SRG 2016 Retreat NPR | Member Station Compact

Roger LaMay Tim and Dave Tom and Terry Overview and timeline Work over the past year SRG draft proposal: principles SRG draft proposal: business concepts NPR current options Tom and Terry SRG member fees now What would happen with TSR – Group discussion

Since 1987 NPR members have held the principal responsibility for NPR’s financial support: In FY 2015 $76.9mm Member dues and program fees 5.2mm Digital services fees 3.1mm Interconnection fees 42.0mm Broadcast sponsorships Collaboration in the cultivation of philanthropic gifts

In recent years Flattening in broadcast audiences Increased digital use Increasing share of station revenue concentrated in organizations with significant scale

SRG’s ambition A plan that Ensures stability of NPR current services and capacity to invest in future strategic priorities Strengthens stations’ capacities to provide community news and a live, local presence Drives aggressive growth in the use and impact of digital content from NPR and stations Promotes continued development and sharing of digital services and products

SRG’s ambition A financial model that addresses our disparate financial circumstances, helps us transform to meet the challenges of our digital future, and aligns NPR and stations to protect and propel our collective growth.

Toward a business model Increase basic membership dues Continue indexing news magazine fees to the use of NPR programming Increased financial responsibility for stations with the largest audiences Share NPR’s digital sponsorship revenue Leverage NPR’s digital footprint to feature and promote members’ digital offerings Collective effort to increase individual giving

NPR’s current models A tiered model Shared revenue Low-cost offering of content and services for small budget stations Various packages of content and services for larger budget stations Shared revenue Fees tied to “listener sensitive” revenue Raise fees by a set percentage each year

SRG members will pay $32. 5 million of $83 SRG members will pay $32.5 million of $83.2 million in NPR member station payments – 39% of the total

NPR | Member Compact