Report on the NPR AREPS Meeting, March 2003
NPR staff and managers engaged in a lengthy week of meetings March 3 – 7. The two-day AREPS (authorized representatives) meeting was followed by Capitol Hill Day on Wednesday March 5th, concluding with a two day NPR Board meeting on Thursday and Friday. By the end of the intensive, grueling week prizes could have been handed out to the last ones standing. Here’s a report to Western States Public Radio managers. Rather than addressing the week chronologically, here is a report on various significant subjects that emerged over the course of the week.
NPR Annual Membership Meeting
One hundred of the 272 Authorized Representatives attended the AREPS meeting. One immediate consequence is that for perhaps the first time ever there was not a quorum at the NPR Annual Meeting that historically takes place at the Public Radio Conference. So there were no resolutions considered. Fifty NPR staff members participated in AREPS and there was consistently good interaction between stations and the network.
At the NPR annual meeting Kevin Klose said, among other statements, “crisis is our call to action,” “our audience is deeper and broader than before with Morning Edition and All Things Considered radio’s 2nd and 3rd most listened to shows,” and of special interest to WSPR stations – “We will serve Western stations in new ways with the West Coast Production Center.” “We’re treating breaking news with great focus.”
NPR’s audited FY 02 financial statement reveals some disturbing numbers. Time magazine might have checked NPR’s books before writing the “National Prosperous Radio” article.
* NPR’s FY 02 loss from operations was $7.1 million vs. a gain of $4.8 million in FY 01. FY 02 was the first time in six years (since 1996) that expenses exceeded revenues. NPR tapped its reserves in 02 to fund 9/11 coverage (estimated $1.6 million) and to make up for shortfalls in underwriting revenue.
* There was a $9 million decrease in grants and (underwriting) contributions from the previous year. Corporate sponsorship fell from $28.8 million (01) to $21.3 million (02.)
* Programming fee revenues (money from stations) increased $2.4 million in FY 01. Station programming fees represent 50% of NPR’s revenue projections in FY 03.
NPR staff (VP Finance Jim Elder and VP Development Barbara Hall) are optimistic for FY 03. Elder says “We’re tracking positively with financial projections. The environment remains challenging including the cost of war coverage and health and insurance benefit costs.” Elder says NPR’s FY 03 financial goal is to replenish the organization’s reserves. Extensive information on NPR’s financial position is detailed in NPR’s IRS Form 990 for calendar year 2000 which has recently been posted on www.guidestar.org. It discloses upper management staff salaries
NPR announced four “key hires” during the week –
* Bill (not the Rolling Stones’ bassist) Wyman– Assistant Managing Editor for Arts.
* Walt Swanson – Diversity Manager
* Michael Ricksen – VP National Affairs. Succeeds Kathy Dole, previously worked for Harris Corporation (transmitters.)
* Rodney Huey – VP Corporate Communications. Succeeds Celeste James, previously worked for Seigfried and Roy and Ringling Barnum Bailey Circus by fending off the barbs from People for the Ethical Treatment of Animals.
One pending assignment not announced during the meetings is the host of the new Midday Show originating from the West Coast Production Center. Suffice it to say that he will take us on daily radio expeditions. Programming VP Jay Kernis has reportedly lured former NPR Producer Steve Proffitt back to the fold to produce the show. It will debut early summer on a dozen piloting stations. The intent is develop a one-hour, midday tentpole with shorter NPR features. According to Kernis “Yes ‘they want their NPR’ and that means the newsmagazines but they are very busy …They don’t have time for long interviews, pieces or documentaries. They probably don’t have an hour to spend with us but when they tune in they want to have their NPR News experience…One remarkable host will be surrounded by a regular family of frequently appearing correspondents and regularly-scheduled and diverse contributors.”
Yet another pending assignment announced by NPR –a correspondent position in Denver will be created “to bolster our coverage of the interior West.” This would be the first time since Mark Roberts that an NPR reporter has been posted in Denver.
AREPS Meeting
At the AREPS meeting the agenda was structured so that the three priorities identified at last year’s meeting could be further advanced. Station managers and NPR spent time in groups brainstorming on tactics that would best help us realize the priorities. We voted within the groups. Then managers identified and ranked the priorities.
The three main priorities are:
* Signal / Service Expansion
* Strategic Promotion
* Digital Transition
Signal / Service Expansion has also been expressed as “pursue new distribution channels.” In breakout sessions participants discussed:
* Obstacles that limit expansion.
* How can the system identify opportunities such as vulnerable AM and NCE stations.
* What are the fairness or confidentiality guidelines that guide NPR in assisting competing public stations?
* What station partnership models can we explore?
Outcome: AREPS identified three priorities for signal / service expansion-
* Establish permanent, centralized, engineering & legal system to both identify newly available frequencies and track and report commercial and non-commercial distressed frequencies for potential partnership/acquisition.
* Stations and NPR create a toolkit for business plan development, addressing ROI, funding and best case studies.
* Identify unserved and underserved geographic areas to position all stations within the affected region to prepare applications.
Verbatims:
* “Is 8 to 9 percent of America listening really public radio? We want to be on every platform in every place.” - John Schwartz / Wyoming Public Radio
* “You can’t do very much community building if you don’t leave your own house.” - Caryn Mathes/WDET
Discussion: The specter of KQED/San Francisco’s recent acquisition of a Sacramento FM frequency hangs over this priority. Capital Public Radio in Sacramento (not to be confused with Colorado-based Public Radio Capital) is not happy about KQED’s pending program duplication and competition. Nor reportedly is NPR management and CPB policymakers. Congress has long been concerned about PBS overlap stations that offer similar programming. Some have problems justifying funding duplication. Lawmakers have made an issue of Washington DC public radio stations WAMU and WETA carrying similar schedules particularly during highest profile morning drive. Proponents of multiple stations in a market cite the Station Resource Groups’ analysis that shows more public radio stations in a market create greater aggregate public radio listening.
NPR is sensitive to the issue and has conducted but not yet released an analysis of programming and audience duplication in the Top 25 markets. Key findings: NPR found the majority of public radio programming is not duplicated and that there is no correlation between the amount of duplicated programming and the amount of duplicated audience. Those concerned about duplication point out that signal expansion inherently favors major market stations that have extensive financial reserves and can expand into medium or small markets where frequencies are available or more affordable. Press reports about KQED’s Sacramento acquisition noted that public radio stations are now being pitted against each other, which is hardly news to many of us.
It is not clear how we as a system coordinate frequency efforts. The FCC’s just closed FM translator filing window was only discussed in the most confidential of terms. During AREP’s frequency acquisition discussion the concept of “rules of engagement” among stations was brought up and seemed to go nowhere. One GM who has been active in frequency acquisition dismissed the possibility of defining public radio “rules of engagement.” The marketplace will mediate. NPR has long had a policy of not intervening in conflicts between stations.
An underlying assumption of the signal/service expansion priority is that multiple programming streams will emerge so that stations will not feel compelled to carry proven moneymaker programs such as ME and ATC. One perspective says that differentiation of programming streams is most feasible and likely in markets where there is concentrated public radio ownership.
NPR is coordinating the ACORN strategy (Acquire, Convert, Operational Readiness, Now!) which has the goal of expanding the network by 2010 of over 1,000 NPR Stations (presently over 700) and adding 5-10 million new public radio listeners. Headed by NPR VP of Engineering and Operations Mike Starling, ACORN issued a comprehensive policy paper that will be circulated to all WSPR stations.
The second AREPS priority Strategic Promotion a/k/a Aggressively Build Audience for existing program services, is less controversial or problematic. In the AREPS breakout sessions we discussed:
* What listening and fundraising growth can be we achieve if NPR and stations together pursue audience building strategies highly focused on listener needs?
Outcome: AREPS identified three priorities for strategic promotion –
* Create continuous, crisp promotion and updates on news info horizontally and vertically. Tell listeners what’s best, what’s next, coordinate national and local efforts to increase and improve forward promotion.
* Develop off-air promotion, including national and/or cross-media partnerships, supported by ads, publicity, online, e-marketing and database techniques.
Discussion: Greater detail on this priority is in a report entitled “Preliminary Public Radio Audience Building Initiative” which will be circulated to all WSPR stations. NPR is initially placing most of its emphasis on on-air rather than off-air promotion because it is significantly less expensive. With effective on-air promotion the system can anticipate Average Quarter Hour growth resulting from longer Time Spent Listening and more frequent tune-in occasions. Heavier use brings increased loyalty, larger market share and greater likelihood of financial support. A station pilot project is moving into a second phase during the Spring 03 Arbitron sweeps. Among NPR’s actions that have resulted from the group’s input – ATC promos voiced by the Talk of the Nation host and harder news promos.
The critical, looming question for on-air promotion is whether Morning Edition and All Things Considered will start actively cross promoting so that, for example, Bob Edwards tags a morning setup piece with copy urging listeners to tune in that evening for a followup on ATC. That promotion strategy would benefit the vast majority of NPR stations that carry both tentpoles but leave a small number of stations out in the cold.
Off-air promotion can create wider public service or cume building. It’s an expensive endeavor and there are still echoes of David Giovonnoni’s 1988 twiddling and diddling analysis that endure. Giovononni argued that research shows listeners find their radio station of choice by twiddling their dial (or scanning) and that money spent to influence or diddle with listener behavior is wasted. He argues that commercial radio billboards and TV spots are largely intended to create top of mind awareness among those who already use the station.
There was vigorous discussion on how to most effective promote continued, ongoing public radio use to fringe listeners who tune-in during peak usage times such as 9/11 or the looming war. Everyone agreed that it must be approached with tact but does present an audience building opportunity. The NPR audience building initiative has the goal of growing national audience by 9% a year to 29 million cume by Spring 2008.
Digital Transition was not identified as a distinct priority in the 2002 AREPS meeting but rapid developments have pushed it into the forefront. Considerations include:
* Advance the rapid development of secondary audio capability.
* Seek funding and support for new High Definition radio products and services from funding sources and manufacturers.
Discussion – Secondary audio capability was the hot technological topic of the AREPS meeting. Skip Pizzi, who has been an IBOC/HD skeptic, says “NPR’s bold move to add secondary audio might drive consumer demand for HD receivers.” Phase one IBOC calls for simulcast-only digital capability. Secondary audio could double the number of radio stations available to the public by creating digital-only second channels. NPR is pushing for adoption of this technology in a second IBOC phase although NAB and commercial broadcasters may be opposed to its implementation because it would increase both competition and costs. There is interest on Capitol Hill where legislators would favor expanded public radio services to unserved audiences with, for example, bilingual public radio stations in southwestern cities. NPR launched the Tomorrow Radio project with manufacturers and Long Beach, CA public radio station KKJZ to test secondary audio capability and feasibility. The audio quality of secondary audio has increased as designers enhance the algorithms. As Pizzi says “it’s too bad this capability wasn’t in the initial design of HD radio.”
AREPS also considered three “Emerging Topics” - Revenue Development, Talent/Staff Development and Representation.
I participated in the representation sessions which ushered in the new Mike Ricksen era in NPR National Affairs, who has the goal of building a grassroots advocacy network for public radio. NPR staff discussed representational issues currently before us including: appropriations (future funding, CPB, PTFP, HD Radio); digital transition; spectrum acquisition; copywrite; music rights and licensing; and reauthorization. NPR’s summary of pending regulatory issues will be circulated to WSPR stations.
* Last year WSPR issued a pre-AREPS message that said “NPR’s method of identifying pending regulatory issues of importance to member stations and the posture NPR should adopt on those issues remains unclear.” We recommended creation of a Representation Committee of NPR Board and non-Board members, presumably with some skilled Capitol Hill insiders. No action taken yet.
* Reference was made to the successful campaign public broadcasting waged against Newt Gingrich’s proposal to zero out CPB in 1994. Much was made of a recent quote from Newt that said (paraphrased) “On my way to work I listen to NPR and appreciate NPR. My conclusion – NPR is a lot less to the Left than 20 years ago or I’ve mellowed or some combination of the two.”
* House Commerce Committee Chair Billy Tauzin will reportedly convene CPB reauthorization hearings sometime this year. CPB’s reauthorization has expired which leaves annual appropriations in annual doubt. Authorizing legislation allows CPB to exist and broadly defines the purposes for which federal funds may be appropriated. The reauthorization process provides an opportunity to examine the past and plan for the future of CPB.
The Public Radio Conference (New Orleans May 14-18) with the theme “Connect Expand Strengthen” will be the last PRC. NPR staff is recrafting the meeting into AREPS-style breakout sessions that address public radio system-wide challenges, including:
* Programming and a Changing America (diversification, localization)
* Longterm Strategic Planning Issues for the System (revenue summit)
* Financial Planning Practical Issues (capital planning)
* Local and National Talent and Staff Training
* Online/Technology
* Community Relations and Governance (managing university licensee relationships, building effective boards
* Frequency Acquisition & Preservation
An informal survey of WSPR managers revealed that only a handful are committed to attending the PRC. It is uncertain whether WSPR will meet at the PRC. WSPR managers at AREPS discussed meeting options. We will meet in Phoenix sometime in the Fall, likely November, but would like to have another venue to replace our annual PRC meeting. Options include:
* AREPS in Washington – precludes participation from non-NPR WSPR stations.
* California Public Radio – meets twice a year, once in Palm Springs (January/February) and again in San Luis Obispo (mid-summer.) SLO was the site of the “Super Regional two years ago.
* PRPD – some believe that the program director’s meeting will replace the PRC as the primary public radio gathering. A variation of this option is to piggyback WSPR on national meetings held in our region (e.g. – PRDMC in Snowbird, Utah; PBMA in Phoenix.) There is reluctance to adopt this option because it results in lengthy, prolonged public radio meeting marathons.
* Regardless, WSPR resolves to hold at least one annual meeting at an airport hub hotel.
*NFCB (National Federation of Community Broadcasters) is also investigating venues for replacing the integrating role of the PRC – creating a place where public broadcasters of all types and orientations can cross-pollinate. To that end, NFCB is interested in regionals such as WSPR incorporating into our fold small community licensees and Native American stations.
According to National Affairs, NPR is contending with three controversial issues:
* NPR management has been working overtime to fend off criticism from pro-Israeli CAMERA (Committee for Accuracy in Middle East Reporting in America) with a listening tour by Klose and News Director Bruce Drake to the Mideast, a townhall meeting in Boston, and making available online all NPR Mideast transcripts . CAMERA call NPR "the taxpayer-funded radio network known for its flagrant pro-Palestinian bias.” NPR says “nothing seems to satisfy the critics.”
* Bias against the Christian Right. NPR has twice apologized for broadcasting a misleading report linking the Traditional Values Coalition with anthrax. The apology was accepted and NPR considers the issue closed. Then KSUT in Durango pulled a dentist’s underwriting message that read "Gently Restoring the Health God Created." AFA Chairman responded – “Every Christian business owner in America should immediately pull his or her support from the intolerant NPR” and organized their troops to bombard NPR and KSUT with 5,000 critical e-mails.
* Liberal bias – a recurring theme. NPR says that it is “without foundation,” that they work hard to provide journalistic balance, that balance is reflected in the NPR audience which “reflects the American polity.”
The University-Station Alliance (U:SA) met at AREPS. An informal poll of stations in attendance who are presumably better off financially than those unable to attend AREPS because of budget constraints showed:
* 57% had budget cuts in FY 03 ranging from 1% to 30%. The same stations expect FY 04 cuts.
* 47% had FY 03 rescissions ranging from 2% to 50%.
* 83% are licensed to public universities that have appropriations cutbacks this year and next year.
US:A has solicited cooperation from regional organizations to advance issues pertinent to university-licensed stations. PRIMA has adopted Benchmarking of university licensees (How much money do individual universities appropriate? Who do managers report to?) WSPR Board met in an impromptu caucus and announced that we will collaborate with NPR Ombudsman in addressing Editorial Integrity.
NPR Pricing: Amidst all the issues elaborated above, there has been precious little discussion of NPR pricing. NPR VP Dana Rehm quipped she “almost forgot about that.” She is “surprised by the lack of comment on the 04 plan” but says “there is wide support for NPR News coverage [among stations] and desire for support fair, reasonable and equitable pricing.” Non-news magazine pricing tiers will be recalculated to more equitably shift costs.
NPR Board news – Former Minnesota Republican congressman Vin Weber resigned from the Board. With John Keiser cycling off the Board this year, three of five public seats will soon be vacant. The Governance Committee (formerly Directors) will soon request candidates from stations…WSPR has no representation on the NPR Board although Mike Lazar is an associate WSPR member…NPR’s Distribution/Interconnect Committee approved a PRI request that NPR continue to discount its channel fees. According to PRI it was done “in the interest of good customer relations with their single largest customer.” … The focus of the July NPR Board meeting will be strategic planning
That‘s just some of what transpired during an issue packed public radio week in Washington. Best regards to managers and your stations.
Respectfully submitted –
John Stark, WSPR President March 18, 2003