Current (https://current.org/category/development/page/21/)
The bad news: Public radio is a small part of a rapidly expanding nonprofit sector. Competition with other nonprofits for mind-share and donor support will intensify. Moreover, public radio lacks the financial transparency that donors increasingly expect.
As different as they are, these public radio outposts share a carefully tuned appropriateness of structure. There’s the young two-transmitter operation on the Massachusetts shore. Dotted along Alaska’s southeastern panhandle, there are five little stations that survived the contraction of the state’s oil economy. And there are nearly 30 outlets of Minnesota Public Radio that connect small outstate burgs with the rich resources of a big state and the Twin Cities. Station operators say their structures handle functions locally that should be done locally, while relying on parent or sister stations to do other jobs that benefit from economies of scale.
A bill introduced in the House May 2 brings the DOIT proposal for a trust fund supporting digital educational content one step closer to “done it.” The legislation introduced by Rep. Ed Markey (D-Mass.) proposes to invest proceeds from spectrum auctions in a permanent trust fund for that purpose. Sen. Christopher Dodd (D-Conn.) is preparing a similar bill in the Senate, earmarking 50 percent of all future auction proceeds for such a fund. Markey’s Wireless Technology Investment and Digital Dividends Act (H.R. 4641) also provides for up to $300 million in funding for public broadcasting’s digital conversion. The bill looks very much like the trust fund proposed last April by the Digital Promise Project led by former PBS President Lawrence Grossman and ex-FCC Chairman Newton Minow.
The bond market is offering new capital financing options for public broadcasting this week with the expected sale of $6.5 million in tax-exempt bonds for Colorado Public Radio’s expansion. [After this article was published, the entire lot of bonds sold in one day at 5.8 percent.]
Other pubcasters will follow. Nashville Public Radio plans to sell about $3 million in bonds in March to cover purchase of a second station in town. And the new nonprofit Maryland Public Radio aims to finance the $5 million purchase of Baltimore’s WJHU. Pubcasters have 10 to 15 borrowings under review at George K. Baum & Co., the investment bank working closely with Public Radio Capital, a nonprofit that is shepherding potential borrowers into the bond market.
The campaign to throw Idaho Public Television out of the state budget seems to have run out of oomph. On Feb. 20 [2001], the legislature’s Joint Finance and Appropriations Committee okayed IPTV’s funding requests almost without change — without raising the privatization issue. And five days earlier, the state Board of Education, licensee of the state network, voted 5-2 to advise the legislature against privatization. “I am fairly certain the issue is dead for this year,” says Jennifer Gallagher Oxley, who reported on the struggle for Boise’s Idaho Statesman.
Thanks to financing from the new Public Radio Capital (PRC) fund, Colorado Public Radio just realized a long-standing goal—buying Denver AM station KVOD, which it plans to program with wall-to-wall classical music.
Idaho’s state legislature has imposed extraordinary restrictions on the state public TV network, in delayed reaction to its broadcast last September of the gay-friendly documentary “It’s Elementary: Talking About Gay Issues in School.” The state House of Representatives passed the restrictions March 27 [2000] by a vote of 50-16, as part of an appropriations bill that gives $2 million for DTV instead of the $3.9 million requested by the network. And the same legislation passed the state Senate April 4. It will order the State Board of Education, licensee of the network, to monitor “programs expected to be of a controversial nature,” and to reject any program that “promotes, supports or encourages the violation of Idaho criminal statutes.” In a state where sodomy is illegal, the bill could be interpreted as forbidding Idaho Public TV to rebroadcast “It’s Elementary,” a program about classroom treatment of the subject of homosexuality.
In March 2000, the FCC reduced its 1997 fine of public TV station WTTW, finding that three of the four underwriting credits at issue were permissible after all. The original fine was levied in December 1997. [Text of 1997 letter.]
Before the Federal Communications Commission Washington, D.C. 20554
In the Matter of Window to the World Communications, Inc., Licensee of Station WTTW(TV), Chicago, IL, Facility ID #10802
For a Forfeiture
File No. 97040529
FORFEITURE ORDER
Adopted: March 3, 2000 Released: March 6, 2000
By the Chief, Enforcement Bureau:
1. In this Order, we grant the request of Window to the World Communications, Inc. (“WTTW”), licensee of noncommercial television station WTTW(TV), Chicago, Illinois, for a reduction in the $5,000 forfeiture proposed in a Notice of Apparent Liability (“NAL”) issued for violation of the statutory prohibition against the broadcast of advertisements on noncommercial stations.
To continue receiving CPB aid, public stations must now certify that they don’t exchange member or donor names with political groups, or sell names to them, or buy names from them. “Our goal is to restore the public’s trust in the work public broadcasting does every day,” said CPB President Bob Coonrod. The new grant rule, issued July 30 [1999], responds to congressional condemnations of the mailing list dealings that apparently involved dozens of public TV and radio stations in recent years. A CPB survey of the 75 largest public TV stations found that 26 had exchanged member or donor lists with political groups and 33 had rented lists from political groups, Coonrod told Congress the week before. Current found that the major stations in the 10 top markets all said they had dealt in swapped or rented lists, though some did it quite infrequently [related story].
After stations’ list practices exploded as a political issue, an organization of public radio fundraisers, the Development Exchange, issued this advice written by the associate director of its Center for Membership Support. Comments
The value of members acquired by mail cannot be disputed. Members acquired by mail have better first-year and multi-year renewal rates than those members acquired by on-air or telemarketing. DEI continues to strongly recommend that stations develop and maintain aggressive direct mail donor acquisition campaigns as part of a balanced fundraising strategy. Despite the recent controversy surrounding list trades, do not stop trading your list.
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.
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.
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.
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.
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.
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?
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.”
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.
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.
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.