PBS TeacherLine Post Grant Plan August 19, 2010 Tim Taylor

Agenda Current Situation Process Changes – PBS Staffing – PBS Budget – Station Model – Course Prices – Revenue Share – Local Course Provider Fees Additional funding Next Steps Objective: Continue operating the TeacherLine program in a sustainable manner

Current Situation: Grant Purpose: 1.Resources and tools for coaches, mentors, professional learning communities 2.Promote and maintain existing courses $6.4 million / year Ended July, 31 1 year extension Grant funds subsidize course fees and revenue share

Current Situation: Program Revenue PBS Program Revenue: $1.5m (87% from course fees) PBS Program Expense – Salaries & Wages: $1.8m – Research & Evaluation: $1.6m – Payments to Stations: $1.4m – LIF: $900k – Revenue Share: $500k – Marketing: $900k – Facilitator Payments: $350k

Process TeacherLine directors explored several scenarios and arrived at three options for review Options: Station, marketing, balanced Presented options to: – 6 GMs, 4 consultants, Sr. PBS Mgmt Plan details 7/20 Rollout to staff Today - Rollout to stations

Changes to… PBS Staffing PBS Budget Station Model Course Prices Revenue Share Local Course Provider Fees

Assumptions No grant funds Enrollment drop 20% Graduate credit revenue drops 20% Flat Peer Connection and Course Licensing sales New course development covers own costs No new TeacherLine technical development Variables: Revenue: pricing, # of enrollments Expenses: staffing, revenue share, marketing

PBS Staffing Separate Course & PC business from grant 1. Course & PC Budget (6 staff) - Ongoing – Sr. Director – Facilitation and Community Mgr – Sr. Mgr Online Content – Sales & Support Rep – Tech Mgr – Assoc Director, Marketing/Sales Mgr 2. RTT Grant Budget – 1 person through 7/31/11 – Everyone else leaves on 12/31/10

PBS Budget Revenue$1.8m Expenses – Salaries, Benefits, R & U$653k – Revenue Share 417k – Sales & Marketing 387k – Fac. Payments & Comm. Mgmt 228k – Other 108k 101k (buffer) RTT Grant: $1.1m, 7/31/11 - Marketing

Timeline August 1 – Separate Course & PC business from grant – Focus on partnerships to increase course sales – Focus on course licensing and PC to increase revenue – Create a business advisory board January 1 – Raise course prices, reduce revenue share – Reduce course catalog – Simplify station model

Simplified Station Model Current Promo (10%) – promotion LCP (40%) – run courses SRC (40%) – protected territory & business plan

Simplified Station Model New 1. Participating TL station (20%) Promotion Develop Partnerships Reach & revenue goals Optional: Local Course Provider (Facilitation standards (i.e. minimum ed, training, mentoring, compensation) 2.State PD Coordinator (Additional $20/learner – local and nat’l) Coordinate station activities across state Contact w/ state DoEd PD office

Station Conversion Promo LCP SRC TL Station SC

Example: Idaho WXYZ WKRP WXYZ = TL Station (20% - their territory only) WKRP = TL Station & State Coordinator 20% - their territory only $20 per learner across all territories Open

Course Prices Increase regular course (15, 30 & 45hr) prices by $96 Courses starting after December 31 Offset grant subsidies Other Products - Peer Connection - Course licensing

Course Prices Changing CurrentNew ELL (10 Hr)$99$125 KERA: Read w/ Me (8 Hr)$99$125 Raising Readers (15 Hr)$129$145 Standard (15 Hr)$169$265 Standard (30 Hr)$199$295 Standard (45 Hr)$249$345 Same OFT (45 Hr)$525$525 Capstone ($495)$495$495 Capstone ($595)$595$595

Revenue Share %: SRC & LCP CurrentNew ELL (10 Hr)20%10% KERA: Read w/ Me (8 Hr)20%10% Raising Readers (15 Hr)20%10% Standard (15 Hr)40%20% Standard (30 Hr)40%20% Standard (45 Hr)40%20% OFT (45 Hr)40%20% Capstone ($495)40%15% Capstone ($595)40%15% TD (30 Hr)28%15% TD (45 Hr)28%15% Concord (30 Hr)22%15%

Revenue Share $: State Coordinator Current New % Change ELL (10 Hr)$20$33 64% KERA: Read w/ Me (8 Hr)$20$33 64% Raising Readers (15 Hr)$26$35 34% Standard (15 Hr)$68$73 8% Standard (30 Hr)$80$79 -1% Standard (45 Hr)$100$89-11% OFT (45 Hr)$210$125-40% Capstone ($495)$198$94-52% Capstone ($595)$238$109-54% TD (30 Hr)$56$64 15% TD (45 Hr)$70$72 3% Concord (30 Hr)$44$64 47%

Revenue Share $: LCP Current St Coord (or)TL Station ELL (10 Hr)$20 $33 $13 KERA: Read w/ Me (8 Hr)$20 $33 $13 Raising Readers (15 Hr)$26 $35 $15 Standard (15 Hr)$68 $73 $53 Standard (30 Hr)$80 $79 $59 Standard (45 Hr)$100 $89 $69 OFT (45 Hr)$210$125 $105 Capstone ($495)$198 $94 $74 Capstone ($595)$238$109 $89 TD (30 Hr)$56 $64 $44 TD (45 Hr)$70 $72 $52 Concord (30 Hr)$44 $64 $44

Revenue Share %: Promo CurrentNew ELL (10 Hr)10%10% KERA: Read w/ Me (8 Hr)10%10% Raising Readers (15 Hr)10%10% Standard (15 Hr)10%20% Standard (30 Hr)10%20% Standard (45 Hr)10%20% OFT (45 Hr)10%20% Capstone ($495)10%15% Capstone ($595)10%15% TD (30 Hr)10%15% TD (45 Hr)10%15% Concord (30 Hr)10%15%

Revenue Share $ Current New % Change ELL (10 Hr)$10$1330% KERA: Read w/ Me (8 Hr)$10$1330% Raising Readers (15 Hr)$13$1515% Standard (15 Hr)$17$53212% Standard (30 Hr)$20$59195% Standard (45 Hr)$45$6953% OFT (45 Hr)$53$10598% Capstone ($495)$50$7448% Capstone ($595)$60$8948% TD (30 Hr)$20$44120% TD (45 Hr)$45$5216% Concord (30 Hr)$20$44120%

Revenue Share: State Coordinator compared to PBS 15hr30hr45hr State Coordinator $73 $79 $89 PBS $68 $76 $98

Local Courses Assumptions: New course prices Class size = 15 learners Same costs as PBS * - Facilitator - eCommerce Goals: 1) Stations make same or more than current revenue 2) Revenue Equity: local vs. national enrollment *Excludes customer support costs

Local Course Fees: Revenue after PBS fees (per learner) Standard (15 Hr) New 112 Current $107 5 Standard (30 Hr) New 135 Current $132 3 Standard (45 Hr) New 178 Current $176 3

Local Course: Per Seat Fees Current New ELL (10 Hr)$40$100 KERA: Read w/ Me (8 Hr)$40$100 Raising Readers (15 Hr)$40$100 Standard (15 Hr)$40$100 Standard (30 Hr)$40$100 Standard (45 Hr)$40$100 TD (30 Hr)$40$100 TD (45 Hr)$40$100 Concord (30 Hr)$40$100

Local Course: Licensing Fees Current New ELL (10 Hr)$250$200 KERA: Read w/ Me (8 Hr)$250$200 Raising Readers (15 Hr)$250$200 Standard (15 Hr)$330$800 Standard (30 Hr)$400$900 Standard (45 Hr)$500$1,000

Local Course Fees: Revenue after PBS fees (per learner) Standard (15 Hr) New 112 Current $107 5 Standard (30 Hr) New 135 Current $132 3 Standard (45 Hr) New 178 Current $176 3

Secure Additional Funding Spend on: – Sales and marketing – Partnerships – New revenue generating products & services

Next Steps Notify facilitators, grad credit provider, course providers Modify tools and processes Create new station agreements