After three decades in broadcasting, PBS leaders claim they’ve been “refunded but not defeated” in response to recent funding cuts. Even as I support the current system for local journalism, there’s this nagging feeling—do I follow my passion, or do I develop a solid plan?
In light of Congress cutting funds for public broadcasting, organizations are stepping up. Moving forward, they believe treating public media like a business could be key. This involves slashing legacy costs, reshaping leadership culture, and guiding audiences back to the journalism and education already available.
The stats don’t lie. The 2017 FCC Spectrum Auction uncovered substantial hidden value in legacy assets. Public TV stations managed to rake in around 10 billion dollars through these transactions. For example, WLVT in Pennsylvania netted $82 million, while Los Angeles brought in $49 million, and San Bernardino snagged an impressive $157 million—all just by shifting frequencies. It’s been eight years since then, and it’s clear that the spectrum and towers hold more worth as assets than mere relics of the past.
Then there’s the topic of operating costs. Think about FM transmitters; they usually operate at 10-20 kilowatts. Currently, the commercial rates for such transmitters are quite high. When you consider everything—rent, maintenance, insurance—a full-powered TV site faces multiple expenses. Just the tower ground lease can run into the hundreds of thousands annually.
In contrast, cloud distribution is relatively cheap, costing about 8-9 cents per gigabyte. That’s millions of gigabytes delivered at a fraction of the price.
People have shown they’re ready to support digital memberships, with PBS passport costing $60 a year or $5 a month. This model has proven to be a solid revenue stream for stations. Why not expand it to a unified account for NPR and PBS, perhaps incorporating light paywalls for archives and early releases, creating a nationwide membership platform?
What’s even more interesting is that once tower restrictions are lifted, public media could dive into real advertising.
The current FCC regulations for non-profit radios and television stations prohibit promotional advertising and require non-commercial underwriting (which can be limiting). Yet, digital products aren’t bound by the same underwriting rules.
NPR Podcasts already pull in premium advertising rates of $20 to $30 per 1,000 listeners. Similarly, high-quality video pre-roll and display ads can fetch comparable pricing. With NPR reaching millions each week and PBS more than 100 million monthly, it’s clear even a modest advertising load could lead to significant revenue.
The path seems straightforward—it keeps ad loads minimal, eliminates sensitive categories, and allows for ad-free paid membership. This dual model of advertising and memberships could be the New York Times or Spotify approach reimagined for public media.
There’s also a critical need to shift the executive culture. The IRS 990 filings reveal PBS’s CEO is earning about $1.16 million, with other executives ranging from $500,000 to $750,000. NPR’s CEO falls in the $500,000 to $600,000 band. These salaries don’t reflect public service; they’re market rates. Slashing these figures in half could save millions. A CEO shouldn’t earn more than $400,000, and there are plenty of strong candidates for top roles at much more reasonable salaries.
This restructuring could yield huge savings and send the right message about leadership roles within public media. They should be administrators, not celebrities.
Additionally, there’s a need to consider where headquarters are located. NPR’s Washington building occupies a pricey 330,000 square feet, while rental rates nearby can be around $60 per square foot. In contrast, PBS in Arlington holds about 120,000 square feet at a long-term lease. Comparable spaces in St. Louis, for instance, can be as low as $22 per square foot—about a third of D.C. prices.
Relocating to St. Louis, Columbus, or Kansas City could save millions annually and place leadership closer to the central U.S.
In this new framework, localism wouldn’t vanish; it would actually thrive. Instead of struggling stations, the focus would shift to building 12 regional digital hubs, each outfitted with shared resources that bolster local reporting and education.
Projects like the South Dakota Climate Data Story or Mississippi Maternal Health Series could be disseminated nationwide through this unified system, giving NPR the potential to act as a national news desk.
This is the business case for modern digital public media.
Sell the towers, leverage spectrum values, cut operational costs, rethink executive pay, relocate to affordable areas, broaden the successful membership model, and pursue real advertising revenue. Establish local hubs while maintaining local reporting and education with reduced overhead.
For the future of public media, it’s crucial not to fixate on past losses. The focus should be on the transformation that lies ahead.
