The head of WBUR is warning that Boston’s NPR station may need to resort to layoffs, because the media outlet grapples with a significant drop in sponsorship revenue.
WBUR is the newest station that’s coping with monetary woes — which has been impacting information organizations all throughout the nation, resulting in buyouts and layoffs.
Similar cost-cutting measures may very well be coming to the Boston NPR station, however no ultimate choices have been made.
WBUR CEO Margaret Low in a letter to donors on Wednesday defined the difficult monetary scenario for the outlet. WBUR’s on-air sponsorship revenue has plummeted by about $7 million in recent times.
“At WBUR we’ve seen a dramatic loss of sponsorship support,” Low wrote within the letter. “In the digital age, nearly all that cash now goes to the massive platforms — like Facebook, Google, Amazon and Spotify.
“This is bad news for the news business and has created big gaps that can’t easily be filled,” the CEO added. “In the last five years, our annual on-air sponsorship income (underwriting) has dropped by more than 40% — nearly $7 million.”
Low admitted that the sponsorship revenue won’t return to the earlier increased ranges. As a consequence, the station is exploring the whole lot from job cuts to a hiring freeze.
“As I shared with my colleagues at a recent all-hands meeting, given our current economics, we’ll likely need to make some tough choices in the coming months,” the CEO wrote. “That could include everything from freezing open positions to eliminating jobs.”
There have been many reviews in current months of buyouts and layoffs throughout the media panorama. That included The Washington Post, The Wall Street Journal, and Los Angeles Times. Last month, NPR station WAMU in Washington, D.C., introduced layoffs.
In the letter to WBUR donors, Low was asking them to spice up their financial help.
“This is a different story than we’ve told before,” the CEO wrote. “It’s unlike our usual on-air fundraising appeals. The stark reality is this — in order to survive, we need the people who count on us every day to dig deeper than they ever have before. We must rely more heavily on our members now. We also need our loyal fans who’ve never given to do so.”
“We’re in a race against time,” Low later added. “But we see a path forward and know that philanthropic investment is key. My hope is for the kind of support that would help secure the future for WBUR. An organization that is beloved and trusted by millions of people in Boston and beyond.”
Low additionally identified that solely 3% of WBUR’s annual finances comes from the Corporation for Public Broadcasting.
“It’s a common misperception that public radio is largely supported by government funding,” the CEO wrote. “That’s not the case.”
Source: www.bostonherald.com”