WYPR Board News: Looking to Raise Revenues

Report by Max Obuszewski

The Jan. 13, 2010 WYPR Board meeting and the Jan. 14 WYPR CAB meeting:

Deborah Callard called the meeting to order around 3 PM. George Matysiak, myself, and CAB members Peggy Olbrecht and Dale McCardle were in attendance.

Bailey Eck gave a report from the Governance Committee.  No representative was present from Ocean City.  According to FCC rules, there must be board members from all locales in the listening area.  It was said there were some good candidates, but there is reluctance to commit. One potential candidate has been found, a police officer in Ocean City, who is president of the FOP.  He played center on the University of Maryland football team. Those board members who spoke were favorable to having him on the board.  Again there is almost no racial diversity on the board with but one African American in the room.

Since radio is changing, it was said to look for board candidates who can assist in the technical transformation. In fact there is a move towards joint ventures.  A task force will look at sustainability issues and possible new directions.

Tony Brandon indicated other nonprofits are looking in this direction.  Johns Hopkins University has hired a woman who is a venture capitalist. Sinai Hospital has hired a person to look for new business ventures and she suggested that the hospital should open a drugstore.  There can be downsides, as Bailey pointed out, in regards to integrity.

I was extremely surprised to hear that Deborah and Tony have been traveling to see these “new business ventures.”  They were to travel to Cleveland to visit Ideastream, a for-profit which provides video streaming for the Ohio legislature.  They visited WBUR in Boston and were in San Diego.  Does the station continue with a capital campaign or should it consider new business ventures?

I wondered to myself if this is this legal?  Can a nonprofit radio station get involved with a for-profit corporation?  Can the station get involved in a for-profit business venture?

Beth Falcone gave a report from the Content and Outreach Committee.  She reported the new CAB members were briefed and given a tour of the station.

Bruce Wallace, producer for Maryland Morning, explained how a story might be developed.  He talked about the closing down of the community group SMEAC.  What he failed to mentioned, as reported in THE SUN, the former head of SMEAC was now employed by Johns Hopkins Hospital.  Could this be the reason the community group closed up shop?

A new project for Maryland Morning will be an investigation of the effects of the stimulus money.  Wallace said Doug Donovan, a former SUN reporter, has been hired to do a story once a month for the next nine months. There is some underwriting to cover Donovan’s contract.

Andy Bienstock gave a ratings report and an update on video streaming.  He asked who has HD radio.  Two people raised their hands.  He said this is typical of the general public.  HD1 is by the law analog.  HD2 is streaming the BBC and HD 3, while also streaming BBC, is being considered for some alternative.  YPR could consider doing jazz, classical or folk music.  There is no reason to do news on HD3. It is not yet standard for cars to have HD radio.

For ratings, there are no more diaries, but instead people meters.  With this system, the listenership reported has dropped, but YPR maintained its share and is 10th in the city.  WLIF, easy listening, benefited from the people meters.  Before men would not admit listening to such stations, but meters catch what radio station is actually on.

In a blatant attempt to smack Marc Steiner, Brandon asked about WEAA.  Andy said the station has very meager listener ship, except for music on the weekends.  There was no reason for bringing this up except to taunt us for supporting Steiner.  See my comments at the CAB meeting.  Andy said you cannot survive as an NPR station with so few listeners.  He was pleased with YPR’s ratings.

David Bowen gave a financial report.  He indicated the station was doing much better than expected.  The finance committee would meet each month to monitor the situation.  Tony thanked the programming people, and Deborah thanked Alex for bringing in the grants.

Tony reported that ad revenue is down 20% in the industry, but YPR is only down 3.5%.  The real financial concern then surfaced.  While YPR is adequately covering its costs, it is hardly reducing its debt–the loan taken to buy the station.  It was indicated that based on the covenant, there is concern about the debt ratio.

Dale gave a report about the CAB.  He said committees were functioning, and that attendance was pretty good. Tony expressed a concern that no one was taking minutes at CAB meetings.  Rodney Stump gave an update on the work of the Friends Group.

Finally, Brandon gave his president’s state of the station.  The strategic initiative is fiscal restraint, an improved web site and a search for new opportunities for the station.

I had to leave, as the board went into executive session.  The agenda gave no hint at the substance of what might be discussed behind closed doors.  I can only speculate that there was a serious discussion about the humongous debt which is not being reduced and the concept of getting involved in for-profit activities.

Report on January 14 CAB meeting

Dave Eberhardt and I attended the CAB meeting at Our Daily Bread.  Doreen Bolger opened the meeting at 6:10 PM and said that a YPR employee should take the minutes.  The board members agreed.  Her schedule does not permit her to do the minutes.  So it would be brought to Tony’s attention that he must supply a note taker.

Two CAB members resigned, and because of a serious health problem it is expected that Nancy Harrigan will no longer be with the CAB.  Beth Falcone from the corporate board suggested there is a need for more CAB members.  Please recruit.  Presumably interviews will take place at the station.

Then Falcone engaged in a discussion about ascertainment.  One CAB person felt that the term was elitist.  Another said she left the term out of her report.  Eduardo Hayden is the CAB’s chair of the ascertainment committee, and he was not  present.  The committee has not met since the last CAB meeting.

There were ten CAB members present, so it was determined that the meeting could proceed since there was a quorum.  Then Dale was elected chair, and Cindy Amitin was selected as vice-chair.  There was no vote at the last meeting, because of a concern for the lack of members present.

Dale McCardle and Peggy Obrecht gave a report about the previous day’s board meeting.  The station has 11,000 email addresses, but not all are contributors.  The station should echo the needs of the community, not just listeners.  Dale told of Bruce Wallace’s report to the board members.  He wants to invite him to a CAB meeting.

Rodney Stump of the Friends Group was welcomed.  Peggy said she was unaware there was a Friends Groups until she attended the board meeting.    He said the group provides pro bono advice to YPR.  Stump indicated he is working on a survey which listeners would eventually fill out.

I indicated one failing of the station is the lack of coverage of the wars and the money spent in Afghanistan and Iraq while cities and states have budget deficits.  This issue should be part of the survey.  I argued that Dan Rodricks has been supportive of the wars.   Peggy asked if I knew anyone to interview on this subject, I said yes, many people.

Dave asked what are the potential issues the news department should cover?  A CAB member wanted it on record that community members should be able to contribute at CAB meetings.

Another opined that more timely coverage of the news is needed.  The Dixon mess was well-covered, but what else?

I thanked Doreen for her service on the CAB and for allowing input from the community members who were at meetings.  Then I urged the CAB to allow members of the community to comment during the meeting, rather than just at the end.  This was agreed on.  The CAB said it will hold a general meeting, where the community will be invited and asked to express opinions and make comments and suggestions

Dale will seek out agenda items and send out a notice and an agenda a month in advance.  The next CAB meeting is March 18.  The plan is to have five meetings a year.

Dave said he would like to hear more advocacy on YPR.  A CAB member wanted to hear more investigative news stories.  I suggested inviting Sunni Khalid to a CAB meeting.  Stump promoted HD radio, but I reminded the meeting that Bienstock said very few people have an HD radio.

I raised several concerns.  There was an executive session at yesterday’s board meeting.  I agreed that certain matters could be discussed in executive session.  But how do we know if the issues discussed were indeed items that the community should not know about?  Could the poor financial session be discussed in private?  Or a plan to get involved in a private joint venture?  Dale agreed to seek more information.

Then I alerted the meeting how disdainful Tony Brandon was to WEAA during the board meeting.  I reminded all that in these difficult times, nonprofits should be supporting each other not defaming another public radio station.  I said that it was an affront aimed at Marc Steiner.  Dale said he could not confirm that and that he is not a “thorn-in-the-side person.