SaveKUTAustin

So why can’t KUT, our public radio station, afford the same DJs on a $6 + million budget that it once paid on a $2 million budget? Are they just the victims of the “tough times” everybody is going through — collateral damage? Are times really so tough, given the fact that this spring’s fundraiser set new records for money pledged, more old cars were donated than ever before? (see excerpt from triplearadio.com )

Was that $120,000 the DJs would have been paid been redirected (uh . . . check that: it was quickly re-spun to being “saved”) to keep the lights on at the station? What exactly does 6 or 7 million dollars buy anymore? Because it’s the choices management has made in the last nine years, not the failings of individual DJs or an economic downturn, that have led to the current situation.

To understand that, you have to look at the increased expenses over the period – the “nut,” so to speak, in gambler parlance, as there’s a hazy line these days between “investment” and “Mississippi riverboat gambling.” Where then has that 20 or 30 or however many million dollars of public money collected over the years been spent?

Good question, as the numbers seem hard to come by. As written about before, the latest sketchy budget report on the KUT website – for 2007 — deals in vague generalities (see “Where’s the Money?”, http://www.savekutaustin.com/?p=1945 . A somewhat more clear picture can be gained in the writings of the Austin Chronicle’s Kevin Brass, Lee Nichols, et al., who’ve done the heavy lifting on this story over the years. Nichols, writing back in the “old days” of 1999, reported on the trepidation among KUT supporters at the regime change that saw Phil Corriveau fired as general manager and Stewart Vanderwilt hired, ushering in a decade of tumult:

Some observers fear that the demographic and population changes which are currently turning Austin into Anycity, USA, could have the same effect on UT’s NPR affiliate. The concern among both programmers and longtime listeners is that many newcomers to the area, the same people who gravitate toward the Starbucks rather than the Quackenbushes, don’t care about the excellent local programming that has distinguished KUT among its peers and instead would rather hear the same syndicated NPR programming that they heard in their previous locale. . . .

Wartella [then dean of communications school] may have only inflamed such fears by telling the Statesman that she wants “someone who will move the station in new directions” and that Corriveau’s replacement should have a “vision of the future.”  (See “Same Old Song: Spinning More Than Records at KUT,” 7/22/99, http://www.austinchronicle.com/gyrobase/Issue/column?oid=522438 )

Vanderwilt, hired from an Indiana public radio station, sought to allay fears in an interview with Nichols, while hinting at what “new directions” he might be considering:

AC: There’s all kinds of stories going around about a major overhaul that is supposedly going to occur at KUT. I heard a rumor that the music library is going to be dumped onto a computer, with the playlist to follow. I’ve also heard that you’re going to dump Larry Monroe, and make Eklektikos a pre-recorded, scripted show. Is any of that true?

SV: [Laughs] Almost categorically, no. I heard one about Larry Monroe as well, and I have no idea where that came from. It’s not even a consideration for me. I can see how putting the music library on computer, how some of my vision could be twisted into that. . . .

AC: Where could that have come from?

SV: It comes from the concept that KUT needs to invest in a major overhaul of our technical operation and how we go about the process of production. . . . But we will integrate digital technology into what we do. It will make what we currently do easier and more efficient, which will allow us to do more things. So in that sense, KUT will undergo a major technological overhaul, but that has nothing to do with Larry Monroe other than that he’ll have more tools at his disposal. ( See “Public Works: KUT’s New Leader Has Big Plans for Austin’s Public Radio Station ” 7/28/00, http://www.austinchronicle.com/gyrobase/Issue/column?oid=78065

But it’s not as though Vanderwilt faced a task of Herculean proportions, bringing KUT back from the dead, so to speak. As the university’s website TxTell reported:

Austin has responded to KUT as a vital force for decades. The station is unquestionably one of the city’s favorites. The Austin Chronicle readers ranked it the best radio station in Austin every year from 1980 to 1990 and a number of years since, including 2001. Arbitron, the radio industry’s most important collector of audience data, frequently ranks KUT among the best radio stations in Austin, often above the commercial radio stations. In Arbitron’s spring 2001 rankings, KUT rated first among 25-54-year-old listeners. It wasn’t the first time, and it’s unlikely to be the last.

The remarkable success of KUT’s fund drives is another measure of its success in Austin. Public radio stations rely on listener membership contributions for upwards of 50% of their operating budgets. . . . KUT’s fall 2001 membership drive was abbreviated to span only eight days. The drive’s goal was $500,000, but KUT raised $645,000, a larger amount than funds raised by public radio affiliates in Houston and Dallas, markets that are significantly larger than Austin’s. Clearly, Austin doesn’t just listen to KUT, it steps forward to support it as well. ( http://txtell.lib.utexas.edu/stories/k0002-full.html )

And in a stirring closing statement, the posting gushed:

. . . Austin is a renowned music and cultural community. The true genius of KUT is that the station has capitalized on these assets, becoming a strong, varied, and important voice locally and, increasingly, on a national level. This is clear to every Austinite who adjusts his or her radio dial to 90.5 FM. And to NPR’s president and CEO, Kevin Klose, as well, who says, “NPR looks to KUT to help us define the future of public radio in America.”

In a 1998 Chronicle article, Jay Hardwig noted: “Nationwide, KUT boasts the largest audience of any public radio station in its market size; over 100,000 people tune in each week.” And in conclusion, he quoted GM Corriveau: “The reason KUT is so great is because of the talent we have here, people like John Aielli, Larry Monroe, Paul Ray. Nobody else has that kind of talent in the country.” In September 1998, the article noted, KUT began internet broadcasts from its kut.org website. . . . (“You Won’t Hear That on Commercial Radio ,” 11/5/97, http://www.austinchronicle.com/gyrobase/Issue/print?oid=520561 )

Apparently Vanderwilt didn’t share Corriveau’s enthusiasm for the trio. As he undertook his “major overhaul of our technical operation and how we go about the process of production,” Vanderwilt began by adding to management and subtracting from labor:

You might have noticed that noncommercial FM station KUT has some changes happening now, with more to come in the future.

Concurrent with the arrival of new program director, Hawk Mendenhall [who now is paid $112,500, (see salary tables below. Click to expand the images), is an hour less of John Aielli in the morning . . . Given that Mendenhall isn’t just the new program director, but rather the first PD KUT has had since 1982, some locals fear the station might become more format-based and lose its freeform style, effectively turning KUT into a clone of commercial AAA station KGSR-FM. . . . Not to worry, says KUT General Manager Stewart Vanderwilt, describing the PD position at the station as one of “designated listener,” or one who works with the producers to assist them with station operations so they can focus their attention on their programs. “I think we do something really unique,” assures Vanderwilt, “and we’re going to maintain that. I think we can be more organized and still maintain our integrity.” (“The KUTting Edge,” Ken Lieck, 2/2/01, http://www.austinchronicle.com/gyrobase/Issue/column?oid=80419 )

Click a Salary Table Image to Expand

Aside from tinkering with the lineup, the GM’s “vision of future” also included a local news department. The price of poker went up:

KUT’s attempt at organizing a local news department took its first step toward fruition with the hiring of Emily Donahue as news director last month. Currently the producer of Marketplace Morning Report in Los Angeles, Donahue has worked for NBC, New England’s Cable News Network, Boston’s WCVB, and The Christian Science Monitor‘s “Monitor Radio” and Internet news services. She will start work Dec. 5, and KUT’s local news programming is expected to begin some time in early 2002. (“Making the KUT,” Lee Nichols, 11/9/01, http://www.austinchronicle.com/gyrobase/Issue/story?oid=83603 )

Donahue, who now is paid $81,100 a year (more than any DJ at KUT), soon oversaw a rapidly expanding chunk of change. As Kevin Brass noted in 2006, “Although local news reports are heard only sporadically through the course of a day, the station spends $600,000 a year to maintain the news presence” (“KUT by the Numbers: That ringing sound you hear? It’s the cash register at Austin’s public radio station” 1/20/06, http://www.austinchronicle.com/gyrobase/Issue/story?oid=325857 ). This reportedly created more than a few hard feelings among a staff already besieged by Vanderwilt’s “vision.”

And this rapidly expanding vision led to a raft of new changes:

If the howls of protest emitted by some KUT (90.5FM) listeners after last year’s programming changes provide any indication, the public radio station’s fans might go into complete shock after Jan. 28, when station management will initiate wholesale changes in the NPR affiliate’s schedule.

Management began planning KUT’s schedule overhaul primarily to accommodate two syndicated programs into the station’s evening lineup: Marketplace, a business report distributed by Public Radio International, and The World, a world news program jointly produced by PRI, WGBH in Boston, and the BBC. . . .

KUT stalwarts Paul Ray and Larry Monroe, and more recent additions Diane Donovan and Angela Miller, will replace the rotating cast of overnight deejays. And Soundsight, which featured newspaper and magazine articles being read for the benefit of blind listeners, is kaput. Got all that? (“KUT and Paste,” Lee Nichols, 1/25/02, http://www.austinchronicle.com/gyrobase/Issue/story?oid=84467 )

People seemed to adjust, aided perhaps by a concerted public relations campaign by hired-gun Elizabeth Christian, wife of former mayor Bruce Todd and head of Elizabeth Christian & Associates Public Relations, Inc., whose website summarized the return on investment:

The station hired Elizabeth Christian & Associates to work on the planning and public announcement of a major programming change for the station. The project included planning with station management, and developing and executing a communications strategy for members, underwriters and the general public before and after the changes. As a result of our efforts, complaints were considered to be fewer than anticipated and the changes, overall, were received favorably. KUT management invited the agency to speak at a National Public Radio conference later that year to offer advice to other stations considering similar programming changes.

It’s Money That Matters

While smoothing over hostile fan reaction on the one hand, the GM undertook further moves to augment penetration in the corporate community. In 2002 veteran fundraiser Sylvia Carson was hired as the newly created director of development. (She now makes $97,000 a year.) She oversaw a sales manager and three sales reps, “a sales department to rival that of many commercial stations. In 2005 alone they raised $4.4 million” (Kevin Brass, 1/20/06). In 2003, KUT contracted with Public Radio Partners, an Arizona-based corporate rain-making machine, to (in the words of the firm’s website) “increase client service and provide more companies with the opportunity to support public radio.” Thus blossomed the annoying era of underwriting sponsorship. The PRP website proudly touted the new relationship:

For more than 40 years, KUT-FM, Austin’s listener-supported public radio, has been enriching the lives of Central and West Texans with local and national programming that mirrors the unique nature of its audience. In addition to providing news from National Public Radio and Public Radio International, KUT/KUTX also produces award-winning local programming, including John Aielli’s Eklektikos and Latino USA, which won the distinguished Edward R. Murrow award. ( http://www.publicradiopartners.com/news/KUTUnderwriting.php )

In a posting trumpeting the 2006 renewal of this agreement, PRP proudly announced:

Representation by Public Radio Partners since February 2002 has boosted underwriting revenue by an average of 25% annually over prior year for the past 4 years.

Public Radio Partners’ success stems from its ability to communicate public radio’s marketing value to the business community and align with underwriters who value public radio’s non-commercial nature and quality programming. . . .

With the recent addition of web and streaming sponsorships on the newly renovated kut.org, Public Radio Partners will balance their focus on developing best new media sales practices while sustaining the growth of traditional on-air underwriting

Apparently, Stewart and Hawk were equally impressed by the efficacy of the PRP method. Both are quoted giving glowing endorsements of the company on the website. Both too seem oblivious to the problem of increasing corporate funding, even beyond the ubiquitous non-advertisements crowding the airwaves: Ya gotta serve somebody. As Kevin Brass so aptly put it:

Public broadcasting’s increasing reliance on corporate funding, detractors say, undermines the basic concept of “noncommercial” stations established to serve communities, in theory free of the need to hump for advertisers. When public stations focus on wooing corporate money, “they are really off the mission of public broadcasting,” said Jerold Starr, executive director of the Pittsburgh-based Citizens for Independent Public Broadcasting. One result, he says, is an increased emphasis on ratings and program development based on the ability of a show to attract sponsors. “When the whole idea of what kind of program to do is, ‘Who will fund it?’ you’re being influenced,” Starr said. “The people who get passed over are the poor and racial minorities, simply because they are not seen as a desirable demographic.” (Kevin Brass, 1/20/06)

But at that point, the self-perpetuating money-making machine that KUT had become was already running out of control. Vanderwilt’s elite executive-level layer of new hires – ostensibly the “best and brightest” minds in NPR – had to be paid, and the bill kept increasing. To implement his “major overhaul of our technical operation,” Vanderwilt brought in Richard Dean from California, for $93,500 a year, to develop a “multiplatform strategy” for the station – the star-crossed HD radio ventures. (For further analysis of the HD radio fiasco, see “Is KUT Throwing Your Money Down a Rat Hole?” ( http://www.savekutaustin.com/?p=1022 ) , and “Canned Music” ( http://www.savekutaustin.com/?p=1637 )  As his online résumé notes, Dean oversaw a seven-member technology team with a budget of $1 million. Dean has since returned to California, and now James Reese oversees the department, at a cut-rate $75,800 a year.

Add to that the hire of NPR’s Marketplace producer David Brown out of Los Angeles, who is paid $84,000 a year, making him the station’s highest-paid on-air personality. The addition of Brown, who is married to news director Emily Donahue, reportedly did not sit well with staffers who had seen KUT rise to such heights pre-Stewart. And Vanderwilt brought in Jody Evans, from Vermont Public Radio, at $92,000 a year, taking Hawk’s management slot and bumping him upstairs. (Evans, who returned to Vermont this year, is a particularly interesting case. Reportedly the architect of the “gas the geezers” plan, she is rumored to still be on the company payroll, to the tune of $80,000 a year, for her Vermont expertise.)

While bringing in new, high-priced talent, Vanderwilt had steadily shunted the resident talent into overnight slots or “new horizons” (in the case of longtime KUT rain-maker John Aielli, whose Aielli Unleashed was moved to the web). And when these new time slots and horizons predictably didn’t show an adequate return on investment, in the new nonprofit vernacular, it provided the rationale for the “agonizing decision” of dumped programs and forced retirement . . .

In addition, the costs of NPR programming as well as the continuing drumbeat for more corporate support took a toll on the budget. As Brass noted in the January 2006 article:

At the same time, the amount the station spends to woo corporations and big donors is skyrocketing. The cost of fundraising – labeled as “resource development and listener services” on the station’s Web site – rose from $538,000 in 2000 to $1.4 million in 2005. In essence, the station is spending more money to make more money, Vanderwilt says. “It becomes a question: Do you want a small service that can only be supported by the few that listen and the fewer that give?” he asks. “That’s not our view at KUT.”

In one of the cruel ironies of public broadcasting, the more revenue and audience a station produces, the more it is charged by programming suppliers like National Public Radio. As KUT has grown, so have the fees for the station’s most popular national shows, such as All Things Considered and Marketplace, which account for more than 50% of programming costs. For example, the price KUT pays for Morning Edition has risen from $136,000 in 2000 to $273,000 in 2005.

You see, these things are starting to add up: A million here, a million there, and pretty soon you’re talking about some real money. And at a time when each $120,000 is crucial. . . . The execs run you a mill, the programming a mill, one and a half (or more) to raise the six or seven, the cost of the HD debacle a mill, the local news pushing a mill, who knows what’s being paid for spin (so no one questions how they’re playing their hand), and whoa . . . they’re pretty much tapped out. Small wonder they need to go to Sam’s or Wally World for some canned music. Time to talk about what’s paying for itself and what’s not.

Did someone say AQHs? This is the province of Hawk Mendenhall, numbers guy. They’re his security blanket, his rationale to—in the words of a May 1, 2009, internal memo found in the open-records request of Jim Ellinger’s Austin Airwaves—“take advantage of technological solutions that provide reliable high-quality unattended operations.” The AQHs, the Average Quarter Hours, are spawn of the god Arbitron, the ratings beast for commercial radio, currently beset by legal problems nationwide and under fire in Congress and at the FCC. Hawk lives by these numbers, and uses them to justify all cost-cutting moves. In one released memo, though, he voices a weak discomfort: “The argument of course is why do music at all but the answer there is that it’s not all about the numbers but you can’t discount them completely either.” The words still of a man who knows the cost of everything and the value of nothing.

How do you put a price on the combined wisdom of those DJs who for years funded the station’s operations while helping build that which is now trumpeted as the Live Music Capital of the World? Larry Monroe, awarded for “Keeping the Blues Alive” by the Blues Foundation in Memphis, host of one of the longest-running blues radio shows in the country. Paul Ray, recently named to the Texas Radio Hall of Fame – besides already being named to the Texas Music Hall of Fame. John Aielli, the money-maker for KUT for decades . . . You can’t buy the type of respect they’ve earned, but we’re seeing now you sure can fritter it away. Back-handed into forced retirement, stripped of health benefits, they’re cynically re-badged as “legends” by a hyperbolic PR machine. Is this how we do public radio in Austin? Maybe in Indiana or Utah or LA or Vermont . . .

In one personal email decrying the manipulation, the spin, involved with selling the hand KUT is now playing, former mayor Lee Cooke, the co-chairman of Save KUT Austin, noted:

As GM of a public station, the individual should want to always present the numbers promptly in a clear and understandable way to the pledge-paying public. It becomes a matter of principle. It should be a matter of philosophy. It’s all about the overall public accountability. . . . It seems they want to run and be measured on the listenership increases, fund increases, national-caliber DJ recruits, news department and technology upgrades, and a generally adopted ‘radio success model working in commercial and public radio’ with an eye toward NPR and their strategy. I think that is the evaluation model they have laid out for the Advisory Board and Dean Hart to measure management success and performance. I think he bought it fully or maybe Dean Hart is driving it all. But I seriously doubt it. Dean Hart, with a very good School of Communications, has his own set of challenges in the wake of the changing landscape of the journalism world. The newspaper business and all media are struggling with the combined effects of the digital revolution and the recession, and I think Dean Hart might have his day-to-day work focus elsewhere.

The question remains as to what role Dean Roderick Hart of the UT School of Communication plays in this game. In his boilerplate letters to irate listeners, he lauds the architects of this Reign of Error for the job they’re doing in such “tough times,” another “heckuva job, Brownie,” moment. He not only condoned this behavior; he endorsed it. If, indeed, Hart wants to “win back your confidence in KUT,” as he states in his form letter sent to protesters, he’d better take a good look at the gameplan. If his vision of KUT public radio includes the blatant pandering to AAA radio to sell corporate sponsorship, the playlists to rein in the economy-model jocks now employed (and the “hand-picked” blather from the PR machine), the manifest-destiny model of a profitable nonprofit public radio station, then maybe he’s just part of the problem after all.

So when KUT appeals to “listeners like you” in the next dire fund-raising effort, don’t drink the Kool-Aid, as Kevin Brass and others before him have said. Don’t believe everything a highly paid PR team spins at you. Somebody has to stand up and say, “Don’t throw good money after bad.” Somebody has to know when to hold ’em and know when to fold ’em.

This entry was posted on Saturday, October 3rd, 2009 at 1:02 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.