Distribution in Broadcast Television: A Closer Look at WCNY

Source: wcny.org

 

Background and Management

In 1965, the New York State Department of Education launched WCNY and for the last fifty years, it has served as a voice for the community in central New York. The PBS member-supported affiliate was solely known as the “education station” but it has grown into including five digital channels that reach over 1.8 million people (“About WCNY,” n.d.). This nonprofit organization now resides in Syracuse’s Westside and is home to an experiential learning center, two large studios, multiple production suites and owns Joint Master Control Operating Co., which handles program distribution for all the New York and New Jersey broadcasting companies.  

Robert J. Daino has served as President and CEO of the station since 2005 and received multiple awards for his leadership that led to an increase in viewership and engagement. Along with the CEO, there are five other senior leadership members that serve the station. This team includes the Vice President of Content Production & Delivery, Jim Aroune who provided some insight on WCNY for this profile.

Business Model

In order to distribute the national content from PBS, and remain as an affiliate, WCNY has to pay membership dues every fiscal year. Other local broadcast stations that have network affiliates pay for programming through advertisements but, as a noncommercial station, WCNY must find a little under a million dollars to stay in good graces with PBS. Turow (2017) explains that noncommercial stations gain support in the form of donations in return for billboards. These billboards mention a sponsor’s name at the beginning of the program, and when a company pays to support a non-commercial station it’s known as underwriting (Turow, 2017). This business model of membership dues has forced other PBS affiliates throughout the country to end their contracts and sell the stations to other programmers (Jensen, 2011).  For now, the local broadcast station in Central New York seems safe from shutting its doors, but there is no question that the model seems unsustainable in a vastly competitive market.

Assets

While WCNY does distribute and broadcast national programs from PBS, it also produces its own in-house programming. These local programs include Double Down, Financial Fitness, Ivory Tower, Artifex, and Insight. The last of which Jim Aroune hosts, who helped the station receive its first Emmy Award in 2013 for this weekly public affairs show.

With a mission and reputation based on education, it would only make sense that one of the five channels that are under the umbrella of WCNY is the new WiCkNeY Kids. This 24/7 channel serves young children and families by providing non-violent and stimulating programing. Children can view the shows on this platform during high viewing periods while adults can watch regular programming on another WCNY channel (“WCNY TV Channels FAQ, n.d.).

Along with the station’s regularly scheduled programming, WCNY reaches consumers through “Enterprise America.” This 10,000-square foot learning center is estimated to serve more than 2,000 students every year (“About WCNY,” n.d.). It’s a hand on learning experience that teaches students about government and running local businesses.

Revenue Model

“WCNY is made possible by viewers and listeners like you.” Any consumer of public television or radio is familiar with this slogan, and the truth lies in the station’s financial statements.

Fust Charles Chambers LLP, 2016

As seen in the pictures, most of the revenue comes to the station in the form of membership fees. Its membership program has a variety of services that divide into different levels. Each level has a color and ranges from $5 a month for blue, to $250 a month for platinum. Most notable in its services are the member site and passport function that allows the consumer to access special content and stream it online. Along with membership fees, the broadcast station also receives grants and special funding that aid in operating expenses.

Fust Charles Chambers LLP, 2016

Another long-standing tradition of public television is the annual pledge drives that seek to raise money, but when Robert J. Daino took over in 2005 he swore to put an end to this form of fundraising. In 2007, the president’s promise was upheld and it added more than 300 hours of additional content to the airwaves (Brinkmoeller, 2015). To Daino, viewers are the stations’ shareholders and he found it unusual that he would treat them to the unrelenting begging for more money that takes place during pledge drives (Brinkmoeller, 2015).

Threats & The Future

In March of 2017, President Trump announced a budget proposal that would eliminate funding for the Corporation for Public Broadcasting. Typically, the Federal Government appropriates $445 million each year to CPB which directly supports local stations, such as WCN (Saad, 2017). Without that monetary support, public broadcasting would begin to decline rapidly. Luckily, subcommittees in the U.S. House of Representatives approved an appropriation bill that would continue to fully fund not only the Corporation of Public Broadcasting but also the National Endowment of the Arts (NEA) and the National Endowment for the Humanities (NEH) (BWW News Desk, 2017).

The budget proposed by President Donald Trump received criticism for not having any real chance of being passed through Congress, but the proposal highlighted public broadcasting’s vulnerability. WCNY would not exist without its loyal members who fought for its right to remain on the airwaves. When asked about other challenges the station will face in the future Jim Aroune stated, “Every public broadcaster is challenged with reaching the next audience. Converting the experience of public broadcasting into an on-the-go, digital platform presentation becomes the challenge. In the end, we’re excited to meet it” (J. Aroune, personal communication, September 21, 2017).  It’s a challenge that many distributors are facing and the world is waiting to see what happens next.

References

About WCNY (n.d.). Retrieved from http://www.wcny.org/about-us/

Aroune, J (2017). Personal Communication. September 21st.

Brinkmoeller, T (2015). How One PBS Station Swore Off Pledging and Made More Money. TV Worth Watching. Retrieved from http://www.tvworthwatching.com/post/How-One-PBS-Station-Swore-off-Pledging-in-2007.aspx

BWW News Desk (2017). House Subcommittees Defy Trump’s ‘Skinny Budget’ with Funding for NEA, NEH & CPB. Broadway World. Retrieved from https://www.broadwayworld.com/article/House-Subcommittees-Defy-Trumps-Skinny-Budget-with-Funding-for-NEA-NEH-CPB-20170713

Fust Charles Chambers LLP (2016). The Public Broadcasting Council of Central New York, Inc: Consolidated Financial Statements and Other Financial Information. Retrieved from http://www.wcny.org/about-us/policies/

Jensen, E (2011). Burdened by PBS Dues, Stations Consider Withdrawing. New York Times. Retrieved from http://www.nytimes.com/2011/05/23/business/media/23pbs.html

Saad, N (2017). PBS and the Corporation for Public Broadcasting push back on Trump’s proposal to defund. Los Angeles Times. Retrieved from http://www.latimes.com/entertainment/tv/la-et-st-pbs-cpb-npr-trump-budget-cuts-20170316-story.html

Turow, J (2017). Media Today: Mass Communication in A Converging World. New York, NY: Routledge.

WCNY TV Channels FAQ (n.d.) Retrieved from http://www.wcny.org/wcny-tv-channels-faq/

This entry was posted in Broadcast Television. Bookmark the permalink.