It's a risky decision indeed.
One of the questions we faced on a regular basis at Connecticut Public Radio was the high cost of National Programming. Was the programming really worth it? Could we cut our losses if we just cut a few of the really expensive programs like Car Talk or A Prairie Home Companion. It was even suggested briefly that Morning Edition was too costly. Couldn't we just cancel these programs to reduce our expenses? Surely there must be something almost as good that costs a lot less? If we do that can't we put some of the savings into local efforts?
Fortunately, we took a careful look at how our audience was using the station. I even wrote an article about it for Audience 98, Public Service Economics.
We used listener hours to determine how the audience was using our programming. We then compared revenue per listener hour against cost per listener hour to determine our return on investment. The three programs mentioned above generated a large portion of Connecticut Public Radio's listener hours. The costs per listener hour were more than offset by the way our listeners used the station.
For the sake of argument, suppose we took A Prairie Home Companion and Car Talk off the air to save $32,000 in 1998. Because those programs were carried by two other public radio stations, we would have lost most of those listener hours and the revenue they represented. In 1998 Car Talk represented about $68,000 in listener sensitive income. A Prairie Home Companion represented about $110,000 in listener sensitive income. Listener Sensitive Income is a combination of the revenue from listeners, local underwriters and local foundations. The combined return on investment was $106,000.
These numbers are a lot smaller than the $6.8 million in dues paid by KCET. The number of viewer hours represented by KCET audience is a lot larger than the 56 million listener hours generated by WNPR. KCET has probably put a lot of thought into their decision, but they are likely to lose several million viewer hours to the other PBS stations that serve the LA Basin. The drop in viewer hours will represent a drop in viewer sensitive income. The question is, did the viewer sensitive income offset the cost of the PBS programming?
Will the new local focus generate enough viewer interest to offset those costs?
We used listener hours to determine how the audience was using our programming. We then compared revenue per listener hour against cost per listener hour to determine our return on investment. The three programs mentioned above generated a large portion of Connecticut Public Radio's listener hours. The costs per listener hour were more than offset by the way our listeners used the station.
For the sake of argument, suppose we took A Prairie Home Companion and Car Talk off the air to save $32,000 in 1998. Because those programs were carried by two other public radio stations, we would have lost most of those listener hours and the revenue they represented. In 1998 Car Talk represented about $68,000 in listener sensitive income. A Prairie Home Companion represented about $110,000 in listener sensitive income. Listener Sensitive Income is a combination of the revenue from listeners, local underwriters and local foundations. The combined return on investment was $106,000.
These numbers are a lot smaller than the $6.8 million in dues paid by KCET. The number of viewer hours represented by KCET audience is a lot larger than the 56 million listener hours generated by WNPR. KCET has probably put a lot of thought into their decision, but they are likely to lose several million viewer hours to the other PBS stations that serve the LA Basin. The drop in viewer hours will represent a drop in viewer sensitive income. The question is, did the viewer sensitive income offset the cost of the PBS programming?
Will the new local focus generate enough viewer interest to offset those costs?
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