by Gordon Hastings
Anticipating the reduction or removal of government funding and the immediate need to find sources of replacement revenue, NPR and public broadcasting stations must petition the Federal Communications Commission to remove its current restrictions on underwriting and sponsorship announcements for public stations.
The FCC rules regarding non-commercial and educational stations state,
?Noncommercial and educational stations may acknowledge contributions over the air, but they may not broadcast commercials or otherwise promote the goods and services of for-profit donors or underwriters.? The elimination of this regulation will give public broadcasters greater latitude with which to replace the lost government income.
National and local public radio management can enhance income streams independent of government funding by maximizing the value of their audiences through increased unrestricted sponsorships. Because programming content is so compelling, audiences will continue to demand its availability and accept a transition to a greater presence of on-air sponsors if creatively presented in moderation and good taste. A strong argument can be made that sponsorships would be a better alternative for the audience than increasing listener on air fund raising campaigns.
Commercial radio broadcasters have created a large programming void that is being satisfied by public stations. As an example, according to the latest State of the Media report NPR weekly audience has grown more than 58% since 2000.
Consolidation during the past decade has changed the business model for commercial broadcasters. Many stations are no longer programmed locally and have reduced or eliminated their local news operations. In many cities and towns, local public stations now have larger staff commitments to local news reporting and feature programming than commercial stations.
Public radio broadcasting at both the national and local level has reacted to market changes with a wellspring of programming creativity, which is being embraced by listeners in growing numbers. Arbitron, the national research company that quantifies radio listening, reports that weekly listening to NPR programming exceeds 28 million individuals. This number does not include listeners to local public stations. Commercial radio, which built its success upon localism, is clearly being challenged in information and non-music entertainment programming.
Stations will continue to gain in audience primarily because there is substantially less news and long form programming competition from music dominated commercial radio. While there is abundant talk programming in the commercial sector, most successful national programs including Rush Limbaugh and Glen Beck are ideology driven. Ironically, ?ideology? has been a criticism of NPR in the debate over public funding.
Public broadcastings stations should be forewarned however, that commercial radio broadcasters are very nimble. If commercial radio stations witness a substantial continued migration of their music listeners to new electronic devices, those stations would view the success of the news, information and long form programming on public stations as an opportunity for themselves and make frequency space available as direct competitors.
Currently, NPR programs including Morning Edition, All Things Considered, Fresh Air and local public radio programs like The Brian Lehrer Show on WNYC in New York City or the Faith Middleton Show on Connecticut Public Broadcasting are unique to their respective markets. NPR and local public radio stations can monetize these valuable audiences individually and as an ad-hoc network of stations by creating a national marketing organization. According to the January 2011 Arbitron, WNYC AM-FM in New York City alone reaches 1,027,000 individuals weekly.
Today, the public radio-programming environment offers exclusive program branding opportunities for sponsors. Public radio is already allowing more enhanced underwriting sponsorships and a transition to greater commercial support is inevitable. Good management policy can prevent over commercialization and any encroachment upon good taste and editorial independence.
Technological advancements for public radio content including podcasts, websites and programming for mobile devices (Apps) can provide public broadcasting stations additional sponsor revenue potential without impacting on-air programming.
The future bodes well for NPR and local public radio operating under an independent, sustainable and predictable business model that supports and encourages monetizing the value of its audience. There is a strong marketing opportunity to communicate with national, regional and local businesses seeking brand association with excellent content. NPR and local stations need to place greater resources behind this effort. With good management, it can be accomplished in harmony with the mission of NPR, public stations and their audiences.
In the final analysis, public broadcasters may find sponsors easier and more reliable to work with than the government.
Gordon Hastings is President of ghhManagement and can be reached via e-mail HERE
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