What is the Definition of Sustainability?

A) Covering expenses with TeacherLine programs generated revenue

B) Covering expenses with program generated revenue and non-DOE grant funds

C) Covering expenses with products made from renewable forest products.

D) Covering expenses with revenues made from sustainable fish farms

What is the Definition of Sustainability?

A) Covering expenses with TeacherLine programs generated revenue

B) Covering expenses with program generated revenue and non-DOE grant funds

• Sustainability at the National Level• DOE Grant Goals• Progress on National Sustainability • Critical Levers

• Sustainability at the Local Level• Introduction to Local Sustainability Model • Critical Levers for GY03

• Department of Education grant was awarded in August 2005 to support the TeacherLine program

• Eduventures was hired to advise PBS and TeacherLine on:• Financial performance• Progress towards sustainability• New product pricing models

• PBS and Eduventures developed a comprehensive financial model to assess progress towards sustainability• Model forecasts program inflows and costs required for sustainability • Each quarter the model is updated with actual results and efforts to meet

sustainability are assessed and monitored

Sustainability Goals Were Set As Part of DOE Grant

• PBS National is committed to achieving sustainability system-wide

• Enrollment and revenue goals were set to measure progress• Goal is to move towards revenue sustainability in increments of 20%

over five years • Local stations are critical in meeting those goals

• Both PBS and locals stations have influence on how those goals are met• National has indirect influence on increasing distribution and direct

influence on controlling costs• Local stations have direct influence on increasing distribution and

indirect influence on controlling costs

TeacherLine is Focused on Sustainability at Both National and Local Levels

Progress

Look for efficiencies and scale

Lowers program costsExpenses

Effectively predict course demand; migrate learners to alternate courses or national courses when there is not sufficient local course demand

Increasing the average enrollment per course leads to more efficient (and more profitable) courses

Course Size

Minimize discounting to capture maximum value without losing learners

Optimal pricing contributes directly to program revenue

Average Course Price

Enroll new learners, encourage repeat learners

Increased total enrollment contributes directly to revenue

Total Enrollment

How to Move ItEffectLever

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Progress is Being Made On Levers that Affect Program Distribution

9,7868,850

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

GY01 GY02

Enrollments

GY 2 Enrollments Were Up Almost 11% Over GY 1

$0

$50

$100

$150

$200

$250

Fall2004

Win.2004

Spr.2005

Sum.2005

Fall2005

Win.2005

Spr.2006

Sum.2006

Fall2006

Win.2006

Spr.2007

Sum.2007

Average Course Price

Average Course Price for GY02 Was $185, Compared to $176 in GY01

0

5

10

15

20

25

Fall2004

Win.2004

Spr.2005

Sum.2005

Fall2005

Win.2005

Spr.2006

Sum.2006

Fall2006

Win.2006

Spr.2007

Sum.2007

National Course Average Local Course Average Combined Course Average

Average Course Size GY02 Was 15, Compared to 16 in GY01

$6,905,581

$6,354,181

$3,346,749

$1,865,431

$909,614

$542,103$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

GY01 GY02 GY03 GY04 GY05

Projected Program Sales Estimated Program Sales

Last Year, Program Sales Were Estimated and Only Included Enrollment Fees

$1,316,571

$6,905,581

$6,354,181

$3,346,749

$1,865,431

$909,614

$884,981$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

GY01 GY02 GY03 GY04 GY05

Projected Program Sales Actual Program Sales

Actual Program Sales Tell a More Accurate Story

$1,316,571

$6,905,581

$6,354,181

$3,346,749

$1,865,431

$909,614

$884,981$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

GY01 GY02 GY03 GY04 GY05

Projected Program Sales Actual Program Sales Revised Program Sales Goal

Two Years Into the Grant, a Revised Goal is More Realistic

Grant Year 1 Grant Year 2Inflows Program Sales 884,981$ 1,316,571$

Expenses Program Expenses 3,273,308$ 3,826,013$

Sustainability 27% 34%

Enrollment Summary Local 5,525 5,739 National 3,325 4,047Total 8,850 9,786

Calculating Sustainability at the National Level: A Snapshot

* Excluded grant carry forwards and Program Evaluation costs from sustainability calculation

• Sustainability at the National Level• DOE Grant Goals• Progress on National Sustainability • Critical Levers

• Sustainability at the Local Level• Introduction to Local Sustainability Model • Critical Levers for GY03

A Local Sustainability Model is in Development!

• PBS National and Eduventures are developing a sustainability model for use at the local station level

• The model is based off the National model and will include station specific information such as:• Program inflows• Program expenses• Program metrics• Progress towards sustainability

• Similar to national model, it will NOT include:• Overhead Fees (i.e., rent, utilities, etc)• Local Innovation Funds

• Purpose: To provide an annual picture of sustainability at the station level

• Audience: Any SRC, local course provider or promotional station

• Requirements: Program inflows and program expenses

• Next steps: Currently being tested with station data, revised version ready by early November.

Will be used on an annual basis in GY03 and optional move to quarterly basis in GY04

Local Model Will Provide an Annual Picture of Sustainability

Grant Year 1 Grant Year 2InflowsProgram Sales 317,285$ 329,568$

ExpensesProgram Expenses 241,120$ 286,200$

Sustainability 132% 115%

Enrollment SummaryTotal 1,619 1,432

Calculating Sustainability at the Local Level: A Case Study

* Excluded DOE grant from sustainability calculation

Local Stations Have Direct Influence on Program Distribution

• Similar to the National level, local stations have the ability to have a considerable impact on TeacherLine program sales and efficiency at the local level

• The main levers for sales are:• Lever 1: Course fees• Lever 2: Total enrollments

• Program efficiency is driven primarily by:• Lever 3: Average course size

There Are Alternate Ways to Increase Program Sales

• Repeat learners are a cost-efficient way to increase overall enrollments. Factors that contribute the most to learners returning are:• Setting expectations for success• Enrollment experience• Course experience• Customer support

• Course licensing and Peer Connection• Lower expenses (no facilitator fees, no course platform costs and no

e-commerce fees)• Reduced post-sales management• Minimal customer support costs

Over Fifty Percent of Learners Have Enrolled in More than One Course…

• Fifty-four percent of enrollments have come from repeat learners

• Twenty-three percent of enrollments are from learners enrolled in two courses

• Thirteen percent of enrollments are from learners enrolled in three courses

Percent of Enrollments by Number of Courses (All Learners)

46%

23%

13%

7%

3%

2%

1%1%

1% 3%1% 1 course

2 courses

3 courses

4 courses

5 courses

6 courses

7 courses

8 courses

9 courses

10 courses

10+ courses

Progress

Course Size

Average Course Price

Total Enrollment

GY02GY01Lever

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A Look Back: Progress is Being Made On Levers

% Change

8,850 9,786 11%

$176 $185 5%

16 15 -6%

How Many Letters Are in the Word “Sustainability”?

Sustainability is not a four-letter word!!