings were barely enough to scrape by. It was certainly not enough to expand.

FCC to WTTW: too much of that funky stuff

WTTW and PBS say they’re baffled by the FCC’s proposal to fine the Chicago station $5,000 for airing four underwriting spots, including one that aired nationally on Wall Street Week. The commission sent a “notice of apparent liability” to WTTW [text of notice] earlier this month, saying that spots aired in November 1996 for Zenith, Amoco, Prudential Securities and Sun America insurance violate FCC rules against advertisements for for-profit companies. Under the rules, public broadcasters can air credits for corporate underwriting but only for the purpose of identifying backers. The credits are not supposed to promote their businesses. Specifically off-limits are comparative and qualitative descriptions, price information, calls to action and inducements to buy.

FCC notice to WTTW of fines for underwriting violations, 1997

In 1997, the FCC fined Chicago public TV station WTTW for violating commission standards for underwriting credits (Current coverage). More than two years later, the commission found that three of the four contested credits were permissible, and reduced the fine (text of March 2000 order). Federal Communications Commission Washington, D.C. 20554
In reply refer to: 1800C1-KMS 97040529
December 2, 1997
Released: December 3, 1997
CERTIFIED MAIL — RETURN RECEIPT REQUESTED

Window to the World Communications, Inc.
Licensee, Station WTTW(TV)
5400 North St. Louis Ave. Chicago, IL 60625

Dear Licensee:

This letter constitutes a NOTICE OF APPARENT LIABILITY FOR A FORFEITURE pursuant to Section 503(b) of the Communications Act of 1934, as amended (the “Act”), for violations of 47 U.S.C. Section 399B and Section 73.621(e) of the Commission’s Rules.

Let’s do it: PTV Weekend is worth trying

A debate on the proposed PTV Weekend experiment for two-nights-a-week advertising on public TV
For the plan, below: Mike Hardgrove, president of public TV station KETC in St. Louis. Against the plan:  Fred Esplin of KUED in Salt Lake City. What could have motivated Larry Grossman, a man with unimpeachable credentials in public television, to propose a programming scheme for the industry based on that most despised of funding sources advertising? Could it be that he acquired, as a result of his tenure as president of NBC News, a disregard for the dangers of unbridled commercialism?

Critics arise as PTV Weekend plan gets some ink

Lawrence Grossman’s PTV Weekend proposal for experimentation with a two-night commercial network for public TV stations — described for the first time in major newspapers this month — drew opposition and questions from several well-placed individuals. FCC Chairman Reed Hundt criticized the plan June 9 at the National Press Club. The proposed experiment with advertising on public TV is “an idea we ought to just reject out of hand,” he said. “Once you make public broadcasting commercial, you’ve lost it.” Bill Baker, president of New York’s WNET, a station whose market would be important to the proposed advertiser-supported programming, said PTV Weekend is “a wrong-headed concept at the wrong time,” which “could be very deleterious to the whole concept of public television.”

Let’s not do it: PTV Weekend is a bad idea

A debate on the proposed PTV Weekend experiment for two-nights-a-week advertising on public TV
Against the plan, below: Fred Esplin, general manager of KUED in Salt Lake City. For the plan: Mike Hardgrove, president of public TV station KETC in St. Louis. If we take up Larry Grossman’s proposal for PTV Weekend, we will do to ourselves what Newt Gingrich tried but failed to do: commercialize public television. This is a bad idea that won’t work — and shouldn’t.

PTV Weekend: Notes on Questions, Concerns, Strengths and Benefits

James Fellows, long active in public TV’s national leadership and founder of Current, analyzed the PTV Weekend proposal, when it was published in June 1997, on behalf of the Hartford Gunn Institute, a fledgling organization he was trying to launch as a planning agency for the public TV system. See also the PTV Weekend proposal and Current’s coverage of it. The Hartford Gunn Institute is an independent entity that is interested in analyzing and encouraging promising opportunities in public broadcasting and telecommunications. It has no organizational or financial interest in the outcome of the research work which it undertakes. At the request of Lawrence K. Grossman, former President of the Public Broadcasting Service, The Hartford Gunn Institute was commissioned to explore with key leaders in public television their questions and concerns concerning the strengths and benefits of what has come to be called PTV WEEKEND.

‘The question of length is really settled’

A movement among big-market stations to accept 30-second underwriting spots is turning up the heat on PBS to resolve longstanding discrepancies between national underwriting policies and more permissive practices at local stations. Some say six of the top ten stations are accepting the longer spots; others count 19 of the top 20. Among the stations now accepting 30-second underwriting messages are WNET, New York; KCET, Los Angeles; KQED, San Francisco; WCET, Cincinnati; WTVS, Detroit, and KRMA, Denver. The national underwriting that directly supports production of national programs has slipped in recent years, while local stations’ spot sales have grown–probably surpassing the total for national underwriting in recent years. “We can reach 80 percent of the U.S. population with 30-second messages on public television today,” said Keith Thompson, president of Public Broadcast Marketing, a firm that specializes in spot sales on public radio and TV stations.

Station coffers gain from advances in the pledging arts

For the second year in a row, spring pledge revenues are up for public broadcasting stations around the country.The gains are a welcome relief to fundraisers throughout the system, who face the challenge of improving revenues from all other sources as federal funding declines. Development professionals from both television and radio say their recent successes are largely due to good programming and the increasing sophistication with which stations conduct on-air campaigns.Propelled in part by a sleeper special “Les Miserables in Concert,” public TV’s drive set a dramatic new record of more than $50 million raised nationally. 1992
1994
1996

Dollars pledged
$39.5 million
$38.3 million
$50.2 million

Number of pledges
598,150
525,082
603,724

Average pledge
$66.14
$73.03
$83.14

Break minutes
291,374
331.357
340,795

Dollars per minute
$135.78
$115.73
$147.28

Stations reporting
133
135
155

Source: PBS

 

Tallies aren’t available for public radio, but stations generally report results that kept pace with or bested the inflation rate. While many stations set new records, the gains were mostly modest compared to last year’s, when congressional threats to public broadcasting’s federal funding spurred donations. Big stations around the country set aggressive goals based on last year’s results, and fell short.

Citizens’ group organizes to back full CPB funding

A professional campaign firm has begun setting up a Citizens’ Committee for Public Broadcasting to coordinate grassroots support for “full funding” of CPB. Proposed and organized by a New York consumer rights lawyer, Donald Ross, the committee has startup funding from about five major public TV stations, Ross says. The initiative is the latest in a long line of citizen interventions to support or protect public broadcasting. Separate plans for a big-name commission of prominent citizens to resolve “serious issues” in the field’s future were announced by CPB Chairman Henry Cauthen two weeks ago, but have been delayed, according to CPB. The citizen’s committee’s handful of staffers, meanwhile, is starting to recruit field activists and organizers out of the downtown Washington branch office of Ross’s firm, M&R Strategic Services.

Duggan maps path to shared gains for system

PBS put forth a new framework for thinking about its relationship with member stations last week, asserting that they’re all in the same boat, endangered by common competitors and capable of saving themselves through collective action through PBS. For PBS, the timing of the Fall Planning Meeting could hardly have been better, since many station executives were favorably impressed with the recent $75 million Reader’s Digest Association program deal. President Ervin Duggan laid out a “station equity model” that will guide the network’s actions and pledged that PBS will add 50 percent to the funds wielded by its chief program executive by the year 2000 — an increase from $110 million to $160 million. The Reader’s Digest commitment amounts to one-quarter of that gain, he said. The station equity model calls for “pointed, strategic, coherent” management by PBS of the system’s brand, program rights and other national assets of the stations, Duggan said in a Current interview after the Nov.

Public ranks pubcasting high in value per dollar

In a Roper Poll taken March 18-25, Americans ranked public TV and public radio among the services that provide the best value for the tax dollar. Only military defense of the country and the police had higher percentages of the sample calling them an “excellent value” or a “good value.” Highways, public schools, environmental protection and the court system ranked lower. The pollsters asked: “Here is a list of some different services that the government provides using tax dollars it collects from the public. Thinking of what you get for what you pay in taxes, would you read down that list and for each one tell me whether you feel you get excellent value for the dollar, or good value, or only fair value for the dollar, or poor value for the dollar?” These were the results:

Rank
Services provided with tax dollars
Percent excellent or good value

1
Military defense of the country
60

2
Police and law enforcement agencies
59

3
Public TV broadcasting
57

4
Public radio broadcasting
53

5
Medical, technological,d other research
52

6
Overseeing the safety of food products
50

7
The space program
49

8
Overseeing safety of prescription drugs
49

9
Highways, roads and bridges
45

10
Public schools
41

11
Environmental protection
41

12
Public transportation
40

13
Sponsorship of the arts
39

14
Overseeing soundness of financial institutions
35

15
The courts
33

16
International intelligence gathering
31

17
Contributions to the United Nations
30

18
Social welfare programs
28

 

“Quite frankly, I was really surprised,” said CPB researcher Janice Jones.

The plans that went to Congress

Here are brutally shortened summaries of proposals in the two funding plans that went to Congress in spring 1995: “Common Sense for the Future” from CPB, and “The Road to Self-Sufficiency” from the quartet of the public stations’ major national organizations, APTS, NPR, PBS and PRI. CPB
APTS, NPR,
PBS and PRI

Trust fund

Recommends a trust fund and says it has examined options for financing it, but doesn’t name them. “We look forward to exploring these and any other alternatives Congress may suggest to make such a trust fund viable.” A temporary financing mechanism would build up trust fund until it becomes large enough to pay out sufficient annual interest. As payout grows, federal appropriations could decline.

Two separate funding plans go up to the Hill

Pubcasters have given Congress two separate proposals for future funding of the field: one from CPB and the other a joint effort backed by APTS, NPR, PBS and Public Radio International. [Comparative summary.]

Both proposals took a dim view of the revenue potential of on-air advertising and placed greater hope in further enhancement of underwriting. But they diverged on several matters, with CPB detailing cost-saving proposals that will be controversial among some stations. Congress makes moderate cuts in CPB appropriations already passed
A House-Senate conference committee answered two of the questions hanging over public broadcasting: $275 million next year and $260 million the year after. For comparison, CPB funding this year is $285.6 million.

Local talks and new national rules aim to end wasteful overlap of stations

From here on out, it will be a lot harder to volunteer a public broadcasting station into existence. For a quarter-century, you mainly needed an FCC license that nobody else had snapped up yet, plus a minimal bankroll to show you had local support, and you could lay claim on a small share of CPB’s federal appropriation. The ordeal of starting a station was itself a test of mettle, but the field had no self-imposed or government-imposed criteria to select licensees, or national plans for rational siting of stations for universal coverage of the population. It may soon have such rules. Battered by claims that they are fat and wasteful, and facing the loss of some or all of their federal aid, pubcasters are pursuing cost-saving pacts with colleagues in Louisville, Denver and elsewhere.

House leader demands a plan; Senate backs higher numbers

Having emerged from the first 100 days of the 104th Congress with most of its advance funding intact, public broadcasting is entering the most crucial stage in renegotiating its relationship with the lawmakers. Rep. Jack Fields (R-Tex.), chairman of the House telecommunications subcommittee, moved up the schedule for that stage in an April 5 meeting with top pubcasters, asking them to submit by the end of the month their plans for replacing the annual CPB appropriations that congressional Republicans want to eliminate. The Senate, meanwhile, declined to accept House leadership, voting April 6 to continue CPB funding at this year’s $285.6 million level for the next two years. CPB funding was one of the major sticking points that delayed final action on the Senate bill, as conservative Republicans sought bigger cuts and Democrats pushed for smaller ones. The legislation goes next to a House-Senate conference committee, which will have to hammer out substantial differences in the two chambers’ proposed cuts for CPB and other programs. (The conference will be scheduled after the House returns from recess May 1; the Senate returns a week earlier.)

While substantial CPB funding for fiscal years 1996 and 1997 seems likely, the big question is now whether the field will receive any federal aid at all in 1998 and beyond.

How much of the funding gap would individuals fill?

In this time of unprecedented threat to public broadcasting, people are responding with unprecedented generosity to station’s pleas for support. TV station WPBA in Atlanta beat its $75,000 pledging goal by 39 percent, with pitching help from hometown boy Newt Gingrich. The boon fell just short of doubling WPBA’s in-take during last year’s March drive — $42,000. If donations to the system expand permanently by 15 percent,  the increase would amount to about $58.5 million — one-fifth of this year’s federal appropriation to CPB. Pacifica station WBAI in New York broke a record for community radio stations with an $820,000 January drive.

‘Tell them Newt asked you to help’

Fundraising pitches by House Speaker Newt Gingrich drew unprecedented media coverage and helped to boost March pledge receipts at WPBA, Atlanta, home-town public TV station for the powerful Georgia Republican who has vowed to end federal aid for public broadcasting. Gingrich taped a series of spots urging national and local viewers to “open your wallets” and support public television. “Tell them Newt Gingrich asked you to help make sure that PBS stays on the air and Channel 30 stays strong because more than ever it’s going to need our support as individuals to make sure it has the funding it needs,” the congressman said in a self-scripted 45-second message for Atlanta viewers. Late last week, only a handful of stations elsewhere had begun to use national versions of the spots in their on-air campaigns. WCET, Cincinnati, reported that viewers had responded negatively to its use of the pitch.