By Ray Stern
By New Times
By Amy Silverman
By Stephen Lemons
By Stephen Lemons
By Monica Alonzo
By Chris Parker
By New Times
Arizona's biggest PBS station had failed to raise enough money to pay for its move.
Today, KAET, known as "Channel Eight" to old timers and "Eight" under its current branding, is living a bipolar existence. The station's management has made the move downtown, to a handsome suite at the Walter Cronkite School of Journalism. But its bread-and-butter operations are stuck in Tempe — trying to raise another $1 million for the move. Station brass now say those operations won't make it to the Cronkite School until April 2009. That's the best-case scenario.
The delayed move is only the most obvious symbol of some serious problems. The station has been forced to lay off a half-dozen workers; other positions are staying open indefinitely. Its general manager "resigned," and there are currently no plans to replace him. (The buck at Eight now stops with an ASU public relations guru.) The station is looking at a $1 million budget deficit in this fiscal year. In hopes of cutting costs, it plans to shift more production duties to free student labor.
Of course, it's not just Eight; PBS stations everywhere are experiencing hard times. Twenty years ago, it was clear why America needed public television. Far fewer families had cable, and viewers hungry for culture (or just something different) had few options beyond PBS.
Today, those viewers can go anywhere. A recent Nielsen survey revealed that 65 percent of Americans have both digital and satellite TV. There is simply too much content out there. And though the glut of choices is great for consumers, it's hell for producers hoping to make money. Or just break even.
Which brings us to Eight.
Insiders tell me the station used to be subsidized fairly heavily by the Legislature, via ASU. But when Michael Crow took the helm as ASU's president, he decreed that Eight had to become self-sustaining.
Good idea, in theory. But Eight had a hard time increasing its donations to the necessary level — or, until recently, cutting expenses. When a pledge drive came up $200,000 short this summer, insiders say it nearly pushed the station over the edge.
Bad decisions played a role. Virgil Renzulli, the executive vice president for public affairs at ASU and the guy who's now in charge of Eight, recently told the station's advisory board that a consultant was hired last spring to diagnose problems. The consultant recommended layoffs. But when it came time to make the cuts, station management failed to act before the end of the fiscal year.
"If you don't make the cuts by June 30, they roll over," Renzulli told the board. "Those cuts weren't made in time." Without some big-money donors, he added, the station's reserves will be virtually exhausted by the end of this fiscal year.
The move to the Cronkite School was supposed to cost a total of $5.2 million. The expense is so high because, in part, Eight didn't want to move clunky old equipment. It'll be buying new and improved stuff instead.
It's raised $700,000, according to marketing director Kelly McCullough, and ASU is chipping in $3.5 million. That leaves $1 million to go.
But McCullough says the station would love to raise another million beyond that. The more money, the more new equipment.
Two million dollars? In this economy?
I'm beginning to wonder if management at Eight has been watching too much Sesame Street.
During last week's advisory board meeting, the station's former manager, Bob Ellis, joked about how the station needed a "bailout" for the move.
Ellis added, poignantly, "I have a 30-year stake in this station. I don't want to see it go under."
"It's not going to go under because of the move," responded the station's big boss, Renzulli. "I don't think it's going to go under at all."
It wasn't exactly a rousing promise.
Layoffs are probably not a bad thing. I was stunned to learn that the station has nearly 70 employees and a budget of $13.9 million. For what? It gets most of its programming directly from PBS headquarters!
But there's a bigger problem here.
Many Eight supporters have come to believe that the answer is local programming. That's what it can do that the Food Channel, for example, cannot.
The conundrum is that local programming is expensive. In an e-mail to New Times, Renzulli actually called the station's "commitment to local programming . . . [its] basic financial problem."
"Every time we produce a local show such as Horizon, Horizonte, or Arizona Stories, it costs us money," he writes. "We receive very little funding specifically for these shows, but because we think local programming is so important, we continue to fund these shows out of our general revenue."
Renzulli says the station remains committed to Horizon and Horizonte — and producing three hours of the public affairs programs every week. But, he says, the station is going to be doing the work with fewer paid staff: Students at the Cronkite School will handle an increasing share of the production workload.