WMUK Master Strategic Plan 2020-2022 - Western Michigan ...
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WMUK Master Strategic Plan 2020-2022
Final Revision Date: 20191114 | S. Williams
Mission:
To share knowledge, explore ideas and tell compelling stories that engage listeners and
communities across Western Michigan and beyond.
Vision:
To become the regional NPR station of choice for a growing community of public radio listeners
and supporters.
Executive Summary:
WMUK 102.1 FM is at a major crossroads in its 68-year history. As the result of a long strategic
analysis of our market position, the data is clear that the Station faces significant challenges and
opportunities. WMUK possesses many strong assets, most notably per Livingston Associates’
Strategic Assessment Report, a committed staff and important focus on local production.
However, research from that report, and other analyses, has proven that the Station is clearly
losing audience share to Michigan Radio with its news-talk format. Critically, the gradual loss
of listenership has led to increasing difficulty attracting on-air contributions, at a time when
Station expenses continue to outpace revenues. Based on current business model projections by
Public Media Company, WMUK will continue to experience severe budgetary strain over the next
2-3 years, with an unsustainable operating loss beginning in FY2023.
After extensive research and analysis, we have completed our assessment, and have mapped
out the strategic direction WMUK needs to take to reverse this trend, and ensure the Station’s
long-term financial solvency.
The good news is that WMUK is in fact well-positioned to expand the reach of its programs and
the services it offers. Our research shows a strong demand for news and information service for
Southwest Michigan, and an ability to reverse listener attrition to Michigan Radio, and
corresponding revenue declines, and effectively provide a differentiated stream of services that
will appeal to both our core news and classical music listenership. These findings were made
clear in both the Strategic Assessment Report by Livingston Associates, a study by the WMU
Haworth School of Business, and business model research by Public Media Company.
WMUK is currently in negotiations with Kalamazoo Public Schools to purchase the radio
station license for 89.9 FM WKDS. With the purchase of a second station, WMUK will be
positioned to offer a predominantly news/talk format on 102.1 FM, as well as a full-time
classical format on 89.9 FM. Doing so ensures that WMUK is able to expand its service offerings
to both our city of license, and the broader region covered by our primary signal.
WMUK Master Strategic Plan | FY2020-2022
Page 1 of 20We also plan to expand our cultural coverage on our main 102.1 FM channel, and have taken
initial steps by consolidating our news and arts staff into a unified content team. In so doing,
we’ll be able to ensure that the quality arts interviews and in-studio recordings can be shared
with a wider audience, through short-form segments that can air during Morning Edition and All
Things Considered.
Based on these findings, our three-year plan is as follows:
a.) Launch two programming streams on January 20, 2020:
a. WMUK 102.1 FM: Dedicated to news plus public radio talk, and non-
classical music and entertainment, and
b. WMUK 89.9 FM and WMUK HD-2: Committed to classical music and other
arts programming,
b.) Implement critical changes to WMUK’s news and content processes via our newly
unified content team, as well as other internal reorganization efforts designed to
streamline our effectiveness,
c.) Market a revitalized and strong overall brand identity,
d.) Utilize the new formats for WMUK and WKDS to grow the station’s overall
audience share and therein revenues, and
e.) Align WMUK’s programming to its new mission and vision.
Regardless of WMUK’s ability to permanently acquire a second FM signal, we will change the
format of 102.1 FM signal on January 20, 2020 to one predominantly targeted at news and
information. This plan aligns the Station with the only growth trajectory identified in our
research and our business modeling scenarios.
Moreover, this Master Strategic Plan will result in an unprecedented paradigm shift across our
public media organization. Functionally, WMUK will transform from an arts organization
that provided news coverage … to a news organization that includes coverage of the arts.
The good news is that WMUK was awarded a $250,000 grant from the Irving S. Gilmore
Foundation to purchase WKDS 89.9 FM, and make our plans to provide devoted news and
classical music services for our listeners a reality.
In conclusion, we believe WMUK is well-positioned to successfully execute this plan for the
next two fiscal years. It is an incredibly exciting time to be in public radio at Western Michigan
University. WMUK has a passionate, dedicated staff, with significant potential for growing our
current audience through enhanced programming options – as well as attracting new public
radio listeners who currently show a preference for our market competitor, Michigan Radio
(WVGR 104.1 FM). Importantly, the changing landscape in local journalism across Southwest
Michigan and Northern Indiana offers opportunities to expand our public service and deepen
our impact.
WMUK Master Strategic Plan | FY2020-2022
Page 2 of 20SECTION 01: Background
With the support and encouragement of Western Michigan University, WMUK 102.1 FM began
a Strategic Planning Project in Fall 2017, with the stated goal of evaluating and adjusting the
strategic position, operations and programming of the Station to grow our audience and
revenue, and enhance our service to listeners across the region. This work was done in
partnership with outside consultants, including Livingston Associates and Public Media Company.
This has been one of the most ambitious strategic planning process in the organization’s history
– taking a deep look at who we are, where we are, and where we are going. The primary
outcome of our research is the understanding that Kalamazoo and the surrounding
communities of Southwest Michigan have two imperative needs, which WMUK’s FY2020-2022
Strategic Plan seeks to address.
The first and most pressing need is for a locally-based news outlet that provides up-to-the-
minute news and information, and coverage of important local stories as well as in-depth
reporting and analysis. WMUK is among one of the very few media outlets based in our region
that is capable of providing this service. Unfortunately, WMUK’s current format hampers its
ability to provide a consistent program service primarily focused on this purpose.
Since the mid-1990s, the public radio industry has been moving towards a focus on news and
information programming. This industry change has reflected a broad shift in listener
preferences away from classical music programming, in favor of NPR News and other
information and talk-based programming. Virtually all audience growth in the public radio
industry has occurred by public radio stations that have embraced this change towards news
and information.
At the time of this industry-wide transformation, WMUK 102.1 FM did not make this shift
along with our industry peers, and consequently the Station’s audience and revenue trend over
the past ten years has been stagnant or in decline – as increasing numbers of public radio
listeners in our market shift their listening to our market competitor, Michigan Radio.1 As a
result, our ability to maintain our relevance for our listeners, and provide an effective service
based on an increased appetite for news and information, has been negatively impacted.
Of no less importance is the need for WMUK to expand its local journalism efforts, particularly
in light of the retreat of other local news outlets, such as the Kalamazoo Gazette, as well as the
inability for Michigan Radio to effectively cover Southwest Michigan to the extent WMUK can.
The second need, which is closely related to the first, is that our split format poorly serves the
community of listeners who primarily tune to WMUK for music, arts and cultural
1
Michigan Radio, based in Ann Arbor, is licensed to the University of Michigan Regents, and has a West Michigan FM repeater
station: WVGR 104.1 FM. WVGR’s signal overlaps significantly with WMUK’s primary 102.1 FM signal. Michigan Radio has
aggressively expanded its coverage, underwriting and marketing efforts in our region, resulting in audience loss for WMUK.
WMUK Master Strategic Plan | FY2020-2022
Page 3 of 20programming – particularly classical music. WMUK has long been a home to classical music,
but the divergent interests of the majority of public radio listeners vs. the arts community of
Kalamazoo, has brought the Station to a crossroads.
The most recent Nielsen audio reporting reveals that WMUK’s current cume is approximately
25,400 persons in the Grand Rapids-Kalamazoo market.2 Our research revealed that there is a
significantly larger potential audience of public radio listeners (over 43,000 listeners in one
sampled audience period in Fall 2017) who actively tune to Michigan Radio but not WMUK.3
In 2017, with support from the Irving S. Gilmore Foundation, WMUK undertook a three-phase
Master Strategic Planning Project to research, evaluate and implement fundamental changes
that will provide long-term sustainable improvements to WMUK’s market position.
We primarily engaged Baltimore-based Livingston Associates, the leading public radio consulting
firm in the U.S., to provide this service. We additionally commissioned listener research by a
Los Angeles-based Nielsen ratings analyst, as well as on the ground listener surveys, focus
groups and market analysis by a specialized student-led research team from the WMU Haworth
School of Business. The findings from these separate studies strongly correlated with each other,
and were incorporated into the final Strategic Assessment Report by Livingston Associates.
Among the findings of Livingston’s report was confirmation that our current mixed news-
music format is exacerbating listener declines across WMUK’s schedule:
“… [WMUK] clearly seems to be in a challenging and potentially threatening existential moment. WMUK
appears to be losing audience (and possibly the loyalty of the audience they do have) to Michigan Radio,
with its clearer, all news/talk format. While the staff is divided about how serious the competition from
Michigan Radio is, we believe the situation is extremely serious. Perhaps most directly, WMUK is
experiencing increasing difficulty attracting on-air contributions during pledge drives.
The programming of WMUK, specifically the multiple formats presented, is dramatically counter to
current public radio practice and conventional wisdom regarding how to attract and retain audiences, and
from there to generate listener support.
This immediate challenge of competing with the more focused Michigan Radio is happening in the longer-
term context of the massive and ongoing conversion to digital platforms, which removes any exclusivity to
any content that WMUK does not generate itself.
Our concern is that WMUK’s programming practices, including trying to offer something for everyone
and offering a service that is challenging to listen to, will weaken the service to the point where it will be
difficult if not impossible to be able to successfully navigate the digital transition.”
Excerpt from Strategic Assessment Report, June 19, 2018, Livingston Associates
2 Spring 2019 Diary // Note: “Cume” is the estimated number of different listeners that tune in during a daypart in an average week,
sometimes called “reach” or “circulation.”
3
“Performance Indicators / Key Findings” in Strategic Assessment Report to WMUK 102.1 FM by Livingston Associates, June 19, 2019
WMUK Master Strategic Plan | FY2020-2022
Page 4 of 20The above findings were based upon extensive research and data showing consistent trends and
audience data confirming a serious programming challenge for WMUK’s current hybrid
news/music “split” format. This data clearly revealed that a majority of our listeners prefer
and show a clear preference for more news and information programming. It also revealed
that our mixed news/music format is serving both audiences poorly, leading to defections by a
growing number of listeners to our chief competition, Michigan Radio.
At present, one of the greatest areas of friction between our core news (P1) and music (P2)
listeners is the fact that these two core groups listen to WMUK for very different reasons.4
According to Livingston Associates’ Strategic Assessment Report, WMUK’s current shift between
news and music formats throughout different time blocks (i.e. “dayparts”) creates an erratic
program schedule that only serves to disconnect the Station from our core audience: “This
creates “seams” (or programming changes) in listening for audiences that reduce consistency in schedule,
and result in listener attrition.” (Livingston, pg. 12)
Our independent research by the WMU Haworth School of Business verifies this conclusion, citing
WMUK’s shift to music at midday being a large reason why the Station performs relatively
strongly in the “AM Drive” daypart (6a-9a), but poorly throughout the rest of the day –
particularly when our weekday broadcast schedule transitions from news to midday classical
music programming at 10 am.
Ultimately, WMUK’s attempt to balance news, talk and music has not satisfied its listeners,
particularly among P1 and P2 listeners who have divergent program interests. These findings
were shared at the end of Strategic Planning Phase I with Station management, staff, and the
administration of Western Michigan University (the license holder, or licensee, of WMUK).
During Phase II of our work in 2018 and 2019, the Station took the recommendations by the
Haworth School of Business, our public radio audience data analysis, and our industry consultant
(Livingston) to develop a plan of action to ultimately halt listener attrition to Michigan Radio,
reverse overall declines in listening, and address stagnant revenues in membership and
underwriting.
As noted at the start of this section, the paradox for WMUK lies in the urgent need to adjust
WMUK’s program schedule to make a fundamental shift towards a consistent news and
information format … while at the same time maintaining a source of consistent music
programming for the vibrant arts community in Kalamazoo.
4P1 and P2 refers to station preference. P1 or “first preference” listeners are people who listen to the station more than any
other group. In this case, generally during news programming dayparts. According to Nielsen, “they make up just 10
percent of the overall radio listening audience but account for over 35 percent of total market listening.” P2 (“second
preference”) refers to listeners who tuned to WMUK the second most, in this case for classical music during weekdays.
WMUK Master Strategic Plan | FY2020-2022
Page 5 of 20At first glance, these goals appear to be divergent, resulting in displeasing a significant number
of our audience no matter which path we follow. However, we believe that the acquisition of a
second FM signal resolves this dilemma, and our business model shows that it will in fact lead
to long-term growth for WMUK as a whole.
Based on the Phase I findings, WMUK engaged Public Media Company (PMC) – a leading
consultation firm that specializes in mergers and acquisitions of public media assets – to search
for available FM signals for purchase in the Kalamazoo, Lakeshore and Grand Rapids regions.
This “market scan” was conducted by PMC in August 2018. After reviewing candidate FM
signals, and perspective buyers, it was quickly ascertained that WKDS 89.9 FM would be the
best candidate for acquisition.
WKDS is a 140-watt non-commercial station licensed to Kalamazoo Public Schools, and
operated by Public Media Network (unaffiliated with Public Media Company) in the downtown
Epic Center through an agreement with the Kalamazoo Regional Educational Service Agency'
(KRESA). Public Media Network’s (PMN) role was to manage day-to-day operations for WKDS
as a high school station for students in the Kalamazoo area. The student station was part of a
Radio Broadcasting course run by PMN as part of KRESA’s Education for Employment program. 5
In 2018, KRESA and PMN made the decision to discontinue the educational course that
provided the majority of programming for WKDS, in favor of a unified audio and video Media
Production course. This development coincided, though was unrelated to, WMUK’s search for
a frequency for a second FM signal. As a result, the continued purpose of WKDS became a
question for its owner (KPS).
In the fall of 2018, WMUK began discussions with Kalamazoo Public Schools regarding the
possibility of acquiring WKDS 89.9 FM. Doing so would simultaneously solve multiple
fundamental challenges for the Station in coming years – most notably allowing for the main
102.1 FM frequency to shift focus to news and information (while retaining some non-classical
music programming overnights and weekends), and creating a dedicated music channel largely
devoted to classical music and other genres.
We commissioned Public Media Company to generate a valuation of the cost of WKDS 89.9 FM.
After an initial estimate of approximately $310,000 (midpoint estimate), we hired an
engineering firm to do further study, which revealed a lower potential number of listeners to
WKDS. This lowered the estimate for WKDS significantly to approximately $175,000 (midpoint
estimate). Even with the reduction in purchase price, this represents a significant cost for
WMUK.
Before committing to a capital asset acquisition of this magnitude, Station management wished
to seek confirmation that such a move would result in the desired outcomes. Therefore, we
5Disclosure: WMUK’s General Manager is a member of the Advisory Board for this EFE program, however, this is a
volunteer capacity only and not directly related to negotiations regarding the purchase of WKDS.
WMUK Master Strategic Plan | FY2020-2022
Page 6 of 20commissioned Public Media Company to conduct a business model analysis, envisioning three
possible scenarios:
Scenario 01: WMUK stays the same, and makes no change in programming.
Scenario 02: WMUK shifts its main format to news and information, with on-air classical
music programming being significantly reduced / minimal FM presence (in essence, moving
classical to digital-only channels).
Scenario 03: WMUK shifts its main format to news and information, and acquires a second
FM signal (WKDS 89.9 FM) dedicated to classical music and the arts.
PMC engaged in a comprehensive look at WMUK’s financial, audience and market data,
including operating expenses and revenues over the past three years. Their data analysis
revealed the following:
Scenario 01 business model projections reveal this to be the worst option of the three, and
unsustainable beyond the next 3-4 years. The Scenario 01 model factors in projected declines in
listenership and stagnant revenues (consistent with current trends), continued reduction in
WMU ($10,000/year) and CPB support, and generally increasing programming, management
and general costs due to inflationary adjustments. The net outcome is that expenses will
continue to outpace revenues at an alarming rate. The model predicts that Scenario 01 will
result in the station running an estimated $30,000 deficit by FY2023 to an $86,000 deficit in
FY2030. According to PMC, the Station will generate a cumulative deficit of nearly $600,000
between FY2020 and FY2030 (reduced to a $500,000 deficit if WMU subsidies stay the same).
Scenario 02 projections are somewhat more favorable than Scenario 01, but still represent a
cumulative loss of $280,000 during a two-year transition period, followed by positive net
income in successive years. The Scenario 02 model projects net income averages of $77,000 per
year by FY2030, factoring in a $10,000 per year reduction in WMU direct funding.
Scenario 03 is by far the most favorable outcome, with relatively few downsides –
particularly as funding has been secured to purchase WKDS from Kalamazoo Public Schools
(KPS). It largely follows the modeling assumptions of Scenario 02, but has the distinct
added benefit of limiting the loss of classical listeners – and even improving their loyalty
and financial contributions (donations).
In November 2019, the Irving S. Gilmore Foundation approved a $250,000 grant request by
WMUK 102.1 FM to acquire WKDS for the purpose of providing classical music on a separate
frequency from the parent station. This amount will pay for a negotiated $191,000 in capital
asset, leasing and other costs to KPS, per our signed Letter of Intent with the school system
(dated September 2019). Included in this amount is $20,000 towards the creation of a student-
run internet radio station at PMN headquarters, allowing Kalamazoo area students to continue
an educational experience in broadcasting via KRESA’s Education for Employment program.
Therefore, we see Scenario 03 as immediately viable from an operational standpoint.
WMUK Master Strategic Plan | FY2020-2022
Page 7 of 20Under Scenario 03, the breakeven point for WKDS’ stand-alone operations would be reached
fairly quickly (within 18 months). Revenues from this second station’s operations would
increase from $13,000 in FY2021 to $66,000 in FY2030. WMUK’s overall operations for both
stations would generate an initial deficit within the first 30 months of operating, but would
become net positive by FY2023 – with continued growth projected through FY2030. PMC
anticipates a cumulative deficit of approximately $240,000 by the end of FY2022. The Station
will seek additional support from the WMU Foundation to offset these costs.
Given this is the most positive outcome of the three scenarios contemplated, PMC recommends
WMUK pursue Scenario 03 (convert 102.1 FM to news, and acquire 89.9 FM for classical music),
based on the projections from the data-driven business model, with Scenario 02 as a secondary
option. Scenario 01 (Stay the Same) is not a viable option for WMUK, and would result in
unsustainable deficits losses within the next five years.
Therefore, WMUK is committed to pursuing Scenario 03, with the desired results explained in
the following section. We have already begun this process, and view this work as the
foundational level of the Master Strategic Plan. Having completed Phases I (“Assessment”) and
Phase II (“Strategic Planning”), the third and final phase (“Implementation”) of our Master
Strategic Plan will be identified as “Relaunch 2020.”
WMUK Master Strategic Plan | FY2020-2022
Page 8 of 20Section 02: Goals and Strategies
WMUK has already developed a plan of action for achieving the strategic goals set out in the
previous section. This plan is laid out in the following sections.
Goal 01: Second FM Signal Acquisition
The cornerstone of WMUK’s three-year strategic plan is the purchase and acquisition of WKDS
89.9 FM.
WMUK is currently in negotiations with Kalamazoo Public Schools to purchase the FCC radio
station license for 89.9 FM WKDS. With the purchase of a second station, WMUK would be
positioned to offer a predominantly news/talk format on 102.1 FM, as well as a full-time
classical format on 89.9 FM. Doing so ensures that WMUK is able to expand its service offerings
to both our city of license (Kalamazoo), and the broader region covered by our primary signal.
We will accomplish this by taking the following steps.
Finalize Asset Purchase Agreement between WMU and KPS
As of September 2019, Western Michigan University (WMU) and Kalamazoo Public Schools
(KPS) endorsed a non-binding Letter of Intent for WMU to purchase WKDS 89.9 FM.
This acquisition by WMU, on behalf of WMUK 102. FM, would include the Station’s FCC
license, and all of the associated assets (e.g. transmitter, broadcast equipment, etc.). The total
value of the proposed sale is $191,000. The sale price would be paid to KPS as follows:
1. Immediate payment of $125,000 at close of sale.
2. Monthly lease of $1,500 to KPS for use of current WKDS studio and transmitter facilities
at Loy Norrix High School for 24 months. Total value of $36,000.
3. On-air promotional underwriting on WMUK 102.1 FM for one year, valued at $10,000 in
trade value.
4. Payment of $20,000 to KPS to convert WKDS’ current student station to an internet-
based radio station, with newly acquired equipment. As part of the Media Production
course, KRESA will continue to manage the student radio program, through Public
Media Network’s studio facilities.
5. WMUK will work to provide opportunities for WMU academic course credits for
students who complete the Media Production course successfully.
In November 2019, WMUK received approval for grant funding from the Irving S. Gilmore
Foundation that will cover substantially all of the direct acquisition costs outlined above. This
funding is contingent on the asset purchase agreement and transfer of license being approved
by the WMU Board of Trustees and the KPS Board of Education.
WMUK Master Strategic Plan | FY2020-2022
Page 9 of 20Establish Temporary Operating Agreement with KPS
Negotiating a final asset purchase agreement will take approximately 4-6 months, including the
time needed to gain final approval by both the WMU Board of Trustees and the KPS Board of
Education. This includes the time required for legal counsel review by both parties, as well as
ultimate FCC approval (which typically takes 60 to 90 days). As noted in the previous section,
WMUK has already had approval for a capital asset grant request to purchase WKDS 89.9 FM
via the Irving S. Gilmore Foundation Trustees. This grant award will help to ensure the fastest
possible approval process by WMU and KPS.
Given declines in revenues we are already experiencing, as well as preparations that have
already been made, WMUK Station Management has determined that the optimal time to do a
“soft launch” of WKDS is no later than December 2019, with a “hard launch” of WMUK’s new
format on January 20, 2020. Given the timing needed to finalize the purchase agreement for
WKDS, we will need to move quickly to begin programming classical music on WKDS 89.9 FM.
To resolve the issue of timing for approval of the sale, WMU and KPS will enter into a
temporary Time Brokerage Agreement (TBA). Under this interim agreement, WMUK will
operate WKDS, with the option to purchase the station from KPS at the agreed upon price (see
previous section). Under the TBA, WKDS is still under the ownership of Kalamazoo Public
Schools and therefore still responsible for FCC compliance, pending approval of the sale to
WMUK 102.1 FM.
Functionally, this is a sort of time-buy arrangement, to facilitate an easier transfer of the asset
from KPS to WMU – with minimal programming schedule disruption for our listeners.
Goal 02: Format Change
Concurrent with Goal 01, WMUK will implement a format change that will result in effectively
differentiating its main programming into two channels, as follows:
News and information on WMUK 102.1 FM: Centered on news and information
weekdays from 5 am to midnight. Acoustic and world music would continue on
weekends, with jazz overnights.
o Increased focus on creating a unified content team would result in improved
local journalism, which will programmatically fit better with news and
information content from National Public Radio and other news programs.
Classical on WMUK HD2 / WKDS 89.9 FM (working title: “Classical WMUK”): A new
format dedicated primarily to classical music, as well as other arts and music genres
where appropriate. This will be, to our best knowledge, Kalamazoo’s first station
devoted to classical music 24/7.
WMUK Master Strategic Plan | FY2020-2022
Page 10 of 20o WKDS’ 140-watt signal is considerably weaker relative to WMUK’s 50,000 main
signal, and therefore only covers most of Kalamazoo and Portage.
o To resolve coverage issues, WMUK will simulcast this program stream on
WMUK HD-2. This ensures that classical music listeners in areas that cannot
receive 89.9 FM will still be able to listen over the air via HD radios.
Additionally, “Classical WMUK” will be made available on WMUK’s mobile app
and online streaming (replacing our current WMUK-2 program stream of news
and music).
o However, listeners in our city of license (Kalamazoo), where most of our core
listening occurs, will not need such radios – providing a significant cost and
convenience factor for those classical listeners.
This goal is being executed between October 2019 and January 2020, with the following desired
programming outcomes:
Expanded News Programming: The splitting of the music and news formats will allow
us to broadcast additional news programming on 102.1 FM. The most widely listened to
programs that will be added to the schedule are NPR’s On Point, Fresh Air and 1A. Also
joining our new lineup is Public Radio Exchange’s (PRX) The Takeaway, and American
Public Media’s (APM) The Daily. Costs will be partially offset by introductory fee
discounts by NPR, APM and others network distributors, for new program carriage.
These fees will be gradually phased out over 2-3 years. Our business model anticipates
that revenues will begin to rise over the same period to match.
o The Saturday afternoon lineup will include a new block of “infotainment”
programming at 1:00, including This American Life, Radiolab, and Milk Street Radio.
Additionally, Live Wire and Fresh Air Weekend will replace APM’s Live from Here
on Saturday evenings.
Expanded Music Programming: WKDS 89.9 FM and WMUK HD-2 will feature both
locally-hosted and nationally-syndicated classical music programming. Much of the
schedule will be supplemented by APM’s Classical24 syndicated classical music service,
as well as Performance Today and Performance Today Weekend. Live Detroit Symphony
Orchestra, Metropolitan Opera and other opera programming will also move to this new
service. New programming to be added includes Pittsburg Symphony Radio from PRX, as
well as APM’s SymphonyCast and PipeDreams.
o Weekend non-classical music programming on 102.1 FM will largely remain
unaffected, with the locally-hosted Grassroots, Alma Latina and The Pure Drop
retaining their current timeslots at the present time.
WMUK Master Strategic Plan | FY2020-2022
Page 11 of 20Goal 03: Audience & Revenue Growth
An axiom within the public radio industry is that the longer people listen, the more they give. We
already have research that tells us that listening on our main FM channel will greatly increase
by switching to a predominantly news-oriented format. Doing so, in conjunction with creating
a second FM station dedicated to music, will allow WMUK to serve a significantly wider
audience of listeners, and better serve Kalamazoo and surrounding areas.
Most importantly, it will provide the financial security WMUK needs for its long-term survival.
The cornerstone of this strategy is the purchase of WKDS 89.9 FM for the dedicated purpose of
music and arts programming.
PMC’s research reveals that this would yield the most positive and sustainable revenue
projections within the next 5-10 years. Again, we believe that under this scenario, the listening
experience for news and music audiences both will be improved significantly with little cross-
format interruption. This will result in a stronger service for both formats, meeting the needs of
our P1 (news) and P2 (music) listeners,6 as well as serving the need for local journalism and arts
programming for the communities we serve.
PMC projects that this scenario may involve a short-term deficit due to the initial capital
expenditure (if we are unable to obtain grant funding for the WKDS purchase), followed by net
positive cash flows in successive years:
“WKDS stand-alone operations are projected to have a break-even budget in the first 18 months
of operations, followed by consistent but modest growth in net income, improving from $13,000
in FY2021 to $66,000 in FY2030. The capital expenditures of $145,000 for the purchase of the
license, $20,000 for new equipment and transmitter move (Note: These costs are estimated and
will be refined later this winter) and other acquisition costs are projected to be paid by the
$250,000 that has recently been approved by The Irving S. Gilmore Foundation. Overall,
WMUK, coupled with WKDS, generates a deficit from operations in the first 30 months
of operating, turning positive in FY2023 with cumulative deficits of $240,000 by the end of
FY2022.”
Excerpt from “Sustaining and Expanding Public Radio Service in Kalamazoo, Michigan”
(pg. 6), September 5, 2019, Public Media Company
WMUK is currently in discussions with the WMU Foundation to seek additional financial
support to offset the anticipated deficits noted above. This could potentially include support
for WMUK’s Development efforts, which align closely with the Foundation’s mission.
Currently, WMUK works closely with the WMU Foundation, which manages our member
6 See earlier footnote on P1 vs P2 preference listeners.
WMUK Master Strategic Plan | FY2020-2022
Page 12 of 20donations and coordinates with us major giving efforts. Therefore, we see this as a prime
opportunity to further deepen our relationship with a valued WMU ally and partner.
PMC further projects that with the purchase of WKDS our audience would more than double
by FY2030, on an increase trajectory towards growth and financial independence. Specifically,
WMUK’s current FY2020 audience average of approximately 21,000 persons would experience a
temporary decline in FY2021 (under conservative estimates), followed by a rebound in growth
by FY2022, and a projected 7% annual cume growth for WMUK 102.1 FM (year over year). This
would result in adding approximately 30,000 new listeners to WMUK by FY2030 (for a
projected weekly audience of 51,638).
WKDS’ current audience would exponentially grow under WMUK’s ownership, virtually
overnight, given its current lack of consistent programming. Listenership to this dedicated arts
channel would increase from practically no listening, to 6,200 persons by FY2030.
This is by far the most optimistic outcome of the three scenarios envisioned. Accordingly, PMC
recommends that we pursue this strategy, with a particular warning that making no change to
our programming is not a viable option.
Should the WMU Board of Trustees or KPS Board of Education fail to approve the purchase of
WKDS, it is likely that we will be forced to pursue the second scenario, effectively restricting
our classical music service to the relatively less accessible HD-2 channel (which can be heard
only via radio tuners that can specifically receive HD Radios) and internet-only applications.
Membership Revenue
As of FY2019, WMUK had approximately 2,006 active (non-major donor) contributors, which
represents a steady decline from 2,344 and 2,262 in FY2017 and FY2018, respectively. In FY2020,
WMUK is expected to experience a dip to 1,808 for 102.1 FM, however this will be somewhat
offset by the projected addition of 123 contributors to WKDS. By FY2022 the Station is
anticipated to fully recover these losses with an aggregated 2,397 contributors (2,086 for WMUK
and 311 for WKDS).
Per PMC, following some loss of members in the first two years, the membership numbers for
WMUK grow to over 4,000 members by FY2030. Annual growth between FY2019 and FY2030 is
projected to be 8%. Over the same period, annual growth for WKDS is projected to be 7%,
growing from 250 individual givers in FY2020 to 500 in FY2030.
New members will be acquired as a result of on-air fundraising for both channels. While we are
not anticipating a need to increase the amount of on-air fundraising for either channel, our goals
and messaging will need to reflect the need to attract new members as well as retaining existing
members.
WMUK Master Strategic Plan | FY2020-2022
Page 13 of 20Corporate Support Revenue
WMUK’s underwriting revenues experienced losses in FY2018, but recovered in FY2019 (at
$200,000) with the hiring of a Corporate Support and Major Giving Manager. PMC projects that
underwriting revenues will be minimally affected by the proposed format changes for the
remainder of FY2020, with $189,953 initially total projected for the Station. By FY2021
underwriting revenues will surpass current levels with an aggregate total of $258,533 for both
stations ($198,479 for WMUK and $13,434 for WKDS). WMUK 102.1 FM will experience a
projected annual total of growth of 8% between FY2019 and FY2030, with WKDS experiencing
10% growth over the same period.
Public Media Company conducted an on-site visit in September 2019, and made the further
recommendations to grow WMUK’s Corporate Support program, based on its view that there
are considerable untapped underwriting opportunities within WMUK’s coverage area,
including industry, venues, attractions, hospitals and academic institutions.
In particular, PMC issued the following recommendations to leverage this growth opportunity,
which the Station plans to adopt (from “Sustaining and Expanding Public Radio Service in
Kalamazoo, Michigan,” pg. 7, September 5, 2019):
Upgrade the software that manages the underwriting ordering and placement process (also
known as trafficking). WMUK’s current system is antiquated, and new software would enable
WMUK to be better able to track, manage and optimally price the available underwriting
inventory (both on-air and on digital) with the goal of maximizing revenue to the station.
Deploy best practice multimedia sales strategies to optimize rates, manage available inventory,
and create new, innovative opportunities for sponsors to engage with WMUK’s audience. We
recommend bringing in an outside consultant (preferably from commercial radio, where this
type of sales practices is common) to advise on how to build underwriting overall once the final
format transition is made.
Hire or contract with an additional salesperson to do more sales outreach in the Kalamazoo
market and increase the overall number of WMUK underwriting clients. Ultimately, increasing
the volume of underwriting clients will help WMUK sell more its current inventory of
underwriting spots and allow WMUK to increase the its rates for these underwriting spots and
packages, growing underwriting revenue overall.
Major Giving
Our business model anticipates significant long-term growth in major giving between FY2019
and FY2030, increasing by 12% during this period for WMUK and 17% for WKDS. PMC
anticipates that with a full-time Corporate Support and Major Giving Manager and the
rebranding of WMUK as the only local news service, both the number of major donors and
major giving revenue are projected to grow above historical averages.
WMUK Master Strategic Plan | FY2020-2022
Page 14 of 20Goal 04: Alignment of Local Content with Mission and Vision
WMUK’s newly-stated mission is to share knowledge, explore ideas and tell compelling stories
that engage listeners and communities across Western Michigan and beyond.
We are committed to doing this through a series of strategies aimed at improving the quality of
our local coverage, so that we ensure we are providing compelling stories that people want to
hear. We believe our local news and cultural coverage capacity sets us apart from Michigan
Radio. In concert with our pivot towards a news and information-oriented format on our main
service, we believe that we will create truly compelling radio.
We will do this by implementing a series of recommendations by Judith Smelser, a public media
journalism expert, based on an assessment conducted by her in July 2019. This includes
changes in how WMUK approaches local news content and operations, both within its
newsroom and as a public media organization. The recommendations and desired outcomes
below are integrated from her final report, dated July 26, 2019:
Strategy 01: Content staff will engage more actively in our surrounding areas, including
but not limited to Kalamazoo County, with a stated goal of continually finding and
connecting new communities and walks of life.
o WMUK journalists should make it a priority and a stated expectation to spend
time physically out in the community, not to gather audio, but to talk with and
listen to people from all walks of life.
o The Station should also set a numerical target for covering communities beyond
Kalamazoo County on a regular basis, including expanding coverage of Battle
Creek.
Strategy 02: WMUK will take steps to ensure that it upholds the highest standards of
ethical journalism, and will assure the audience that its first objective is to serve the
public.
o This will not be limited to the content team, but across the organization.
Functionally, WMUK is shifting from an arts organization that covered news, to
a news organization that also includes arts coverage. We will take the following
steps to help reinforce this organizational culture shift.
o Formally adopt NPR’s ethics handbook as WMUK’s standard.
Post summaries of its tenets on WMUK’s website.
Clarify that these standards apply to all station employees, per NPR’s
recommendation.
WMUK Master Strategic Plan | FY2020-2022
Page 15 of 20 Discuss these standards with staff regularly, through hypothetical
scenarios. This will provide low-stakes opportunities for staff to become
acquainted and comfortable with these principles.
Require staff to read and sign off on these policies, but understand that
this culture change will take time. Enforcement should take that into
account.
o Adopt a formal statement of editorial independence from Western Michigan
University (our licensee), similar to those adopted by WAMU, KUER, and others.
Make the statement available on WMUK’s website as well.
Strategy 03: Public media’s greatest asset is its reputation for high-quality, compelling,
in-depth content, on-air and online. NPR audiences expect that, and local public media
organizations must meet those expectations. To that end, WMUK will:
o Adopt a robust start-to-finish editing process for all content on all platforms.
This involves bringing intentionality to coverage choices through a thorough
pre-editing process and an equally thorough script and audio editing process
based on NPR best practices.
o Redirect resources toward content with higher production values. This type of
content takes longer to produce, so this focus may result in a reduction of
minutes of on-air local news, but this is an acceptable tradeoff because the end
result will be more memorable and impactful. Specifically we will strive towards:
A better balance between produced audio features and the current
preponderance of long interviews
High-value digital-specific content when possible
Periodic single-issue news series
Strategy 04: More efficiently deploying staff resources during WMUK’s most listened-
to programs, Morning Edition and All Things Considered. We will do this by taking
the following steps (some of which are already being implemented):
o Limiting longer newscasts to peak audience listening hours, with headlines at
other local newscast breaks. This maintains WMUK’s news presence during
morning and afternoon drive (peak listening hours), in order to reduce repetition
and create a greater proportion of local content (over content from the Michigan
Public Radio Network or other stations). This change will allow the relative
proportion of local content to increase, without increasing local spot production.
WMUK Master Strategic Plan | FY2020-2022
Page 16 of 20o Staff NPR’s Morning Edition and All Things Considered with one live local
host each. WMUK’s news staff is too small to dedicate two people to host
Morning Edition, especially when All Things Considered has previously been
largely unmanned. Both programs should have one live local host, allowing for
more local presence, more opportunity to forward promote upcoming local and
national stories, and more opportunity for timely local news insertions.
WMUK has already implemented some of these hosting changes, and has
additionally planned for the hiring of a full-time Morning Edition Host /
Reporter position.
o Scale back newscast production. Just as the public media audience expects high
quality, in-depth content, it expects to be informed about the important stories of
the day in a timely and efficient manner. WMUK must therefore continue to
provide high-quality daily news, but it can do so more efficiently by taking the
aforementioned steps.
Strategy 05: WMUK will improve promotions of our local news content as well as
upcoming content on NPR programs, by using valuable availabilities during AM and
PM drive, as well as during new programs that will be joining its midday schedule.
o We will accomplish this through a variety of methods, including generic promos,
story-specific promos, reporter-specific promos, etc.
o Not only does this tell the audience what WMUK is doing and when, but it also
reminds them regularly that WMUK is a crucial provider of news and
information about the community and region.
o Social media is another great avenue through which to promote content and
engage with the community. WMUK should explore these possibilities based on
best practices.
Strategy 06: WMUK will set clear roles, responsibilities and expectations across the
organization based on these goals, as well as setting expectations for news and content
output as a whole.
o Numerical content targets should be set, not as a restrictive or punitive device,
but as a way to ensure the organization remains on track to meeting its goals.
Strategy 07: With a renewed focus on long-form content, WMUK will endeavor using
similar pieces available through the Michigan Public Radio Network.
o If the network provides 1-2 more long-form pieces per week, the station will be
able to create a marketable daily slot for stories on local and statewide topics.
WMUK Master Strategic Plan | FY2020-2022
Page 17 of 20o Beyond this, WMUK’s news and content leaders should explore possibilities for
deeper collaboration with nearby stations, such as WGVU in Grand Rapids. This
collaboration could take the form of joint reporting, shared reporters, or even
shared hosts.
Strategy 08: As budgetary conditions allow, WMUK will prioritize professional
development for content staff, either through training opportunities, or attendance at
public media conferences.
o Our goal is to ensure WMUK’s news and content staff are current with many of
the industry’s long-established best practices or ever-changing trends and
dialogues. This will improve staff skills and improve the likelihood of recruiting
talented candidates for new positions.
Strategy 09: WMUK will be prepared to provide timely information about important
breaking news and crises, both natural and manmade.
o WMUK’s news and content leaders should work with other station departments
and with regional and state partners to craft a plan for such coverage.
Strategic 10: The Content Team will incorporate additional structural changes to
improve editorial workflow:
o Adoption of a robust editorial process, that provides for a more timely meeting
and assignment process.
o Becoming intentional about coverage choices through a pitch process that
incorporates the Five Tiers of News Coverage provided by Judith Smelser.
o Using story tracking tools.
o Reconfiguring WMUK’s physical space, so that content staff are in close enough
proximity to be able to talk with each other and work as a team.
Goal 05: New Branding & Marketing
Our goal is to focus on marketing which will result in audience growth, with corresponding
revenue growth. We will develop a plan to increase awareness for both newly formatted
stations in our core listening area.
Since 1961, we have been using the brand “WMUK” to market ourselves. With two main
stations we intend to continue our parent brand of WMUK, with the designation of our HD-2
and WKDS 89.9 FM services as “Classical WMUK.” This will be subject to evaluation and
possible testing by a marketing consultant.
WMUK Master Strategic Plan | FY2020-2022
Page 18 of 20Accordingly, we will work with graphic design, marketing consultation, and an advertising
agency to develop branding for the two stations as a whole. This will include strategic input on
what media and messages will help us make potential public radio listeners aware of our new
services, while maintaining our current audience. We will also seek recommendations on
optimal placement.
News of the purchase and format changes should generate some significant initial coverage in
print publications. Possible follow-up could include a mix of targeted direct mail, social media,
outdoor, and print to supplement on-air messaging. A Communications Plan has been
developed, and will be refined in coordination with the aforementioned partners. This plan
provides talking points for staff, draft press release, success measures, and an FAQ that will be
used for WMUK’s website, when the changes are made public, per our timeline.
As part of WMUK’s planned acquisition of WKDS 89.9 FM, we have earmarked into our
approved capital grant budget an allocation of $50,000 towards marketing over the next two
years. This marketing campaign will be designed to raise awareness of our new station formats
and programming. As noted previously, funding has been approved by the Irving S. Gilmore
Foundation (ISGF), pending approval by the respective WMU and KPS boards. WMUK will
coordinate with the ISGF to find the most appropriate way to acknowledge that WKDS 89.9 FM
is a gift from the Irving S. Gilmore Foundation to the arts community of Kalamazoo.
Goal 06: Internal Reorganization
WMUK will continue its efforts towards consolidating its content teams, integrating our news
and arts on-air staff under a newly-created Director of Content Operations & Audience
Development. Much of this work is underway, resulting in increased efficiency of content
operations despite reduced staffing levels. This unified content team will allow WMUK to
provide greater support for news operations, while also ensuring quality arts interviews and in-
studio recordings can be shared with a wider audience, through short 5-10 minute segments
that can air during Morning Edition and All Things Considered.
Additional staff positions will be retitled based on new Job Content Tool updates and Staff
Compensation System Evaluation.
Goal 07: WKDS Transmitter Site Upgrades
It is our intent that the equipment used to operate the newly-acquired WKDS 89.9 FM would be
transferred to WMUK as part of the purchase of the license. This would include equipment
such as transmitters, antennas, studio boards, audio processors, etc. The value of the equipment
used at the WKDS transmitter and present studio location is presently unknown, but Public
Media Company projects that we will need $10,000 for new equipment within the first six months
of operation, and a rough estimate of $25,000 in transmitter moving costs in the second year.
WMUK Master Strategic Plan | FY2020-2022
Page 19 of 20Closing
WMUK Station Management sees a clear path forward towards audience and revenue growth
and long-term stability, achieved by implementing this Master Strategic Plan for FY2020
through FY2022. This plan is the result of nearly two years of extensive research, and
represents a strong foundation for continued planning in future years. A timeline for
deployment of these recommendations has already been developed, with many of the
milestones in progress or already achieved.
We are indebted to the support of the WMU Administration, the WMU Foundation, the Irving
S. Gilmore Foundation (who funded much of this research, as well as the capital grant), and
most importantly, the hard work and dedication of all of WMUK’s valued staff.
WMUK Master Strategic Plan | FY2020-2022
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