2. Sustainability at the National Level New DOE Grant Goals Sustainability Model Critical Levers Sustainability at the Local Level Critical Levers Scenario Planning Sustainability Model for Stations

3. US DOE grant was awarded in August 2005 PBS committed to annual enrollment and revenue targets in order to reach sustainability PBS developed a comprehensive financial model to assess progress Model forecasts inflows and costs Quarterly update and progress review Eduventures advises PBS TeacherLine on: Financial performance Progress towards sustainability New product pricing models New DOE Grant Goals

4. PBS National is committed to system-wide sustainability Enrollment and revenue goals were set to measure progress 20% increments over five years Local stations are critical Both PBS and local stations have influence National has indirect influence on increasing distribution and direct influence on controlling costs Local stations have direct influence on increasing distribution and indirect influence on controlling costs Sustainability Model

5. Enrollment Goals Note: GY01 is the first year of the new grant, 2005. GY05 = 2009-10. Includes both national and local enrollments.

6. Grant Year 1 Enrollments: Actual vs. Goal Actual program enrollments

7. Revenue Goals

8. Grant Year 1 Revenue: Actual vs. Goal Actual program revenue

9. Calculating Sustainability * Excluded: Program Grant Funding, Program Evaluation and Program Product Development Costs Program Generated Revenue543,103 Expenses2,349,315 Operational Sustainability *23% Enrollment Summary Local5,97362% National3,71738% Total9,690

10. Focus On Levers that Affect Program Revenue and Efficiencies LeverEffectHow to Move It Total Enrollment Increased total enrollment contributes directly to program revenue Enroll new learners, encourage repeat learners Course Fee Optimal pricing contributes directly to program revenue Minimize discounting to capture maximum value without losing learners Costs Reducing costs increases revenue contribution Look for efficiencies Course Size Increasing the average enrollment per course leads to more efficient (and more profitable) courses Effectively predicting course demand; migrate learners to alternate / national courses when not profitable to run Program Distribution Program Efficiency

11. Program Efficiency: Cost per Learner Facilitator62.6 Customer Support8 Hosting25 eCommerce6 Revenue Share80 Total$181 Revenue Contribution$18 Excludes Overhead costs

12. Sustainability at the National Level New DOE Grant Goals Sustainability Model Critical Levers Sustainability at the Local Level Critical Levers Scenario Planning Sustainability Model for Stations

13. Stations Have Direct Influence on Program Distribution Stations have the ability to considerably impact TeacherLine program distribution and efficiency The main levers for distribution are: Lever 1: Course fees Lever 2: Total enrollments Program efficiency is driven primarily by: Lever 3: Average course size

14. Lever 1: Raising Course Fees 10% Scenario 1: 10% Course Fee Increase Projected Course Fees (Local) $156 Average Enrollment (Local) 187 Projected Revenue$29,172 Summer 2006 Actuals Average Course Fees (Local) $142 Average Enrollment (Local) 187 Average Revenue$26,554 Difference: $2,618 Note: Summer 2006 Actuals represent the average station course fee and enrollment in Summer 2006

15. Lever 2: Raising Enrollment 10% Summer 2006 Actuals Average Course Fees (Local) $142 Average Enrollment (Local) 187 Average Revenue$26,554 Scenario 2: 10% Enrollment Increase Average Course Fees (Local) $142 Projected Enrollment (Local) 205 Projected Revenue$29,110 Difference: $2,556

16. Average Course Size* 131517 Course Costs**$1,885$1,975$2,065 Costs per Learner $145$132$121 * Average Course Size was calculated for locally provided courses. Spring 2006 local courses averaged 17 learners per class and Summer 2006 averaged 13 learners per class. **Course Costs include Facilitator, Course Licensing Fee, Per Seat Fee and eCommerce Fee Lever 3: Increasing Class Size

17. PBS National Sustainability Progress

18. Local Sustainability Model PBS is proposing to develop a template to help stations assess progress The template will be based off the national model and will include: Revenue projections Operating costs Course size breakeven chart Progress towards sustainability Similar to national model, it will not include: Overhead Fees (personnel, any in-kind) Local Innovation Funds Would this be helpful?