business overview - Arizona Public Media

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business overview - Arizona Public Media
BUSINESS OVERVIEW
AZPM At-A-Glance | page 0
ORGANIZATIONAL PROFILE
AZPM is a member-supported, non-profit public media
organization that serves all of Southern Arizona. AZPM includes
six public television channels and three radio services, including
NPR 89.1, Classical 90.5 and the BBC World Service.
AZPM produces award-winning content from its digital studios on
the campus of the University of Arizona (UA) and is provided as a
community service and educational resource. AZPM is an
operating unit of the University, but, since its inception in 1959,
maintains editorial independence from the institution. The
Arizona Board of Regents holds the FCC license for AZPM’s broadcast stations. See Appendices I and II for more
information about the history of AZPM as well as details regarding the public media funding model.
Television
KUAT and KUAS television stations are Public Broadcasting Service (PBS) affiliates and are broadcast via two digital
transmitters that cover a broad portion of southeastern Arizona. Both stations provide a constant stream of PBS highdefinition (HD) programming 24-hours a day, seven days a week on PBS 6 (Channels 6.1 and 27.1). They are also the
only two locally owned and operated television stations in Tucson.
In addition, AZPM offers four discrete standard definition program services, ReadyTV and V-me on KUAT, and PBS Kids
and WORLD on KUAS. AZPM also manages and operates the UA Channel, which features a diverse mix of PBS titles,
community programs, as well as University of Arizona-related lectures and events.
Radio
AZPM has two radio stations, KUAZ-AM/FM and KUAT-FM. Via three full-power transmitters and five translators, these
stations reach listeners throughout Southern Arizona. KUAZ-AM/FM (NPR 89.1) broadcasts National Public Radio (NPR)
during the day. While the AM station is limited to sunrise-to-sunset operations, NPR 89.1 broadcasts 24-hours a day.
During the evening hours, the station provides jazz music programming, followed in the early morning hours by the
BBC’s overnight World News Service. KUAT-FM (Classical 90.5) is the region’s only classical music format radio station.
It broadcasts 24-hours a day, and also provides locally produced newscasts.
Strategic Objective
AZPM’s mission is to inform, inspire and connect our community by bringing people and ideas together. An extension
of this mission is AZPM’s commitment to producing local, original content for and about the people of Southern Arizona
and the University of Arizona. AZPM is one of a handful of public stations in the country producing original local content
on multiple platforms on a daily basis. Few American academic institutions have media assets that compare with that of
The University of Arizona. While some have radio or television operations, few enjoy the benefits of multiple radio and
television services. See Appendix III for a complete listing of public media organizations in
Arizona.
AZPM excels at its mission of producing exceptional local, original programming. In October
2014, AZPM’s staff won 22 won Rocky Mountain Emmy® Awards for 15 AZPM
productions. This was a record number of wins for AZPM in a single year and AZPM staff
received more awards than any other broadcaster in Southern Arizona and more than any
other public broadcaster in the region.
AZPM At-A-Glance | page 1
Staffing
AZPM has a professional staff of 83 who work in a variety of
roles, including on-air talent, programming and production,
engineering and technology, journalism and reporting,
underwriting, marketing, and fundraising, among others. AZPM
also employs approximately 30 students who work to gain onthe-job training in radio, television, marketing and other media
functions, working alongside AZPM’s professional staff. AZPM
also hosts student interns and journalism apprentices each
semester.
AZPM has an active Community Advisory Board (CAB),
comprised of citizens who represent the diverse needs and interests of the communities AZPM serves. The CAB advises
AZPM management and the University on a variety of issues of importance to their respective communities,
participates in community relations and fundraising activities, and guides the strategic planning process for the
organization. Last, but certainly not least, AZPM has a dedicated team of 200+ volunteers who give tirelessly of their
time and skills to assist AZPM in a wide variety of functions.
COVERAGE MAP
PURPLE = KUAZ-FM 89.1 (NPR)
RED = KUAT-TV Channel 6
(PBS 6, ReadyTV and Vme)
PINK = KUAZ-AM 1550 (NPR)
GREEN = KUAS-TV Channel 27
(PBS 6, WORLD and PBS Kids)
BLUE = KUAT-FM 90.5 (Classical)
AZPM At-A-Glance | page 2
ORGANIZATIONAL STRUCTURE
AZPM At-A-Glance | page 3
BROADCAST ASSETS / TELEVISION
PBS 6
Programs
PBS Kids
WORLD
ReadyTV
Vme
UA Channel
Non-fiction programming
featuring documentary,
science, and domestic and
world affairs programming.
How-to and Life-long Learning
Programming
Spanish-language news,
information and educational
PBS titles, community affairs
programs, lectures, and
events from the campus of the
University of Arizona.
Viewers: 33,972*
Viewers: 17,604*
Viewers: 25,571*
Audience: N/A*
Audience: N/A*
KUAT-TV/KUAS-TV
KUAS-TV
KUAS-TV
KUAT-TV
KUAT-TV
N/A
Professional: 42.75 FTE
Professional: 0
Professional: 0.02 FTE
Professional: 0.05 FTE
Professional: 0
Professional: 0.25 FTE
Students: 23
Students: 0
Students: 0
Students: 2
Students: 0
Students: 6
Interns/Apprentices: 3
Interns/Apprentices: 0
Interns/Apprentices: 0
Interns/Apprentices: 0
Interns/Apprentices: 0
Interns/Apprentices: 0
National: Public Broadcasting
Service (PBS)
Local: Arizona Illustrated ;
Metro Week ; Arizona Week ;
Documentary productions (13/year)
Cumulative Weekly
Monthly Audience: 219,220 HH*
Audience
Weekly: 189,480 viewers
Tucson-Sierra Vista
Educational programming
for children, ages K-12
National Ranking:
Market: 438,440 TV
#1 Prime Time Audience*
Households (HH)
#2 full-week audience*
Call Sign(s)
Staffing
Volunteers: 0
Volunteers: 0
Volunteers: 216
Volunteers: 0
Volunteers: 0
Volunteers: 1
Broadcast: 6-3
Broadcast: 6-2
Broadcast: N/A
Broadcast: 6.1 & 27.1 (HDTV)
Broadcast: 27-2
Broadcast: 27-3
Comcast
CATV: Cox 6 and 1006 (HD) CATV: Cox 80 | Comcast 200 CATV: Cox 83 | Comcast 203 CATV: Cox 82 | Comcast 201 CATV: Cox 81 | Comcast 202 CATV:
CATV: Cox
Cox 116
116 and
| Comcast
76
Comcast 6 and 220 (HD)
DBS: N/A
DBS: N/A
DBS: DirecTV 440 | Dish 9414
DBS: N/A
DBS: N/A
Channel
DBS: DirecTV 6 | Dish 6
Annual Budget - FY 14
Broadcast Operations $
Program Acquisition $
Local Productions $
3,760,123.00 $
1,405,000.00 $
-
2,720,428.00
n/a
-
$
$
1,302.00 $
5,750.00 $
$
$
Capital Equipment $
954,832.00 $
14,540.00 $
14,960.00 $
14,540.00 $
TOTAL: $
8,840,383.00 $
14,540.00 $
22,012.00 $
17,796.00 $
14,460.00 $
Southern Arizona: Pima,
Central and Northwest Tucson Central and Northwest Tucson
Cochise, Santa Cruz, Pinal and
and the Catalina Foothills
and the Catalina Foothills.
portions of Maricopa counties.
n/a
-
n/a $
14,460.00 $
Geographic Range
n/a
3,256.00 $
$
Southern Arizona: Pima,
Cochise, Santa Cruz, Pinal
and portions of Maricopa
County
Southern Arizona: Pima,
Cochise, Santa Cruz, Pinal
and portions of Maricopa
County
3,256.00
11,978.00
28,684.00
13,450.00
City of Tucson
(CATV HH within city limits)
* Nielsen Media Research, Novemb er 2013
AZPM At-A-Glance | page 4
BROADCAST ASSETS / RADIO
NPR 89.1
Classical 90.5
National: NPR news, BBC World Service ,
Programs
Classical music programming from American
Jazz music
Public Media (APM) and Public Radio
Local: Arizona Spotlight (52 x :30/year),
International (PRI), WFMT and others.
23 daily newscasts
Community concerts (52 x :90/year),
6 daily newscasts on weekdays
Audience
est. 850,200 total metro
population
Call Sign(s)
Staffing
Channel
Weekly Cumulative Audience: 108,300*
Weekly Cumulative Audience: 40,500*
Market (AQH) Share: 5.1*
Market (AQH) Share: 2.8*
Market Rank: 5th **
Market Rank: 13th **
KUAZ (AM), KUAZ-FM & KUAZ-FM HD-2
KUAT-FM, KUAT-FM HD2
Professional: 18 FTE
Professional: 12.7 FTE
Students: 0
Students: 1
Interns/Apprentices: 0.5
Interns/Apprentices: 0.5
Volunteers: 87
Volunteers: 87
1550 AM Tucson
90.5, 90.5 HD-2, 89.7 FM Tucson
89.1 FM & 89.1 HD-2 Tucson
89.7 FM Sierra Vista
91.7 Sierra Vista
91.1 FM, Nogales
88.9 (Construction Permit)
89.5 FM, Safford
88.9 FM Bisbee
Annual Budget - FY 14
Broadcast Operations $
1,444,069.00 $
773,995.00
Program Acquisition $
506,000.00 $
159,000.00
Local Productions $
Capital Equipment $
685,004.00 $
471,737.00 $
267,993.00
315,158.00
TOTAL: $
3,107,810.00 $
1,516,146.00
Geographic Range
KUAZ(AM): Southern Arizona from southern
Phoenix to Mexico border.
KUAZ-FM: Central Tucson and Sierra Vista
Southern Arizona: From Scottsdale to Nogales
including Tucson, Safford, Sierra Vista, and
Bisbee
* Total Survey Area Cume, Persons 12+, Mon-Sun 6A-Midnight, Fall 2013, Produced b y RRC from Data ® 2013 Nielsen Audio, Inc.
** Metro AQH Share, Persons 12+, Mon-Sun 6A-Midnight, Fall 2013, Produced b y RRC from Data ® 2013 Nielsen Audio, Inc.
AZPM At-A-Glance | page 5
ANNUAL BUDGET
Use of Fund Balance 3%
2015 Revenue Breakdown by Source
Source
Percentage
Amount
State Allocation (UA)*
19%
$
2,360,329.91
Donated Facilities (UA)
16%
$
1,987,646.24
Federal Allocation (via CPB)
11%
$
1,366,506.79
Membership (gifts to $999.99)
26%
$
3,229,925.14
Major Gifts (gifts $1,000+)
6%
$
745,367.34
Program Underwriting
10%
$
1,242,278.90
Other Gifts
4%
$
496,911.56
Auxiliary (Revenue from production services, etc.)
3%
$
372,683.67
Capital Grants & Gifts
2%
$
248,455.78
Used Fund Balance
3%
$
372,683.67
100%
$ 12,422,789.00
*The amount of the state allocation will decrease by $400,000 each year until 2019.
(FY16 = $1,960,330; FY17 = $1,560,330, FY18 = $1,160,330, FY19+=$760,330)
2015 Expense Breakdown by Source
Source
Percentage
Amount
Programming, Production, Promotion and Broadcasting
75%
$
9,317,091.75
Fundraising & Membership
15%
$
1,863,418.35
Management & General (CPB/FCC/UA Compliance)
10%
$
1,242,278.90
100%
$ 12,422,789.00
AZPM At-A-Glance | page 6
SWOT ANALYSIS
Strengths
 Strong local community engagement.
 Exceptional reputation for journalistic and production excellence.
 Professional production capabilities that are frequently leased to generate income to support local
production activities.
 Locally produced news, public affairs, documentary and feature programming that includes UA-based
research projects and technical innovations created by members of the UA community.
 Wide reach not only locally, but globally via a strong online presence that includes a robust website with
video-on-demand capabilities, a YouTube channel filled with AZPM stories and an active and growing
social media presence.
 Media resources to assist the UA in communicating its message and advancing its strategic initiatives.
 Stations are consistently top ranked. PBS 6 is among the Top 10 PBS stations nationwide in terms of prime
time viewership; NPR 89.1 is rated at Tucson’s #1 news/talk radio station.
 Growing underwriting and major gifts base.
Weaknesses
 Federal Communications Commission (FCC) restrictions on non-commercial, educational stations prevent
AZPM from selling ad space in the same manner as commercial entities.
 Revenue stream is largely dependent on donations from the public and is greatly influenced by the
strength of economy.
 Newsrooms are inherently expensive to operate, with no direct, straight-line impact on revenue.

AZPM operates in a very competitive high-technology environment requiring regular investment in
content and technology resulting in high annual capital investment needs. See Appendix IV for more
information about AZPM’s capital investment needs.

Physical and infrastructure restraints imposed by a broadcast facility designed to house a single television
station in the early 1960s (and now home to six video content streams, three radio content streams, and
an online and new media division) limit staff recruitment and growth as well as radio, television and online
production capabilities.
Opportunities
 Potential for major audience, thus underwriting and supporter, growth both in television and radio.
 Revenue stream is largely dependent on donations from the public and is greatly influenced by the
strength of economy.
 With capital improvements to AZPM’s facilities, the organization could take on additional fee-for-service
and other entrepreneurial business operations.


As news media organizations continue to consolidate, there are fewer local journalism/news competitors.
Develop future journalists and media professionals.
Threats
 Continued cuts to state appropriations for Universities could result in additional cuts to AZPM’s allocation.
 Economic pressures affect donor, foundation, underwriting and other forms of financial support.
 Reductions in federal funding would limit AZPM’s ability to leverage donated funds to produce and acquire
content, and to provide other community educational media services that generate individual donor
support, which is a major source of funding for AZPM.
AZPM At-A-Glance | page 7
APPENDICES
APPENDIX I: HISTORY
For more than 90 years, the University of Arizona (UA) has been home to broadcast media designed to serve the
community. From an experimental AM radio station started by UA students in the early 1920s to the multiple
radio, television, and online assets – some of which could not have been envisioned even 20 years ago – UA,
through AZPM and its precursors, continues to provide public media services that educate, inform and enhance the
lives of Southern Arizonans. AZPM offers valuable hands-on learning opportunities for academic interns, journalism
apprentices and student employees. Additionally, it provides much-needed expertise and technical support for
various UA colleges and departments to communicate the importance of their work and how it impacts lives.
APPENDIX II: THE PUBLIC MEDIA FUNDING MODEL
State colleges and universities operated the earliest public broadcasting stations in the U.S. – which were limited to
radio at that time – often as part of their cooperative extension services. Funding for station operations was
generally provided internally with no reliance on listener contributions. Some stations also sold advertising, now
illegal, as regulations for the operation of public stations had yet to be codified by the federal government. The
notion of non-commercial educational stations first appeared in the 1940s, coinciding with the establishment of the
FM band. The first U.S. public television station was the University of Houston’s KUHT, which commenced
broadcasting in 1953. AZPM’s first public station was KUAT-TV, which signed on the air in 1959.
The current funding model for public media organizations was established by the Public Broadcasting Act of 1967.
As part of the Act, Congress created the Corporation for Public Broadcasting (CPB). CPB is not a government agency,
but promotes public telecommunications services for the American people. Congress funds CPB, which in turn
invests in more than 1,000 local radio and television stations that reach virtually every household in the country.
Stations apply for CPB funding on an annual basis and, if they qualify, are granted funds to be used over a two-year
period. Stations are awarded funds based on their service to the community and their ability to generate their own
non-federal financial support. In other words, CPB rewards stations with increased funding based on local fundraising
capabilities. Therefore, all local, non-federal support dollars are leveraged to generate more funding from CPB. By
far the largest single source of public media funding is individual donor support – dollars contributed by listeners,
viewers and users of online services.
APPENDIX III: PUBLIC MEDIA ORGANIZATIONS IN ARIZONA
Public Media Organizations in Arizona
Institution
University of Arizona
Market
TV
CATV
Radio
Online
Arizona State University
Maricopa Community College
Northern Arizona University
Phoenix
Phoenix
Flagstaff
Tucson
KUAT 6.1
PBS
KAET 8.1
PBS
KUAT 6.2
V-me
KAET 8.2
EIGHT Life
KUAT 6.3
ReadyTV
KAET 8.3
EIGHT World
KUAS 27.1
PBS
KUAS 27.2
PBS Kids
KUAS 27.3
WORLD
Cox 116
UA Channel
Comcast 76
UA Channel
KUAT-FM
Classical 90.5
KBAQ-FM
Classical 89.5
KPUB-FM
Classical 88.7
KUAZ-AM
NPR 89.1
KJZZ-FM
NPR 91.5
KNAU-FM
NPR 91.7
KUAZ-FM
NPR 89.1
azpm.org
radio.azpm.org/classical
kjzz.org
kbaq.org
knau.org
tv.azpm.org
radio.azpm.org/kuaz
azpbs.org
eight.org
AZPM At-A-Glance | page 8
APPENDIX IV: AZPM’S CAPITAL INVESTMENT NEEDS
Unlike many other units at the UA, AZPM operates in a highly competitive and a high-tech environment, requiring
continuous investment in technology. In the days of analog broadcasting, technology had a much longer lifespan
and, with proper care and maintenance, equipment could last well beyond the manufacturers’ supported lifespan.
As an example, AZPM’s Green Valley video switcher, which was retired in 2010, was used over the course of 27 years
whereas the replacement digital switcher has an expected lifespan of just 10-12 years maximum.
Much of today’s digital infrastructure relies on computer servers and other IP hardware and software components
that have a much shorter shelf life. Regardless of how well maintained this equipment is, it will be unserviceable in
just a few years’ time. In 2006 and 2007, AZPM reserved approximately $100K per year for capital equipment. Today,
AZPM spends upwards of 5% of revenue annually on capital refresh (FY2014 = $1,243,932; FY2015 = $1,460,357).
In the past, federal grants were available to support the technological infrastructure of public media organizations
through the National Telecommunications Information Agency (NTIA) and its Public Telecommunications Facilities
Program (PTFP) program. Since being phased out of the federal budget several years ago, public media organizations
have relied on local capital fundraising efforts to support ongoing capital equipment refresh programs.
Over the past decade, AZPM has invested nearly $10 million in technological upgrades. This has enabled AZPM to
provide reliable high-quality programs and signals to audiences while at the same time taking advantage of
operational cost savings available with new technologies.
Top 10 Capital Item Expenditures FY2015
Rank
Area
Asset
Project
1
Production
TV
Warranty for XSAN Servers
$
30,000.00
2
Production
TV
Mac Pro HDTV Editing Stations
$
60,000.00
3
Production
TV
SAN Back-up Storage
$
30,000.00
4
Production
TV
Phoenix Flash Studio
$
34,290.00
5
Master Control
Radio/TV
Aux Air Conditioning
$
95,000.00
6
Production
TV
Primary HD Camera Lens
$
50,000.00
7
Master Control
TV
TV Automation/Storage Replacement
$
617,000.00
8
Transmission
Radio/TV
KUAS-FM (NPR) Sierra Vista Project
$
280,000.00
9
Production
TV
Lighting Instruments & Dimmers: Studio C
$
13,500.00
Studio/Production
Radio/TV
Radio Studios/Prod Rooms Renovation (est.)
$
383,580.00
10
Cost
$ 1,593,370.00
AZPM At-A-Glance | page 9