WGUC Strategic Plan

WGUC-FM Cincinnati’s Classical Public Radio Station

- The Strategic Plan -

February 2000

Contents

I. Introduction

II. Mission Statement

III. Station History

IV. Brand Statement

V. Competitive Environment

VI. Cost/Timetable of Digital Conversion

V. The Strategic Plan

1. Strategic Planning Committee 2. Continue Programming Improvement 3. Expansion of Community Outreach 4. Investigation of a Second Channel 5. Digital Conversion 6. The Internet 7. University of Cincinnati Relationship

INTRODUCTION

"The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?" -- David Sarnoff's associates in response to his urgings for investment in the radio in the 1920s.

Although they were anything but prescient, these contemporaries of the founder of RCA do offer an unintentional caution to us on the cusp of the 21st Century: Anticipate the future or be left to regret the past.

As WGUC – Cincinnati’s Classical Public Radio Station -- celebrates four decades of broadcast excellence, we face a future full of unprecedented challenge and competition. Specifically, there are two critical issues soon to confront this station that this Strategic Plan seeks to address:

1. The imminent arrival of new classical music radio competition from satellite broadcasters. 2. The mid-term conversion of traditional analog radio to digital technology.

Fortunately, the station is well positioned to engage these threats and not only survive, but thrive. WGUC benefits from

• a committed and involved Board of Trustees • a talented and enthusiastic management and staff • award-winning, innovative local and national programming • an expanding audience • record-breaking fund-raising • a state-of-the-art technological plant • a strong local identity • a forty-year tradition of fine arts broadcast excellence

One of our goals for this past year was to initiate and complete a strategic planning process for WGUC. The Strategic Plan that follows is evidence of our having accomplished this goal.

In this initial phase, we reviewed WGUC’s Mission Statement, discussed and debated both short and long range priorities, and put into writing an ambitious list of goals and activities involving the participation and leadership of virtually every trustee and staff member. During the past year, a great deal of time and energy has gone into their creation. This plan, along with data contained in the station’s annual financial report, provides an excellent overview of WGUC . . . past, present and future.

Reminiscent of the Chinese proverb, we are both blessed and cursed to live interesting times. As stewards of a public trust and resource, we recognize that the destiny of WGUC can be shaped as much by outside forces as by internal design; and that government regulation, technological evolution, competitive forces and societal whim all can conspire to aid or afflict our efforts. While definitely worth monitoring, such factors are things we can influence but ultimately cannot control. We can, however, control the activities we decide to undertake just as we make decisions about how we allocate our considerable resources, staff and finances. Finally, we control the environment in which we work. In this context, this Strategic Plan marks a new beginning for WGUC.

Considering the challenges and opportunities that lie ahead, it couldn’t have come at a better time.

WGUC MISSION STATEMENT

WGUC's mission is to bring the finest classical music programming to the people of the Tri-State. On a secondary basis, we shall meet the news and information needs of this listening audience.

In order to carry out this mission, we shall:

1. Introduce fine classical music to the largest possible audience while bringing a new generation of listeners into the WGUC family.

2. Produce programming to satisfy every listener's level of classical music appreciation.

3. Provide listeners with high quality news, information about important local issues, current information on community arts activities, and broadcasts of local classical music performances.

4. Generate the funding needed to execute this mission not only on a year-to- year basis, but also well into the future.

Operating Principles

WGUC will:

1. Provide superior satisfaction to our customers, especially our listening audience. We shall define ways to identify satisfaction and to measure our on-going performance in delivering it.

2. Seek continuous improvement in everything we do. As part of this, we shall measure our performance against other classical music stations.

3. Hire a staff of the highest quality individuals and empower them to perform to the fullest extent of their capabilities.

4. Respect and utilize the diversity that lies within our organization, the Board and our listening audience to execute our mission in the best way possible.

HISTORY

WGUC, Cincinnati's oldest and largest public radio station, was founded in 1960 by a group of citizens who wanted a radio station devoted to cultural and public affairs programming. Today the station's commitment to its heritage continues as it fulfills its mission to bring the finest classical music and public information programming to the people of the Tri-State.

WGUC was one of the first stations in the nation to meet the Corporation for Public Broadcasting's qualification standards; it was a charter member of National Public Radio in 1970; and a founder of American Public Radio (now Public Radio International) in 1982. WGUC was also one of the first NPR uplinks; the producer of the first digital west-to-east transatlantic broadcast; and is the only public radio station to commission new music.

The station is licensed to the University of Cincinnati and is operated as an affiliate non-profit corporation of the university by Cincinnati Classical Public Radio, Inc. WGUC's signal covers a 60-mile radius.

More than 150,000 listeners each week tune to 90.9 fm for classical music and in-depth news from National Public Radio's All Things Considered. In addition, WGUC broadcasts many local musical events including the Cincinnati Symphony Orchestra concerts, The Cincinnati May Festival and Cincinnati Opera seasons. WGUC also serves as a friendly reference guide to Greater Cincinnati's vibrant and extensive cultural life, making its listeners aware of the many events and performances that take place throughout the area.

WGUC approaches its 40th anniversary with great enthusiasm. While the digital age presents unprecedented challenges, it also holds promise of significant opportunities for improving and broadening its service. True to its heritage, WGUC is committed to its unique role as a broadcast medium that provides the highest quality fine arts and information programming for the Greater Cincinnati community.

THE WGUC “BRAND”

Background - A brand is “the personification of a product”. Therefore, it’s more than just a product.

Like any person, a brand has a “personality” … and a character too. It has a set of core beliefs. It has a reputation. And you can have feelings toward a brand similar to your feelings toward another person. You can respect it, like it, and even love it. You can think of it as a deep personal friend, or merely an acquaintance. You can view it as dependable or undependable; principled or opportunistic; caring or capricious.

Like any person, a brand can mature and change its product over time. But its character, and its core beliefs shouldn’t change. Neither should its fundamental personality and outlook on life.

Creating a great brand requires that you define more than just the product. You must also define that basic personality; the core beliefs and even the reputation you would wish the brand to have among its target consumers. In other words, you must define those elements that should not change with time.

The WGUC Brand - WGUC’s product is presently the programming that goes out over 90.9 FM in Cincinnati. It’s the music, the contextual information about the music, and the news and information we deliver.

But the WGUC brand is much more than that. It believes:

• In the fundamental nobility of the human spirit. • That while humanity is capable of great goodness and evil, classical music both reflects and celebrates “the best that’s in us”. • That everyone can learn to appreciate and be enriched by classical music. • That relevant contextual information can enhance our appreciation of every composition. • That great classical music is a profound and universal means of communication that transcends cultures and national boundaries, and unites people in their humanity.

WGUC’s personality is a direct reflection of these core beliefs. It is:

• Authoritative, but not authoritarian. • Engaging, but never pandering. • Witty, but not comic. • Urbane, but never aloof or elitist. • Friendly, but not chummy. • Intelligent, but never pedantic. • Involved in our community and committed to meeting our listeners, face to face.

WGUC’s reputation will be defined by its listeners, through feedback phrases like:

• “The best source of classical music I’ve ever experienced.” • “I can depend on WGUC to tell me enough about each piece that I hear it new ways.” • “WGUC gives me just the right amount of news and information; then gets back to the music.” • “I love WGUC’s announcers. They treat me with respect, never “talk down” to me, and “connect” me to classical music like no one else can.” • “WGUC is part of our community. I can’t imagine Cincinnati without it.”

The Competitive Environment

The media environment five years from today will be dramatically different than today’s, both in terms of the number and nature of competitors and in the shape and texture of the technology they will use.

Satellite-delivered, digital, surround-sound audio will be available to every automobile and home in the continental United States. Promising up to two hundred discrete channels of music, news, and spoken word programming, S-DARS (Satellite Digital Audio Radio Services) promise full-time streaming of multiple classical music channels, some devoted to a specific subset of the genre, e.g., baroque, opera, symphonic, chamber, etc.

High quality, digital stereo music programming will be emanating from desktop computers and portable laptop and palmtop devices via the Internet. Through multiplexed POTS (plain old telephone service) lines, fiber optic cable, cable television services, terrestrial transmission or low earth orbiting satellites, a high speed data and audio stream are likely to be as accessible as broadcast radio is today. Traditional broadcasters as well as Internet-based providers will offer a plethora of audio services, integrated with text, illustrations, animation, and video. Based upon the level of their presence today, it is more than a safe assumption to anticipate classical music purveyors will be well represented.

In addition to today’s Internet music producers, it is highly likely entities with huge classical music catalogs (software) will also be offering significant audio content. In addition to “record” companies such as Sony and Deutsche Welle, the Smithsonian Institution and other non-profit and for-profit organizations are likely to be players.

Indeed, within our own industry, both NPR and PRI are pursuing plans to deliver audio on the Internet and via direct broadcast satellite.

Traditional radio broadcasters will undergo a period of dramatic evolution – more correctly, revolution – of their own. The transition to digital audio broadcasting (DAB) will require the investment by each station of upwards of quarter million dollars. That investment will fund the most startling changes in radio since the introduction of FM.

When you get up in the morning, your “radio” will wake you with the day’s weather, traffic, and national and international news from NPR – all of which it downloaded and continually updated overnight, to play back, as programmed, when your alarm goes off. Briefly, the broadcast programming is interrupted by an announcement of a school closing notice for your child’s school. Your boss hasn’t heard about the school closing, but then she doesn’t have any children, so her radio wasn’t programmed to provide school closing information. After breakfast you decide you’ve had enough world news and press a button that skips you ahead to the stock reports for your stocks. Once in your car, you decide to “surf” the radio spectrum. Responding to your audio command, your radio quickly scans past dozens of channels of jazz, several of Celtic music, a couple of blues channels, and then slows down as you decide on a particular style of classical, from the fifty or sixty available, to meet your mood. Everything you hear is of the highest quality digital stereo available.

On your way to work, your radio advises you in a pre-selected female voice (you had selected a Marilyn Monroe sound-alike), of traffic congestion on I-71. You ask for alternative routing suggestions, and your radio provides – in words and on a digital display – alternate driving directions based upon the latest traffic data uplinked just minutes ago by the highway department.

If you think this is too futuristic, it is sobering to recognize that every feature mentioned above (and many more not included) has been demonstrated in products available today. For example, Microsoft has developed its version of a “personal radio” to meet individualized needs. (A version recently demonstrated was capable of skipping on-air pledge breaks once you have paid your pledge!)

The Future of Digital Audio Broadcasting (DAB)

Digital Audio Broadcasting is on the path to becoming reality. The main questions are how long will it take to implement and at what cost. The best way to explain the process is to break it into stages.

Stage Completion Date

1) The first stage, which is currently underway, is for the industry experts to design systems and perform laboratory and real life testing. October 2000

2) The second phase is up to the FCC. The FCC is responsible for determining the standard for DAB in the United States. The Commission January 2002 will evaluate the test procedures, completeness and broadcasting effectiveness (quality) and benchmark it against current FM analog broadcasting. Ultimately they will adopt one manufacturer’s solution as the standard based on these criteria.

3) Once a standard is decided the FCC will hold a comment period to gather feedback on the standard that has been chosen (and possible legal June 2003 actions by the companies that weren’t selected as the standard). This could lead to delays while court battles are decided or test procedures and results are proven.

4) Next the FCC must establish technical rules and regulations to govern the new DAB standard. In conjunction with this manufacturers will ramp up January 2005 design and testing. The manufacturers must submit equipment to the FCC for type acceptance before they will be able to start production and sales.

5) It’s possible the FCC will decide to implement DAB either universally or based on market size. If it is implemented based on market size January 2006 Cincinnati should either be in the first or the second round (Cincinnati is the 26th largest market). For the purpose of this timeline we will assume Cincinnati will be in the second round.

6) Implementation of DAB at the local station level. This will be dictated based on available money, FCC requirements on an implementation August 2006 period, and the availability of proven DAB broadcast equipment. If it is desired to move fast it may be possible to have equipment researched, bids completed and orders ready to be placed the day WGUC gets the approval from the FCC to go with DAB.

7) Transition period. This is the period that broadcasters will be required to maintain an analog and a digital broadcast signal. Market experts are June 2016 requesting as much as 12 years. It is most likely that a 10-year period will be adopted.

As you can imagine placing a timeline on the above is very difficult. The industry is doing everything in its power to push DAB as fast as possible. The FCC holds the key to the entire process. In October of 1998 a PETITION FOR RULEMAKING was filed with the FCC by one of the equipment manufacturers. To date the FCC has not made any movement on an official position. The FCC has every intention on standardizing on one DAB system but they are taking their time in an effort to evaluate all the systems and choose the best.

Currently FM stations are allocated the frequencies between 88 and 108 MHz. Proponents of DAB are proposing three types of DAB systems: In Band On Channel (IBOC), In Band Adjacent Channel (IBAC), and the creation of a new frequency band. For technical reasons it is widely anticipated that the best system and the most acceptable to the FCC and the broadcasters will be an IBOC system. For the purpose of forecasting the cost of DAB to WGUC let’s assume the adoption of an IBOC standard.

Experts have conducted research and feel that implementation of a DAB IBOC system will cost between $70,000 and $190,000 per station. The cost depends heavily on your current capabilities. Some include necessary space in the transmitter building for the new equipment, additional power requirements which result in upgrading the building power feed, acceptable performance of the current analog equipment with respect to the new DAB equipment and the DAB equipment itself. An IBOC system doesn’t increase tower requirements thus no additional rental cost should be associated with DAB. There would be a need to purchase and install a new IBOC digital exciter, transmitter and a RF combiner. The combiner will mix the current analog RF signal and the new digital RF signal into one signal to be sent to a common antenna system.

WGUC is in a good position. We are starting a project that will ensure high quality analog transmission as well as compatibility with new DAB equipment. Our transmitter room facility should have adequate space and the commercial power feed into the building is sized sufficiently for the additional load.

Conclusion: It is likely that WGUC will be able to implement fully DAB IBOC transmission around August of 2006 at a cost of at least $110,000 and an additional ongoing annual cost of about $9,000 for commercial power.

Summary of the Strategic Plan

THE SEVEN KEY CHOICES WE ARE MAKING

1) Establish a permanent Strategic Planning Committee, comprised of Board and Staff members and chaired by the CCPR Board Chair, to transform strategic planning into an on-going process. This recognizes the highly dynamic nature of the competitive environment and the resulting need for on-going evolution of WGUC’s strategic plan.

2) Continuously improve WGUC’s programming. WGUC will continue to review and improve the quality of music and meaningful commentary; strengthen the bond with the local community by including appropriate references to and performances and interviews by key local or visiting artists of interest, and by on-air hosts' attendance at important arts and outreach events; and provide additional in-depth information and audio on demand through its web-site programming.

3) Significantly expand WGUC’s community outreach programs in order to become an even stronger member of the Tri-State community, thereby expanding and strengthening listener loyalty in the significantly more competitive environment that lies ahead.

4) Continue to investigate the financial feasibility of acquiring a second broadcast frequency (and license). While the financial challenges are formidable, and perhaps controlling, the availability of a second “channel” would allow WGUC to compete better by broadcasting full time classical music on one channel, and offering a mix of news, public affairs and part time classical music on the other.

5) Complete the conversion to digital broadcast technology on a timetable that reflects the government’s decisions on technology standards and conversion schedules. Raise the required funding to accomplish this through a major gifts campaign, commencing about the year 2002.

6) Enhance and expand WGUC’s Internet presence. As our audience migrates to this new medium, the station has an opportunity to extend our brand and our service to our customers, while maintaining our viability in the new media environment.

7) Strengthen CCPR’s on-going relationship with the senior administration of the University of Cincinnati, recognizing they will continue to hold WGUC’s broadcast license and that CCPR serves only at their pleasure.

The attached sheets discuss each of these choices in further depth.

CHOICES WE CONSIDERED BUT DO NOT RECOMMEND

1. Any substantive changes to WGUC’s mission statement.

2. Modification of WGUC’s brand identity statement.

3. Changes to WGUC’s personnel recruiting or compensation principles.

4. Any major changes in WGUC’s music/news programming mix as long as we remain with a single broadcast frequency.

We consider these four elements to be WGUC’s greatest strengths as we enter the new competitive environment.

Make Strategic Planning an Ongoing Process

Strategic Planning Committee

In order to ensure that WGUC’s Strategic Plan remains dynamic and relevant in light of competitive forces and evolving technology, the CCPR Board of Trustees will establish a standing Strategic Planning Committee comprised and operating as follows:

1. The Committee will be comprised of an equal number of CCPR Trustees and WGUC Staff. It will ideally have 6 to 8 members -- including the Board Chairman and station CEO with other members appointed by them.

2. Normally, the CCPR Board Chairman will serve as Chair of the Strategic Planning Committee; however, should he/she decline to serve in this role, the Committee will select another person to serve as Chair.

3. The Committee will meet as technological, political or competitive conditions warrant, but at least twice each year.

4. At least annually (most appropriately at the Annual Meeting), the Strategic Planning Committee will submit a formal report to the CCPR Board of Trustees as to the status of the Plan and propose any changes thereto since the last Committee report. The Board will then have the option of accepting, altering, deferring or declining the Committee’s recommendations.

Continue Programming Improvement

As new sources of classical music radio emerge from satellite broadcasters offering WGUC's listeners other options, it becomes imperative for WGUC to improve its service to listeners, giving them fewer reasons to tune away to these other sources. The WGUC on-air product will be strengthened by focusing on four key areas: music, context, localization, and personalities. It is our belief that continuing success in these four critical areas will make WGUC increasingly relevant and appreciated by a growing audience.

1. Music

• Complete the current project of reviewing every piece of music in the WGUC database to make sure WGUC is scheduling as many quality, appealing pieces of classical music as possible. (Also review pieces and performances that may need to removed from the database, or have their airplay reduced.) • Acquire additional, key pieces and performances for the WGUC library. • Continue to review and fine-tune the dayparting, specifically focusing on morning drive and Night Music. • Monitor rotation of pieces. • Add quality, representative local recordings to the weekly schedule.

2. Context

• Solidify pronunciation proficiency of all on-air staff. • Fine-tune amount, quality, and wording of content, so announcers’ breaks are focused, yet warm, inviting, and interesting to listeners.

3. Localization

• Include more focused mentions and references to key local musical/arts events. • Produce spots including calendar information and interview excerpts, voiced by all announcers. • Manage placement and frequency of mentions and spots.

4. Personalities

• Continue to train, review and monitor progress of announcers. • Assess audience numbers for specific day-parts. • Reassign hosts to different dayparts or projects, if necessary, to assure continued audience growth. • Develop and maintain list of potential hosts, for future vacancies.

Expansion of Community Outreach

WGUC’s strategic goals of providing quality programming and raising the necessary funds to support it cannot be achieved with a purely internal focus. The station must reach out to the community; put a human face on our broadcast activities and embrace our mission of introducing a new generation of listeners to classical music.

Improving WGUC’s community outreach will strengthen the relationship between the station and its listeners. This relationship is the basis for listener loyalty and member support. Outreach into the community will also introduce the station to WGUC’s potential new listeners.

Events - Events are valuable to WGUC’s community outreach activities because they provide entrees to new audiences; reinforce WGUC’s brand identity; and provide opportunities for announcer/listener interaction, increased revenue from corporate sponsorships and ticket sales, and increased volunteer involvement.

• Increase station participation in events whose targets match WGUC’s audience • Increase station events for members and major donors • Establish additional fundraising event opportunities • Use events to introduce potential listeners to classical music

Educational Programs - While research has demonstrated the benefits of listening to classical music, many schools have greatly reduced or eliminated music from their educational priorities. As a mass medium and the only broadcast source of classical music, WGUC is well positioned to provide services that will assist parents and teachers not only to introduce children but also foster an ongoing appreciation for classical music.

• Continue to develop the current Classics for Kids© radio broadcast and accompanying activities • Increase scope of curriculum materials available to teachers: more lesson plans, CD-ROM, additional CDs, interactive website • Continue to recruit participating schools • Develop appropriate program for Junior High and High School students • Develop classical music event(s) just for children

Marketing/Public Relations - In the face of competition, an integrated marketing/communications plan will build WGUC’s brand equity by focusing on the station as a community asset, projecting a unified image to the public and reinforcing the benefits a listener receives by tuning in.

• Ongoing on-air branding campaign. • On-going publicity/media relations. • Content rich, interactive, innovative website. • Publications that keep members informed of station activities while also offering opportunities for life- long learning. • Develop station brochure, annual report. • Identify complementary media sources and work to establish partnerships to expand recognition of WGUC-FM. • Establish annual advertising budget. • Continue to enhance national reputation as a classical music station of the highest quality and a leader in the system through national program distribution, music commissioning, and involvement with national public radio associations.

Obviously, to be any more than window dressing, these good intentions must be translated into actions – actions with financial implications. As staff creates each subsequent year’s operating budget proposal, every effort will be made to support these initiatives with the means to accomplish them.

Investigation of a Second Channel

WGUC's mission, to bring the finest classical music programming to the people of the Tri-state while meeting their news and information needs, will always require a delicate and complicated balancing act so long as the station possesses a single programming outlet. Whenever music is being offered, we cannot present news and information. News programming preempts music. While we benefit from a proven classical music listener affinity with National Public Radio style news, we cannot assume that every classical music listener enjoys hearing in-depth news reportage or that each member of our audience finds our scheduling and mix of music and news to his liking.

A second pipeline – whether it be broadcast or wired - could allow WGUC to better serve our audience (and attract new listeners) by providing a full-time classical music service and a mix of news and music alternatives.

As we enter an era of increasing competition for our audience’s loyalty, it will become ever more critical for WGUC to “super serve” its core constituents. If we can also offer core and fringe listeners valuable, quality programming in the WGUC brand as a viable and attractive alternative, we can limit some of the loss in market share that otherwise might accrue to the benefit of competitors.

This is precisely the tack being proposed by our new satellite competitors in virtually every genre of music they plan to offer. In effect, each operator will offer niche music programming streams that compete directly with similar programming it presents on other channels. The concept here is simple: The audience is fickle; it will divide its listening time among a variety of offerings. The more one can limit that sampling to one’s own stable of offerings, the greater one’s success. This is also the same strategy that has been employed by commercial broadcast operators in recent years.

While we presently offer audio streaming over the Internet, apart from select files of archived audio, our offering is identical to and simultaneous with what is being broadcast. Eventually, as streaming technologies improve and access to the Internet becomes more ubiquitous, we may want to consider providing an Internet program service distinct from our over-the-air signal.

On the broadcast front, there are two possible ways CCPR might gain access to a second channel.

One is to buy a commercial station outright. Frankly, the odds of this happening are very remote because commercial stations in our market could easily sell for $10 million or even more. However, there's a remote possibility a commercial operator of multiple stations, like Clear Channel, which may have to divest a station or two to stay within FCC guidelines could decide to sell to a non-commercial operator at a price well below market value in order to avoid the direct competition another commercial buyer would create.

The second way we might gain access to a second channel would be to negotiate an operational agreement with another university (such as Xavier or NKU) similar to the one we already have with UC. While the odds of this happening are not great, they are probably considerably higher than the first option noted above.

After considerable study, we believe a second channel could raise our current underwriting and donation revenues by about 50%, or about $1 million per year, and that the incremental programming costs would be only about $450 thousand. Thus, we'd have only about $550 thousand in annual "free cash flow" to cover any debt service we might take on in conjunction with a second channel. That's why we think the odds of option two are greater than those of option one.

We are not proposing any specific actions at this time. We simply want to board to be aware that we think a second channel is worth some on-going consideration. The board should be reassured we will not do this at the expense of distracting any of the staff from making 90.9, our existing channel, the best it can possibly be. Nor will we ever come to the board with any financial proposition we don't believe is downright conservative in its assumptions. But we do want you to understand how a second channel would help us improve the execution of WGUC's mission and to be aware we will maintain an on-going, though low level, consideration of various options for making it happen.

Complete Digital Conversion

Significant grants from the State of Ohio are already in hand, and we have requests for additional gifts presently under review among several local foundations to provide funding for the upgrading of our digital production plant.

As soon as the Federal Communications Commission makes public its determination regarding format and criteria for digital terrestrial transmission, we can review the compliance timeline, manufacturer’s specifications and costs, and effect the final phase of WGUC’s conversion to this new technology.

Until then, our only course of action will be to monitor technological and regulatory developments and, where and when appropriate, participate in industry dialogues and FCC proceedings to protect and advance WGUC’s interests.

This is a crucial area of concern with which we shall keep the full CCPR Board of Trustees apprised.

WGUC Internet Initiatives

Use of the Internet has grown exponentially in recent years with Americans using the Internet mainly as an information and communications utility. WGUC’s future audience will be a cross-media audience. With its current Internet operations - website and streaming audio - WGUC has already staked a claim to its listeners’ on-line usage. The WGUC website is beginning to meet our listeners’ needs for additional information with a dynamic interface that tells the listener what is playing now, detailed program listings and host bios, additional information on events showcased by Cincinnati Spotlight, Classics for Kids program summaries and archives, and the ability to listen on-line in places where the radio signal fails. The station now has the opportunity, while the Internet is still evolving, to own its sophisticated and desirable audience across channels.

Broadcast radio’s strength is in its portability and participation in multi-tasking. The Internet’s strength is in its ability to target and involve the audience. It is also archive-able. Together the two can provide very complementary, synergistic programming for super-serving the WGUC audience. What would this look like?

• A cultural resource: wguc.org becomes an in-depth source of information and produced elements on classical music, its composers and performers; an on-line gateway and guide to the Greater Cincinnati arts and cultural community; and a local reflection and celebration of the best of humanity.

• Archived, on-demand elements: Longer-form versions of WGUC’s produced interviews and arts features; recordings from the WGUC audio library; archives of WGUC local recordings; specially produced cultural features, etc. - all accessible at the user’s convenience.

• Additional audio channels: wguc.org offers a choice of classical music and/or news audio streams, each with a different, targeted focus, and enhanced with explanatory text, pictures, and video to better serve each listener’s tastes and interests.

• Developing community through conversations: wguc.org becomes a facilitator for communication between persons who share a love for Greater Cincinnati’s unique cultural experience as well as a love of classical music and the visual and performing arts. Opportunities include bulletin boards and chats devoted to specific classical music or Greater Cincinnati arts related topics; special event chats; surveys for ongoing audience feedback; and specially developed audience participation features. Involvement by WGUC hosts will build their individual relationships with the audience as well.

WGUC’s current Internet activity is accomplished through a trade agreement with an Internet design and marketing firm, valued at $100,000; the part-time involvement of 4-5 staff members, valued at $33,500; the donation of a T-1 connection by the State of Ohio, valued at $14,400; and a $10,000 investment in hardware. For WGUC’s Internet initiatives to enhance revenues, the station must continue to develop and maintain a dynamic website that provides a service the WGUC audience values and is willing to support.

Following the broadcast model, users will support the programming they value. Thus, as WGUC’s Internet content builds user value, membership revenue will increase. Archived audio will be used as a primary tool for building member value. By limiting to members WGUC’s most compelling on-line content - in-depth interviews, web-only produced features and archived WGUC productions - we add increased value to the WGUC membership. Another source of revenue will be on-line sponsors. The sale of merchandise or services of interest to WGUC’s audience, as well as auctions, and web site hosting are other possible new revenue sources. The station’s membership income from on-line pledging continues to grow with each successive fund drive; we plan to add on-line underwriting and merchandise sales to the site.

WGUC does have one critical advantage over its competition. Internet usage is dictated by the user; it is a very passion driven environment. WGUC’s listeners are also very passionate about their relationship with the station. In fact, the station has been building a relationship of trust and credibility with our listeners and members – a relationship based on common values and interests - throughout our history. Our

listeners will be looking for this type of relationship on-line as well and WGUC is positioned to provide and benefit from it.

Strengthen WGUC’s Relationship with the University of Cincinnati

The broadcast license for WGUC still rests with the University of Cincinnati, although day-today responsibility for the operation of the station has been in the hands of the Cincinnati Classical Public Radio Board of Trustees for the past five years.

From its founding in 1960 until 1994, the station operated under the supervision of the UC President’s Office. With the establishment of a Local Management Agreement (LMA), UC maintains the license (along with legal and official responsibility for WGUC) while management, programming, and other day-to-day functions are overseen by CCPR, Inc.

Under the terms of the LMA, CCPR agreed

to manage and operate the Station under the supervision and control of the University, as licensee. The management services provided herein shall include all aspects of the full operation and management of the Station, including, but not limited to, the production and acquisition of programming, administration of all Station activities and personnel, employment and training of all personnel for the administration and operation of the Station, financial and accounting services, engineering services, development of financial support, and compliance with all applicable laws and regulations.

At its sole discretion, the University of Cincinnati may, at any time, rescind the LMA and re- institute direct operational control over WGUC.

It is, therefore, in CCPR’s best interest to ensure not only that WGUC continues to be operated efficiently, effectively and as a credit to the University, but also that positive and productive political and institutional ties are maintained and fostered.

In this regard

• WGUC will continue its practice of reporting all membership gift information to the University of Cincinnati Foundation on a monthly basis. WGUC provides this list including the name, address, and gift amount and gift date information, during the first week of every month. The Foundation also requests information on revenue projections/income throughout the year, which we provide. The station continues to receive several gifts per year from individuals and matching gift companies giving through the Foundation.

• In addition, the activities and features of the University’s College-Conservatory of Music and other departments, as appropriate, will be featured in local events coverage and broadcasts.

• Although not mandated by its charter, CCPR, Inc., will make very effort to include representation of the University of Cincinnati at the trustee level.

• Regular acknowledgement of the University’s continued financial support (UC provides funds to cover rental of WGUC’s studios and offices), and of its crucial role in the creation of WGUC will be given in on-air mentions and in the station’s publications.

• The University will receive acknowledgement and be invited to participate in celebrations commemorating WGUC’s 40th anniversary year.

• The CCPR Chairman and station CEO will maintain ongoing contact with the University President, key administrative personnel and other key stakeholders to ensure all parties are aware of each others’ objectives and priorities regarding WGUC and its future.

• Finally, the Chairman and CEO will continue and expand our discussions with University administration regarding the possibility of transferring the license of WGUC to CCPR, Inc. Should these talks be productive, CCPR will work to facilitate such a transfer.