Changing Public Media, Changing PRC

Public Radio Capital 2013 Annual Report This report celebrates the ways Chair’s Letter

in which Public Radio Capital In an era of rapidly changing technology that drives our everyday experiences, Public Radio Capital (PRC) is serving clients — public has been a catalyst for meaningful change in . The marketplace for buying and selling media outlets large and stations, with the resulting expansion of service and preservation of public stations, was advanced by small — as they define changing PRC. The historic audience growth in public radio civic, cultural and media roles can be directly tied to our brokerage and consulting work. PRC’s unique strategic operations analysis and while staying true to mission. financial modeling have allowed stations to advance their mission, broaden their reach and deepen their Our work is about helping impact. PRC was founded in 2001 with a mission to be a catalyst in the marketplace for station transactions in public them becoming more significant and sustainable, not media, and as that media world has evolved we now see opportunities to create innovative pathways to just for today’s audiences, but for tomorrow’s as well. audiences with new and existing content, new online and mobile applications, new synergies between tv and radio, and new ways to make the most of broadcast spectrum.

In addition, we take the opportunity in this 2013 Annual Channel X, through the seminal and ongoing help of Report to tell you how Public Radio Capital (PRC) is Wyncote Foundation and a generous 2014 grant from All of this change is summed up in our decision to change our itself changing, yet committed as always to a mission to the MacArthur Foundation, will be launched in May strengthen and expand public media nationwide. Our 2014. You can read more about Channel X on page 13. name from Public Radio Capital to Public Media Company with work has shifted toward greater emphasis on innovative You will be seeing a new PRC in 2014 — with a name our mission being: To maximize the relevance and impact of strategies that bring new content and diverse voices to change to Public Media Company and a new look. public media — and finding aysw to deliver more of both public media for all. We want to serve our clients and their growing through new media opportunities. public media audiences as we always have with a Going forward under the name of Public Media Company (PMC), we will continue to provide brokerage I want to acknowledge the contributions of Ken Ikeda, commitment to excellence, an emphasis on analytical representation, strategic planning, and operational assessments, helping clients toward greater efficiency, impact who served with me over the past year as co-managing and transactional expertise, and, above all, a passion and sustainability. PMC will also take a more active role in seeking opportunities to construct market based director. With Ken’s guidance, PRC has made a to strengthen media where public service is the ultimate regional and national operating collaborations that result in more efficient uses of resources and to develop new bold commitment to growing our leadership role in goal. Together with you our clients, colleagues and products and solutions that we believe will add value for the system and extend the reach of existing and new managing television spectrum and developing much funders, we will lead the change for public media in public media content to the American public. needed content management and distribution systems ways that inform public discourse, celebrate culture, that are critical to diversifying public media offerings. In and illuminate the world of ideas. We invite your engagement in our work, as clients, collaborators, and colleagues. Together we can ensure that 2014, Ken has stepped into the role of Chief Strategist, the changes in our lives will be made more understandable, more positive and more memorable by the presence focusing on development of several new products. of public media as our compass and companion, where ever we may be. Thank you for being with us! Marc Hand Marc Hand Table of Contents Lyn Grinstein Services Summary 4 Channel X 13 Lyn Grinstein Transactions/Clients 5 Financials 14 Client Stories 6 Staff and Board List 15

Cover photo credit: Christopher Nelson 2013 Annual Report 3 partner

Public Radio Capital impact trust strategy $315 million in transactions leader Covering 68 million potential listeners with new and improved public media since 2001. relevance collaborativecommunity analysis < innovation capacity public service Public Media Company impact

Public Radio Capital is now <

PMC has worked in 46 states and Puerto Rico

2013 Clients Group Santa Barbara Foundation Classical Public Radio Network The Working Group Since 2008, Public Tri States Public Radio Friends of mvyradio University of Central Radio Fund has lent Kansas City Public Media Missouri $8.9 million to nine public Public Radio Network University of Sioux Falls Consulting Lending broadcasters and two New Hampshire Public Radio WAPS Services Radio Bilingüe WXPN • Strategic Planning The Public Radio Fund program producers (eTown South Dakota Public Broadcasting Summary • Business Assessment and and The Working Group). Plus12 clients engaged Financial Modeling Financial Advisory in ongoing projects at pre-public stages • Station Valuations Short and long term financing options • Programming Solutions for acquisitions and capital investments • Transaction Representation: Mergers and Acquisitions Product Development Collaborations and Partnerships For content, distribution, and management solutions

4 Public Media Company 2013 Annual Report 5

6 Public Media Company in Kansas City andaudiences artists connections for making new Triple AMusicis

role communities. instrengthening philanthropy ofpublicbroadcasting’s issupportive that KCPT to secure aloanfrom FJC, aNew York-based to 1.4 PMCalsoworked listeners. million potential with project increases station’s that the reach from 400,000 and revenues, new personnel andasignalexpansion innewand businessmodelingtofactor audience 90.9FM,PMCprovidedBridge financial forecasting prepare KCPT The for integrating itsfirst radio service, for publicbroadcasting. asanoutlet station Tothe topreserve inefforts PMC worked parties both with PublicTelevisionCity (KCPT). For more 18 than months, licenseeKansas Central tocommunity-based Missouri of licensefrom station University the KTBG-FM of the Public MediaCompany (PMC)brokered transfer the < Photo credit: BobSzabo Photo credit: at bridge909.org/sessions. Soundlab andavailable online WeightsCity’s andMeasures Corsi). Recorded live atKansas (William Sturges andNathan Local bandNot APlanet < them covered.them knowGirls TheBridgehas like GuillenandThe Katy music library, localgroups bandinits pages for every commitment to create web recording sessionsorthe it’s YouTube videosof909 “listening local”.Whether music discovery, especially iscommittedKansas to City The Bridge90.9FMin 2013 7 Annual Report , “This collaborative effort (among public media outlets) < licensee of WFPL 89.3, gives us a unique opportunity to help shape a positive is working with five other future for the Commonwealth that we serve and Kentucky stations and Public Media Company to provide our audiences the best possible combination of explore ways to collaborate services and programming. We do believe that we can for greater public service, collectively preserve our localism and assure that our more efficiency, and a new avenue to ensure that own unique flavors are present in the content. The kind public media keeps the of collaborative modeling we can do as public media Bluegrass State informed outlets is indicative of the type of ‘public first’ approach and connected. that is increasingly necessary across a multitude of Louisville is just one of the intersections of business, education, government and cities in Kentucky that could nonprofits.” benefit from a new level of collaboration among David Brinkley, General Manager, public media outlets in the state. Partnerships around WKU Public Broadcasting state house reporting and underwriting are already impacting pubcasters and their audiences. capacity <

WEKU’s Eastern Standard < public affairs program could benefit from cost effective strategies that help guide more resources toward programming as Kentucky’s public radio operators examine the New strategies for public media are emerging as six historical financials, comparable performance metrics, potential for greater of Kentucky’s seven public radio stations work with individual and consolidated business models, and led a collaboration. Host John Public Media Company to explore the advantages of station convening to examine results and plan a Phase II of Hingsbergen with guest collaboration over competition in strengthening local work, which will continue in 2014. Chris Hartman of the programming and services. Driven by a changing funding Fairness Campaign. environment, and assisted by PMC, station managers Public media leaders in Kentucky are putting the people of Photo credit: Richard Turner worked together in 2013 to complete an initial phase of the Bluegrass State first as they contemplate the challenges what is now being called the Kentucky Collaboration. In of consolidation, service differentiation, growth, and Phase I, PMC provided a detailed analysis of the stations’ sustainability.

8 Public Media Company 2013 Annual Report 9 The staff of New Hampshire Public Radio—proving < that public media is a great place to be!

PMC Helps New Hampshire Public “We were delighted to find that our interest in developing a set of metrics Radio Build Dashboard coincided with PMC’s Public Media Database project. We can already Under the leadership of President and CEO Betsy Gardella, NHPR has been working with Public Media Company to develop a new approach to quantifying public media see the way our decision making impact and productivity. The collaboration yielded a comprehensive set of metrics that is sharpened by the commitment to will populate NHPR’s dashboard and gave insight into the development of PMC’s Public Media Database. The Database will aggregate station metrics to create a real time, 360 ongoing measurement. The things degree view of audience reach, fundraising success and financial health, designed to that matter are much more apparent help stations not only report on their progress, but provide ongoing comparative data for on a day to day basis.” planning and budgeting. A beta version of the Public Media Database is expected to be available to stations by the summer of 2015. Betsy Gardella, President and CEO,

New Hampshire Public Radio Photo credit: Bill Truslow

Donors Major gift revenues Weekly Broadcast audience Source of membership revenue 250 $500,000 AQH persons CUME (Percent of all gifts) Includes major giving Website users long-term Simplified tracking ($1,000+) 200,000 8,400 200 $400,000 Annual unique visitors – website of key metrics, analysis 50% Renewal < 160,000 8,000 Visits – website

< 150 $300,000 trends, and industry 40% Installment giving Page views 120,000 7,600 and sustainers j comparables will 100 $200,000 30% 80,000 h7,200 h New strengthen public 50 $100,000 Rejoin 40,000 6,800 20% 2009 2010 2011 2012 2013 Add gifts media performance. 0 $0 0 6,400 10% FY2009 2010 2011 2012 2013 YTD FY 2014 actual 0% FY2009 2010 2011 2012 2013 Gross major gift revenue ($1,000+) Average weekly CUME total FY2009 2010 2011 2012 2013 Number of major donors AQH persons total 10 Public Media Company 2013 Annual Report 11 “The loan program has been extremely helpful for Radio Bilingüe to maintain its stability these past three years. I want to thank PRF for the opportunity and service it provided to Radio Bilingüe. It truly helped us to maintain our national news and information services ­— like Línea Abierta and Noticiero Latino — and to take further risks in reaching new Latino audiences in the Southwest. Radio Bilingüe’s expansion of stations for underserved Southwest communities is almost complete.” Hugo Morales, Founder and Executive Director, Radio Bilingüe Ken Ikeda, Chief Strategist, Total commitment to date: The Public Radio Fund, established $8.9 million < in 2007, has utilized investment talks about funds from Calvert Social Investment Foundation, Ford Foundation, Channel X 2008 $0.6 Hull Family Foundation, Nonprofit Finance Fund, NPR, Inc., Woodcock finance 2009 $3.1 Foundation, Impact Assets and other

< individual investors to 11 different 2010 $6.3 public media organizations. Q. What is Channel X? Q. It seems that Channel X can create a new 2011 $7.7 A. It’s a content marketplace that connects way for stations and producers to relate. Do Loans from the fund have ranged producers to broadcasters. In the future, it will you see it that way? $8.8 2012 from $105,000 to $2.50 million, have the capacity to program and function as A. Definitely. A key concept is a new licensing and have aided organizations in a 2013 $8.9 a standalone channel service. In the near term, paradigm that will balance the rewards of success variety of ways. Channel X will allow broadcasters to discover, more equitably through non-exclusive terms. In

Numbers in millions license and broadcast individual media, subscribe addition, we are fully committed to a partnership innovation to content blocks and seek content to diversify their approach with producers and a revenue model core offerings through three verticals: news, film that will have expectations appropriate to how < and music. distribution and engagement strategies have Samuel Orozco, host of Linea changed. < Abierta and National News Q. What prompted the Channel X concept? and Information Director for A. The principal driver for us has been diversity. Q. When can we expect to see Channel X Radio Bilingüe, brings the There is a tremendous range of content now launch? program into the community. available that hasn’t been able to reach audiences A. We anticipate our first client stations to be through broadcast. There are a number of reasons signing on in May. for this but we believe that the diversity of today’s audiences, the wealth of terrific content being produced, and the availability of channels and programming space in public media, represents an opportunity for Channel X to add significant value. While content can be accessed through myriad devices and means, the broadcast space and partnership with public broadcasters remains important. Channel X hopes to engage new, diverse audiences as a complementary offering to PBS.

12 Public Media Company 2013 Annual Report 13 < Public Media Company’s separate 2013 Public Radio Fund Public Radio Fund financial statements are presented below. PMC’s overall financial positions continues Statement of Financial Position Statement of Activities to be solid with net assets in excess of $1.2 as of December 31, 2013 (in 000s) for the year ended December 31, 2013 (in 000s) million. In 2013, PMC earned revenue from more than 30 different clients. Over the Cash 2,091 REVENUE AND SUPPORT past two years grants totaling $150,000 Other Current Assets 10 Interest 114 from FJC: A Foundation of Philanthropic Current Note Receivables* 579 Fees 13 Noncurrent Note Receivables* 235 Funds, has enabled PMC to work with a Total Revenue and Support $127 Other Assets 2 wider range of clients to spur growth and innovation in public broadcasting. Total Assets $2,917 EXPENSE Interest 74 Current Liabilities 15 Loan Loss Reserve (132) Current Note Payables 300 Other Expenses 30 Noncurrent Note Payables 2,440 Total Expense $(28) Total Liabilities $2,755

Increase In Net Assets $155 Net Assets $162 Net Assets, Beginning of Year $7 Total Liabilities and Net Assets $2,917 Net Assets, *net of $185,000 loan loss reserve As of December 31, 2013 $162

Public Media Company (Parent) Public Media Company (Parent) Statement of Financial Position Statement of Activities as of December 31, 2013 (in 000s) for the year ended December 31, 2013 (in 000s)

Current Assets 631 REVENUE AND SUPPORT Board of Directors Advisory Council Staff Property and Equipment, Net 8 Earned Revenue 888 Teresa Bryce Bazemore, Public Radio Fund Marc Hand, CEO and Co-Founder Noncurrent Receivables, Net 567 Support 475 Philadelphia, Pa. Henry Cheng, Berkeley, Calif. Erin Moran, Chief Financial Officer Other Assets 101 Other 1 Carolyn Grinstein, Seattle, Wash. Roberto Colindres, Sao Paulo, Brazil and Chief Administrative Officer Total Assets $1,307 Total Revenue and Support $1,364 (Chair) Tim Doke, Dallas, Texas Ken Ikeda, Chief Strategist

Marc Hand, San Francisco, Calif. Dennis Hamilton, Managing Director Current Liabilities 32 Carolyn Grinstein, Seattle, Wash. Expense $1,321 (CEO) Khira Griscavage, Berkeley, Calif. Erik Langner, Managing Director Total Liabilities $32 Increase In Net Assets $43 Susan Harmon, Seattle, Wash. Evran Kavlak, Director, Consulting Fred Marienthal, Denver, Colo. Josh Mallamud, Chicago, Ill. and Research Net Assets – Unrestricted 1,024 Net Assets, Beginning of Year $1,232 Jan Nicholson, New York, N.Y. (Secretary/Treasurer) Terri Olsen, Accounting and Temp. Restricted Net Assets 251 Kimberly Swain Cantor, Net Assets, Fred Marienthal, Denver, Colo. Operations Manager Total Net Assets $1,275 As of December 31, 2013 $1,275 New York, N.Y. Leo Martinez, San Francisco, Calif. Louis Caputo, Financial and (Vice Chair) Research Analyst Total Liabilities and Net Assets $1,307 Jan Nicholson, New York, N.Y. Editor, Anne Benedict Hovland Design, Mary Brucciani

14 Public Media Company 2013 Annual Report 15 Mission Statement

Public Media Company’s mission is to maximize the relevance and impact of public media for all.

Our sincere thanks to all of the individuals, families and foundations that have supported the work of Public Radio Capital. We look forward to a bright future for Public Media Company and the mission we embrace for a strong public media in service to our nation.

5277 Manhattan Cir. Ste. 210 Boulder, CO 80303 P. 720 304 7274 F. 720 304 8923 [email protected] publicmedia.co