PBS loses $300 million in recession

Industries from banking to broadband, homebuilding to automaking asked for — and received — millions in the stimulus signed into law last month.

One industry that’s been particularly hit by the bad economy, though, didn’t get a dime of that $800 billion — public television.

It certainly could have used the help.

Even one of PBS’ brightest stars, Ken Burns, is feeling the effects of the recession. As he toured the country this month promoting “The National Parks: America’s Best Idea,” word came that the upcoming series is the last General Motors Corp. will support. GM has backed Mr. Burns for 22 years, but the struggling company decided not to extend its current 10-year agreement with him that provides about 35 percent of his funding.

Tim Isgitt, vice president for government affairs at PBS funder the Corporation for Public Broadcasting, reports that the entire system has had a revenue loss of more than $300 million. Corporations, viewers and even governments are giving less to PBS as the economic crisis has forced them all to tighten their belts.

“We’re getting hurt on all sides,” says Larry D. Unger, executive vice president and chief operating officer of local affiliate Maryland Public Television. “It’s like getting smacked by the same two-by-four several times.”

Mr. Burns will keep working. Knowing the GM sponsorship was coming to a close, he brought Bank of America Corp. on starting with his last series, “The War,” says PBS President and Chief Executive Officer Paula A. Kerger.

Mr. Burns’ spokesman Dave Donovan says he has his next two projects lined up: “He’s doing a film on Prohibition and another as a continuation of his popular ’Baseball’ series, called ’Tenth Inning.’”

Still, when the man often referred to as America’s national documentarian loses a major sponsor, one wonders if the entire public-television system is in trouble.

“The environment is obviously very competitive. Anyone who’s in the media business will tell you the exact same story,” Ms. Kerger says. “Corporations are looking very hard at the investments they’re making, both in advertising and the sponsorship that we do.”

ExxonMobil Masterpiece Theatre used to be one of PBS’ signature shows; the company pulled out in 2004. Five years later, the program has become simply Masterpiece, and PBS is still looking for a corporate sponsor — even though a recent rebranding has sent viewership numbers up “significantly,” Ms. Kerger says.

In recent years, the series has — despite the loss of sponsorship — aired some of its best programming, such as the “Bleak House” adaptation that starred Gillian Anderson. “In some respects, we’re Rapunzel spinning gold out of straw,” the CEO says. “Obviously, the more funding we can put into it, the richer we can make the series. The funding for all of our series worries me.”

The recession couldn’t have come at a worse time for PBS: The federal government mandated that all stations switch to digital this year. “Every one of our public-television stations had to rebuild infrastructure from the bottom up,” Ms. Kerger says.

Mr. Unger thinks public broadcasting’s troubles began before the current downturn, as advertisers looked instead to both the increasing number of television channels and new media.

Stations have had to cut costs to survive, although all are loath to cut programming. Local affiliate WETA announced last month it would reduce managerial salaries and its work force, both by about 13 percent.

Mary Stewart, vice president of external affairs for the affiliate responsible for TV 26 and 90.9 FM, says individual contributions are down about 10 percent this year. Both she and MPT’s Mr. Unger say that the number of contributions has stayed about the same but that those fiercely loyal viewers and listeners are giving less per contribution.

Adam Gronski, WETA’s vice president of corporate marketing and business development, says the number of corporate commitments are likewise actually up, from 183 this time last year to 229. “Clients are just spending less money per commitment,” he says.

The funding squeeze affects more than just residents of the greater Washington area — WETA is the third-largest producer of programs for the PBS system and a partner of Mr. Burns.

PBS might be a public service, but that’s not how corporations view it. “Clients we have see corporate underwriting as a marketing endeavor as opposed to philanthropy,” Mr. Gronski says. All businesses are decreasing their marketing expenditures in this climate.

“All of media is changing and evolving, and we have to evolve with it,” Mr. Gronski declares, but PBS’ special status makes that difficult. Government guidelines restrict what can be included in underwriting credits. “Clients are putting more dollars in strong messages” that mention specific deals, he says. PBS can’t offer that kind of advertising.

Mr. Isgitt says CPB is letting Congress know about the shortfall but won’t ask them to make it up. “At this point, it’s just our responsibility to report it, not necessarily ask for it,” he says.

Mr. Unger is optimistic that the feds will come through. “I think public television probably has the best administration that it’s had in some time in terms of being favorable to what public television does,” he says. Before the spigot opens again, though, he suspects some stations will consolidate and others go black entirely.

As local arts groups around the country declare bankruptcy, PBS is needed more than ever, says Ms. Kreger. She points to PBS’ airing of “King Lear,” starring Ian McKellan, that was taped in New York and will now be seen around the country — and the world. PBS can be a showcase, she says, of America’s best for the world to see.