2. What is the Definition of Sustainability? A) Covering expenses with TeacherLine programs generated revenue B) Covering expenses with program generated revenue and non- DOE grant funds C) Covering expenses with products made from renewable forest products. D) Covering expenses with revenues made from sustainable fish farms

3. What is the Definition of Sustainability? A) Covering expenses with TeacherLine programs generated revenue B) Covering expenses with program generated revenue and non-DOE grant funds

4. Sustainability at the National Level DOE Grant Goals Progress on National Sustainability Critical Levers Sustainability at the Local Level Introduction to Local Sustainability Model Critical Levers for GY03

5. Department of Education grant was awarded in August 2005 to support the TeacherLine program Eduventures was hired to advise PBS and TeacherLine on: Financial performance Progress towards sustainability New product pricing models PBS and Eduventures developed a comprehensive financial model to assess progress towards sustainability Model forecasts program inflows and costs required for sustainability Each quarter the model is updated with actual results and efforts to meet sustainability are assessed and monitored Sustainability Goals Were Set As Part of DOE Grant

6. PBS National is committed to achieving sustainability system-wide Enrollment and revenue goals were set to measure progress Goal is to move towards revenue sustainability in increments of 20% over five years Local stations are critical in meeting those goals Both PBS and locals stations have influence on how those goals are met 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 TeacherLine is Focused on Sustainability at Both National and Local Levels

7. Progress Look for efficiencies and scale Lowers program costsExpenses Effectively predict course demand; migrate learners to alternate courses or national courses when there is not sufficient local course demand Increasing the average enrollment per course leads to more efficient (and more profitable) courses Course Size Minimize discounting to capture maximum value without losing learners Optimal pricing contributes directly to program revenue Average Course Price Enroll new learners, encourage repeat learners Increased total enrollment contributes directly to revenue Total Enrollment How to Move ItEffectLever Program Distribution Program Efficiency Progress is Being Made On Levers that Affect Program Distribution

8. GY 2 Enrollments Were Up Almost 11% Over GY 1

9. Average Course Price for GY02 Was $185, Compared to $176 in GY01

10. Average Course Size GY02 Was 15, Compared to 16 in GY01

11. Last Year, Program Sales Were Estimated and Only Included Enrollment Fees

12. Actual Program Sales Tell a More Accurate Story

13. Two Years Into the Grant, a Revised Goal is More Realistic

14. Calculating Sustainability at the National Level: A Snapshot * Excluded grant carry forwards and Program Evaluation costs from sustainability calculation

15. Sustainability at the National Level DOE Grant Goals Progress on National Sustainability Critical Levers Sustainability at the Local Level Introduction to Local Sustainability Model Critical Levers for GY03

16. A Local Sustainability Model is in Development! PBS National and Eduventures are developing a sustainability model for use at the local station level The model is based off the National model and will include station specific information such as: Program inflows Program expenses Program metrics Progress towards sustainability Similar to national model, it will NOT include: Overhead Fees (i.e., rent, utilities, etc) Local Innovation Funds

17. Purpose: To provide an annual picture of sustainability at the station level Audience: Any SRC, local course provider or promotional station Requirements: Program inflows and program expenses Next steps:Currently being tested with station data, revised version ready by early November. Will be used on an annual basis in GY03 and optional move to quarterly basis in GY04 Local Model Will Provide an Annual Picture of Sustainability

18. Calculating Sustainability at the Local Level: A Case Study * Excluded DOE grant from sustainability calculation

19. Local Stations Have Direct Influence on Program Distribution Similar to the National level, local stations have the ability to have a considerable impact on TeacherLine program sales and efficiency at the local level The main levers for sales are: Lever 1: Course fees Lever 2: Total enrollments Program efficiency is driven primarily by: Lever 3: Average course size

20. There Are Alternate Ways to Increase Program Sales Repeat learners are a cost-efficient way to increase overall enrollments. Factors that contribute the most to learners returning are: Setting expectations for success Enrollment experience Course experience Customer support Course licensing and Peer Connection Lower expenses (no facilitator fees, no course platform costs and no e-commerce fees) Reduced post-sales management Minimal customer support costs

21. Over Fifty Percent of Learners Have Enrolled in More than One Course… Fifty-four percent of enrollments have come from repeat learners Twenty-three percent of enrollments are from learners enrolled in two courses Thirteen percent of enrollments are from learners enrolled in three courses

22. Progress Course Size Average Course Price Total Enrollment GY02GY01 Lever Program Distribution Program Efficiency A Look Back: Progress is Being Made On Levers % Change 8,850 9,786 11% $176 $185 5% 16 15 -6%

23. How Many Letters Are in the Word “Sustainability”? Sustainability is not a four-letter word!!