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Recently, Robert Paterson pointed out a Diane Mermigas piece talking about shifts in the advertising market, especially in relationship to network TV sales. According to the Mermigas analysis, network TV stands to lose up to $1.5 billion during this season of “up fronts” alone. That’s a lot of dough for any industry to lose nearly overnight, even if it is spread across several mega-media corporations.

I commented on Paterson’s site, but realized I liked my response so much I wanted to elevate it to my own blog in the process. Here’s Paterson’s question and my own response:

Is this the problem stated in Money terms?
Here is Diane Mermigas talking about the commercial networks — is this the same for NPR and PBS?

I would say Public Media are not impacted as directly by advertising losses like this, nor do the losses/impacts happen in phase with commercial media.

But the losses are there or soon will be (depending on the size and sophistication of your advertising clients).

But what’s worse — much worse — is that revenue from advertising (sponsorship!) is not managed as professionally in public media as it is in commercial media. This means that trends in ad spending are not understood as well in public media as they are elsewhere. So as changes ripple through the ad space, public media won’t figure it out for several cycles. Blunted reaction times will lead to lost opportunity and lost money.

Commercial outlets have a firm, financial bottom line and they calculate where that line lies every day, every week, every month, every quarter. Public media is not so fastidious. Our bottom line is the soft concept of “public service” (imagined in many different ways) and revenue is only a means to that end. We don’t have hard measures of public service, we don’t analyze so deeply or accurately, as a group (I’m sure there are some exceptions, of course).

Indeed, as nonprofits, we tend to downplay “overhead” costs like sales analysts or “management” functions that could lead us to higher revenues and better customer relationships in the underwriting space. We don’t really operate like a business where it matters most — where money intersects with mission.

On top of all that, then there’s the problem of TV. All TV outlets have fewer and fewer viewers as the mass media model breaks down in a flurry of new outlets and platforms. And then there’s the demographics of PBS generally, which are less-than-desirable for many marketers.

In short, the money is moving where it can get greater impact, and public media outlets are pooly prepared to sense the change or alter course to meet the advertisers at their new destinations.

The solution? Get engaged locally in a way that’s unassailable by national trends. Build deep relationships that, yes, can be “monetized” in both corporate and individual realms. Develop relationships with sponsors that have historically not played in local media. Plus, get your butt online in a real way, not with business card web sites. Oh, and be sure to have some hard-nosed analysts on board that keep the business honest on the numbers — avoid the doe-eyed optimism that sometimes overtakes “soft” nonprofits like ours.

There’s been a lot of chatter this week about NPR’s coverage of the earthquakes and their aftermath in the Sichuan province of China, and for good reason. Reporting, especially by Melissa Block from Chengdu, has been remarkable: it’s immediate, detailed, dispassionate, and yet so completely human and humane. Lots of folks in public media have noted how proud they were to be professionally associated with just this kind of public service, and I felt the same way.

Indeed, I felt about NPR’s coverage exactly the opposite of what I feel every time I see or hear commercial media reporting on, well… anything. I’ve cited before my disgust for all things TV news and especially cable news. The disasters that are CNN, MSNBC, Fox, CBS, ABC, NBC and so on would be laughable if they weren’t so fundamentally damaging to our democracy. They’re a cancer, not a public service, as they make our nation dumber with each minute of air time. They’re part of what I call the “bread-and-circuses” media. (And I’m not saying this for dramatic effect — I’m literally angered and saddened with each appearance of Wolf Blitzer and the army of morons that make up commercial TV news.)

Which leads me to a positive point, rather than just a rant.

(more…)

Recently I’ve told people I know, especially folks I meet via Twitter, that this here blog is really kind of an “inside baseball” thing for public media purveyors or supporters. It’s not a general interest kind of thing. Well, for this post, I’m going to kick up the inside baseball factor a notch…

In the wake of the Ken Stern departure from NPR, the rumblings in D.C. were audible all the way out here in Anchorage (it helps if you have a former NPR staffer working in the next office). Stations across the country were in a tizzy for a few days trying to read the tea leaves — what did it all mean?

Then a few weeks later we heard about the departure of Maria Thomas, NPR’s digital media guru. As one of the chief architects of NPR’s many digital initiatives, her exit fueled speculation that the elimination of Stern was a rebuke of online activities at the company and Thomas left because her days were numbered.

At least that’s the speculation I heard. But I didn’t believe it.

Thomas came to NPR with solid online / e-commerce experience. She did great work at NPR. But I suspected she basically had achieved all she could in a company that, for all its good intentions, cannot move too terribly quickly, given the distributed nature of its goals and relationships. Plus, her work would have gotten her continued attention in web circles. She was likely hit with a job offers repeatedly. 

Today venture capitalist (and uber-blogger) Fred Wilson announced Thomas’ installation as COO of the unique online retailer Etsy.com. While we knew the Etsy part of the story weeks ago, I think the warm welcome she’s being offered tells the real story — that hiring Thomas was a coup for Union Square Ventures and Etsy, not a housecleaning for NPR.

Be sure to check out the introductory video — great stuff. And note what Thomas says when asked why she likes Etsy: “I love that Etsy means connecting with something authentic.” Spoken like the new media veteran she is.

Of course, I could be wrong. Hit me in the comments if I’m missing anything.

This Week in Tech (TWiT) is a great little tech-oriented podcast with a broad international following (somwhere north of 200,000 weekly listeners). But on the March 31 show they went off the tech industry track and tackled issues related to news, newspapers, news radio, NPR, podcasts, blogs, Twitter, reporting and more.

Public media folks may be interested to hear how folks that work in media — but outside our industry niche — talk about what we’re doing and the major trends affecting everyone publishing everything.

You can listen to and/or download this week’s episode here.

Current published an in-depth article on the NPR / Ken Stern story this week. I’ve updated my list of articles to include it, and it’s a great read on its own. It summarizes a large swath of the Stern history at NPR and points to several core reasons why things just didn’t work out.

I actually came away from this profile liking Ken Stern quite a bit. Did he fit well into the CEO slot? Perhaps not. But he did some great work for NPR. And to everyone’s credit — except a sour-grapes Bob Edwards — the comments from board members and others were incredibly even-handed.

Great show today on Kansas City’s public radio station KCUR with guests Robert Paterson, Todd Mundt and Andy Carvin. The topic? Surprise! New media and public media.

Worth a listen, especially if you’re a little confused about how public radio and public TV can engage the world in an online context.

Total time: about 51 minutes. Download the MP3 here.

(By the way, I’d link to the web page at KCUR, but it appears it won’t be available after this week due to the way it’s published using the Public Interactive CMS.)

Dennis Haarsager, new interim CEO at National Public Radio (NPR), appeared on the NewsGang podcast this past Friday. He spoke fairly openly about the unusual CEO transition and about how NPR may change as it deals with an audience that’s moving to new media distribution channels and interaction platforms.

In addition to Haarsager, the guest list included Stephen Hill from Hearts of Space, Steve Gillmor (the host), and Doc Searls, who also appeared on a panel at the recent Integrated Media Association conference along with Haarsager and others.

UPDATE: Highly Recommended Listening. Haarsager and friends go into depth talking about new media economics and public media’s entanglements — or lack thereof — with new platforms. Money quote from Stephen Hill: “Show the stations how you’re gonna keep them in business and they’ll be very happy to cooperate with [NPR].”

Running time of the MP3 file is about 1 hour, 25 minutes.

The link to the NewsGang podcast has also been added to my (still growing) list of Ken Stern articles.

While searching for more NPR / Ken Stern articles today, I stumbled across a blog post that refers to the news, but spends much more time listing the crimes and misdemeanors of the current public radio landscape, especially as emanating from NPR and other national outlets (APM, PRI, etc.).

Written by Dave Slusher, Public Radio Fails Me explores at length the ways in which Slusher was first captured by public broadcasting and especially public radio many years ago. But it goes on to lambaste public radio for what he feels its become — populist when it comes to cash, elitist when it comes to control, and tired when it comes to programming.

Written by any person on the street, it’s a damning indictment of some of public radio’s (perceived) trends over the past 10 years or so. But this was not written by any random man on the street — it’s written by a man with experience inside the system as a producer as well as consumer.

While I’m not entirely in agreement with Slusher, I do think there are some truths in there with which public radio (and all of public media) must seriously grapple. Slusher’s comments on the changes in the flagship NPR newsmagazines in particular I find fairly accurate. Of course, those changes may account for the doubling in NPR’s weekly audience over the past 10 years. But it’s definitely changed, and for those with an interest in deeper news coverage, it’s not all positive changes.

In any case, it’s a long post but worth a read and a comment at his site, whatever your opinions.

Dennis Haarsager posted his response to the speculation about CEO Ken Stern’s departure from NPR this past week. It doesn’t present a “smoking gun” version of events. However, in the comments to his post, Haarsager lets loose three priceless notes that illuminate these events more than any other account to date:

• “…Mr Stern chose the time and day when he left the building.”
• “…no malfeasance or misfeasance should be imputed.”
• “…transparency is an important ideal; [Stern's] privacy is a right.”

These quotes are very important to understanding the events.

First, he blows the malfeasance idea out of the water. When the news hit about Stern’s departure, I know folks around my shop assumed there was something sinister about the change. Had there been embezzlement? Sexual harassment? Physical confrontation? Why else would the termination be so abrupt? Well, it wasn’t something like that. (And those with personal experience of Ken Stern couldn’t imagine such a scenario anyway.)

Second, Haarsager notes the mutually exclusive issues of transparency and privacy. We observers want transparency in these affairs, but the departed — Stern — has a right to privacy. Personal privacy trumps corporate transparency in this case, and rightly so.

If you’ve ever been in a managerial position, you know there are things you can and can’t talk about when it comes to hiring candidates and terminating employees. Indeed, mostly you can’t say anything. Even if you’re mad at the employee, even if you’d like to give them a swift kick on the way out the door, you say nothing. To say anything negative is an abuse of your power and opens the company up to lawsuits. Besides, the employee is gone now — it’s time to look ahead.

Third, and most importantly, the departure was abrupt, but the timing was Stern’s choice. In other words, Stern could have played this game entirely differently — even leading to a multi-month golden parachute process, I suspect — but he chose to go out this way and at this time. This tells us a tremendous amount without giving details (an excellent balance of transparency and privacy, I think).

Consider how most CEO departures play out: there’s usually a transition period, often a significant one. The Bill Gates departure from Microsoft has been in the works for more than 2 years and he even left the CEO role several years prior to that. Many nonprofits have written succession plans, allowing for smooth transitions either over time or in emergency situations. And even when a CEO departs to “spend more time with his/her family,” there’s at least some degree of hand-off, like a consulting gig with the company until the new CEO is seated. But not here.

So the fact that there’s no transition, that the change was so abrupt and surprising, and the fact that Stern more or less set the timetable speaks volumes. And not to Stern’s credit. In my experience, even if you’re disgruntled, you don’t walk out and cut all ties with the company instantly.

So Haarsager’s statement that the reasons for Stern’s departure were “multivariate” is probably the most accurate, albeit the least satisfying. And from what I’ve gathered privately, it really isn’t all about the new media angle (though that’s one of the variants to which Haarsager is likely referring). But the way this went down — the suddenness of it — suggests much of the problem existed inside the CEO’s office. It didn’t have to end this way.

Personally, I’m ready to move on — we’ve got so much to do in public media. But I’ll continue to update the articles list as needed.

While I do appreciate Robert Paterson’s take on the leadership issue that’s likely below the surface of the NPR / Stern debate, I’m struggling to believe that that’s the core of this week’s story — that Ken Stern just ruffled too many feathers and it was time for a different leader. Sure, hard-charging generals are not the best leaders in all situations, and after 10 years of whip-cracking you might need a smooth operator. That makes eminent sense.

But in the shifting media environment about which so many of us write and ruminate, isn’t a hard-charging general needed at the top? Someone that has both the vision and the drive to push through to a new way of thinking and doing. The media environment changes in play today are not just operational in nature, where a COO might fix this, improve that — they’re strategic shifts. Seismic shifts. World-upside-down shifts. Only a CEO and her or his board of directors can handle those issues and realign the company. And given the time-to-market pressures of new media on old media, NPR probably didn’t (and doesn’t) have the time for all the required dinners and socials and private meetings, nor could it afford compromise after political compromise on the way to a new strategy.

NPR — like all media companies, for-profit or nonprofit, operating in any or all media formats — must grapple with the fundamental changes in progress. The relationship between producers, distributors and consumers is completely inverting.

Of course, this entire discussion could be moot. Public media’s future may have to be created outside the voluminous corpus of NPR (or APM or PRI or APT or PBS or …). Developing a new model with fundamentally different DNA may not be possible inside the system, either with a hard-charging general or a sweet-talking politician.

Well he’s not “on” NPR, but he comments on the NPR / Ken Stern thing, as you might expect. He even gives a shout-out to yours truly (blush!). I returned the favor by commenting on his post.

• Trouble for NPR — BuzzMachine / 7 Mar 2008 (Update: Note Dennis Haarsager’s comment to this post at Jarvis’ blog)

In that post he also refers to a great year-old post about public radio, following a meeting he had at NPR along with other new media folks. This is the post that introduces the great new word “converstation”:

• What should local radio be? — BuzzMachine / 19 Feb 2007

Here’s a collection of Ken Stern / NPR article links for those interested in a curated list.
Updated 24 Mar 2008.

• Stern lost support in his tryout as No. 1 at NPR
  Current / 24 Mar 2008
• NPR Reboots — NewsGang Live 03.14.08 (MP3, 1 hour, 25 minutes)
  New NPR CEO Dennis Haarsager, Hearts of Space producer Stephen Hill, and Doc Searls
• NPR grapples with the prospect of a post-radio future
  Christian Science Monitor / 14 Mar 2008
• What’s the problem with NPR?
  The Sound of Young America (Jesse Thorn) / 13 Mar 2008
• Haarsager wades into murky water as interim chief at NPR
  Seattle Post-Intelligencer / 12 Mar 2008
• Why is managing NPR so damn difficult?
  Jeffrey Dvorkin / 9 Mar 2008
• Change at National Public Radio
  Technology360 (Dennis Haarsager) / 9 Mar 2008
• NPR is Radio Too
  Phil Wilson / 8 Mar 2008
• Value-added local journalism
  Etaoin Shrdlu (Howard Weaver) / 8 Mar 2008
• NPR CEO O-U-T
  On The Media / 7 Mar 2008
• WSU associate vice president’s retirement effective immediately
  Pullman-Moscow Daily News / 7 Mar 2008 (registration required, or read the full text in the comments below, thanks to Kerry Swanson)
• Trouble for NPR
  BuzzMachine (Jeff Jarvis) / 7 Mar 2008 (includes a comment from Dennis Haarsager and lots more interesting comments)
• Did new media success cost NPR boss his job?
  New Tech Heroes / 7 Mar 2008
• NPR Chief Executive Ousted After Fights With Board
  Chronicle of Philanthropy / 7 Mar 2008
• NPR - Horses for Courses
  Robert Paterson / 7 Mar 2008
• NPR - The Opportunity
  Robert Paterson / 7 Mar 2008
• How NPR’s CEO was Dumped
  David Weir / 7 Mar 2008
• NPR CEO Ken Stern Forced Out
  NPR.org / 7 Mar 2008
• NPR Leader Out After Board Clash
  Washington Post / 7 Mar 2008
• NPR Chief, in Office Since 2006, Will Depart
  New York Times / 7 Mar 2008
• NPR’s chief executive resigns
  Washington Business Journal / 7 Mar 2008
• Head of U.S. broadcaster NPR ousted
  CBC.ca / 7 Mar 2008
• NPR taps WSU administrator
  Seattle Post-Intelligencer / 7 Mar 2008
• NPR’s Chief Executive Steps Down
  Associated Press / 6 Mar 2008
• NPR CEO Ken Stern Resigns Abruptly; Differences Over Digital Media Part of It
  paidContent.com (Rafat Ali) / 6 Mar 2008
• CEO Ken Stern Leaving NPR
  NPR.org / 6 Mar 2008
• NPR chief resigns abruptly
  UPI / 6 Mar 2008
• CEO of National Public Radio out
  LA Observed / 6 Mar 2008 (includes text of NPR board memo, signed by Dennis Haarsager)

Older Articles (for context)

• NPR Chief Ken Stern Rides the Airwaves
  Wall Street Journal / 22 Oct 2007
• Ken Stern Named CEO, NPR
  fishbowlDC / 22 Sep 2006

Feel free to share more links in the comments.