Round Robin PresentationRound Robin Presentation

• October 2004

Dis

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Today’s discussionToday’s discussion

Primetime programming

• How can the audience principles be applied at your station?

• How would you prioritize programming needs?

Children’s programming

• What are the threats and opportunities facing children’s programming?

Local services

• What local services can strengthen public television’s future?

The NPS Value ChainThe NPS Value Chain

Programming strategy

Development / commissioning/ rights acquisition

Schedule planning funding allocation

Production / Initial fundraising

Later-stage fundraising/ sponsorship

Rights exploitation

Station promotion and distribution

Audience/ member research/ station input

Audience/ member research/ station input

Programming strategy

Strategy

Consumer Insight

(Qualitative)

Awareness, Attitudes &

Usage(Quantitative)

SegmentationAnalysis

Implications

Research PlanResearch Plan

Implications Strategic Considerations

Sept ‘03 – Jan Jan - May May – Fall ‘04

Consumer Insight

(Qualitative)

Awareness, Attitudes &

Usage(Quantitative)

SegmentationAnalysis

Implications

Research PlanResearch Plan

Implications Strategic Considerations

Sept ‘03 – Jan Jan - May May – Fall ‘04

Consumer Insight PhaseConsumer Insight Phase• Viewers lead full and busy lives

• Viewers convey enormous appreciation and respect for public television

• Viewers identified obstacles or barriers to enjoying PTV programming

Think

Feel DoViewer

A Holistic PerspectiveA Holistic Perspective

A pattern of thoughts, feelings, and behaviors important enough and consistent enough to serve as a

reliable guide

PrinciplePrinciple

QUALITY

TRUST

INTELLIGENC

E

BALANCE

UNIQ

UENESS

ENGAGEMENT

VARIETY

CONSISTENT VISIBLE

APPROACHABLE

FoundationalPrinciple

Supporting Principles

Overarching Principle

Illuminating Principles

Consumer Insight

(Qualitative)

Awareness, Attitudes &

Usage(Quantitative)

SegmentationAnalysis

Implications

Research PlanResearch Plan

Implications Strategic Considerations

Sept ‘03 – Jan Jan - May May – Fall ‘04

Fieldwork

1481 Interviews

627 Interviews

Telephone interviewsJanuary 30 - March 2, 2004

National Probability SampleRandom Digit Dial Adults 18+9% self-declared members

Pre-Identified Members Boston, Atlanta, St. LouisPortland, Phoenix

Awareness, Attitudes & Usage StudyAwareness, Attitudes & Usage Study

Giving Dimension to InsightGiving Dimension to Insight

Viewers lead full and busy lives

• Nearly two-thirds of primetime viewers say they often or occasionally find “there aren’t enough hours in the evening to get things done.”

Giving Dimension to InsightGiving Dimension to Insight

Viewers convey enormous appreciation and respect for public television

• Public television stations do better than viewers’ most-watched broadcast and cable stations in “respecting my intelligence,” “setting the standards for quality in television,” and “putting the viewer’s interests first.”

Giving Dimension to InsightGiving Dimension to Insight

Viewers identified obstacles or barriers to enjoying PTV programming

• Two thirds of those who watch PBS at least occasionally do not believe that public television presents its programming “according to a consistent schedule.” Ten percent volunteer that public television “has no schedule at all.”

Consumer Insight

(Qualitative)

Awareness, Attitudes &

Usage(Quantitative)

SegmentationAnalysis

Implications

Research PlanResearch Plan

Implications Strategic Considerations

Sept ‘03 – Jan Jan - May May – Fall ‘04

Segmentation Analysis of Awareness, Attitudes & Usage StudySegmentation Analysis of Awareness, Attitudes & Usage Study

• Methodology: Latent Class Modeling• No preconceived categories imposed in advance

• 51 variables used to generate the segments• Most predictive variables: time spent viewing PTV and affinity with PTV

HighHigh

PTV Attitudes

PTV

Usa

geHighHigh

LowLow

HighHigh

PTV Attitudes

PTV

Usa

geHighHigh

LowLow

Strategic ConsiderationsStrategic Considerations• Secure and Strengthen the Core

– Brand Defining Series– Drama

Strategic ConsiderationsStrategic Considerations• Focus on Targets of Opportunity

– Science and nature

Strategic ConsiderationsStrategic Considerations• Focus on Targets of Opportunity

– Keep the door open

Strategic ConsiderationsStrategic Considerations• Accessibility

– Consistency– Visibility– Approachability

HighHigh

PTV Attitudes

PTV

Usa

geHighHigh

LowLow

The NPS Value ChainThe NPS Value Chain

Programming strategy

Development / commissioning/ rights acquisition

Schedule planning funding allocation

Production / Initial fundraising

Later-stage fundraising/ sponsorship

Rights exploitation

Station promotion and distribution

Audience/ member research/ station input

Audience/ member research/ station input

Programming strategy

Strategy

Production

Fundraising

Distribution

Eva

luat

ion

For children’s educational & developmental needs1

Why is children’s television important to public television?Why is children’s television important to public television?

April 23, 2002 April 23, 2002

House Labor, Health and Human Services, Education Appropriations Committee Hearing

For children’s educational & developmental needs1

Why is children’s television important to public television?Why is children’s television important to public television?

To secure Federal and other governmental support2

For children’s educational & developmental needs1

Why is children’s television important to public television?Why is children’s television important to public television?

To secure Federal and other governmental support2

As icons of public television 3

Children’s Television LandscapeChildren’s Television Landscape

Programming Budget GrowthProgramming Budget Growth

2003 2004

PBS, Disney and Nick Programming Expenditures 1999 - 2004

50

100

150

200

250

2002200120001999

300

350

0PBS Direct

$ M

illion

s

400

Advertising, Merchandising, Sub Fees

Sources of RevenueSources of Revenue

2004 total revenues for kids TV

100% = ~$2.3 billion Cable Sub Fees

48%

Merchandising

8%

Advertising Advertising

44%44%

Children’s Television Landscape Children’s Television Landscape Age x Education

Educational(self-identified)

Not Educational

Age

6-11

2-5

Perception of ValuePerception of Value

Discovery Nick Disney Cartoon

“Educational programs from which my child can learn”% of parents who agree

20%

40%

60%

80%

100%

Noggin

2002 2004

HighHigh

PTV Attitudes

PTV

Usa

geHighHigh

LowLow

Households Watching TodayHouseholds Watching Today

HighHigh

PTV Attitudes

PTV

Usa

geHighHigh

LowLow

Households with ChildrenHouseholds with Children

Public Television LifespanPublic Television Lifespan

30 40

Relationship With Public Television

20100

High

Low

Age

Introduced by a Mentor

Parents of Young Children

For children’s educational & developmental needs1

Why is children’s television important to public television?Why is children’s television important to public television?

To secure Federal and other governmental support2

As icons of public television 3

To keep the door open to primetime4

As public television seeds in young viewers5

Reinforcing PTV PrinciplesReinforcing PTV Principles

QUALITY

TRUST

INTELLIGENC

E

BALANCE

UNIQ

UENESS

ENGAGEMENT

VARIETY

CONSISTENT VISIBLE

APPROACHABLE

For children’s educational & developmental needs1

Why is children’s television important to public television?Why is children’s television important to public television?

To secure Federal and other governmental support2

As icons of public television 3

To keep the door open to primetime4

As public television seeds in young viewers5

By delivering on core principles 6

Discussion

Five InsightsFive Insights

Root, root, root for the home team1

It’s not about the money (or is it?)2

The power of our air3

In education, bigger is better4

Digital déjà vu5

Being Local MattersBeing Local Matters

RenoKNPB Denver

KBDI

College StationKAMU

Des MoinesIPTV

MadisonWHA

DetroitDPTV

Cleveland WVIZ

Philadelphia WHYY

Portsmouth NHPTV

AtlantaGPB

San Francisco KQED

Measuring Their Impact

Listening to the

Community

Using Community Needs to Guide

Planning Communicating

Broadly

Connecting LocallyConnecting Locally

PartneringLocally

Measuring Their Impact

Listening to the

Community

Using Community Needs to Guide

Planning Communicating

Broadly

Connecting LocallyConnecting Locally

PartneringLocally

Five InsightsFive Insights

Root, root, root for the home team1

It’s not about the money (or is it?)2

The power of our air3

In education, bigger is better4

Digital déjà vu5

$328 M18%

Costs and ReturnsCosts and Returns

Total Station Expenses

Total Station Revenue

$1.83 B $1.8 B

14%$247 M

Costs Exceed Direct RevenuesCosts Exceed Direct Revenues

- $66 M

- $8 M - $8 M$10 M

Local Production

Online Outreach

EducationServices

Indirect Revenues Indirect Revenues

$1.8 Billion

2003 Total System Revenue

State & Local Government $503M

Federal Government

$289M

Major Giving $47M

Membership $343M

47% Indirect Revenue

Five InsightsFive Insights

Root, root, root for the home team1

It’s not about the money (or is it?)2

The power of our air3

In education, bigger is better4

Digital déjà vu5

Our Highest Value OfferingsOur Highest Value Offerings

Mixed Local ProgramsMixed Local Programs

Five InsightsFive Insights

Root, root, root for the home team1

It’s not about the money (or is it?)2

The power of our air3

In education, bigger is better4

Digital déjà vu5

40 Stations Dominate40 Stations Dominate

Number of Stations

Total Educational Services Revenue

173 $77M

Tier 3

Tier 2

Tier 1

Total

72

61

40

$3

$12

$62

Five InsightsFive Insights

Root, root, root for the home team1

It’s not about the money (or is it?)2

The power of our air3

In education, bigger is better4

Digital déjà vu5

Digital TodayDigital Today• Significant digital infrastructure in place• Digital content = analog content• Successful digital service business models are still being developed– HD– Multicasting– Datacasting

De

scr

ipti

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Pass ThroughPass ThroughNumber of Stations, 2004

9

12

14

17

26

32

41

83

111

Local HD

Telecourses

X/XD

Datacast

Local SD

You

Kids

PBS HD

Analog simulcast

De

scr

ipti

on

Datacasting TodayDatacasting Today

Public Healthand Safety

• Sending site specific materials

• Providing rescuer training

• Transmitting national warnings

K-12

• Providing bite sized “teachable moments” tied to state standards

R&D

• Developing next generation technology

Five ImplicationsFive Implications

Stay Rooted

Root, root, root for the home team1

Know your critical funders

It’s not about the money (or is it?)2

Use it wisely

The power of our air3

Know thyself

In education, bigger is better4

Consider local content & services

Digital déjà vu5