Privatization Issues

Privatize Public Radio

Budgetary hawks on Capitol Hill question why the federal government is still pumping money into public radio, which is attracting more and more money from businesses and listeners.

  • There are 627 stations nationwide now receiving support fromthe Corporation for Public Broadcasting, the federally-financed nonprofit organization that helps fund programming and operations for public radio and television.

  • The corporation currently gives about $275 million to public radio and television -- with about one-quarter going to radio.

  • Federal financing now accounts for an average of 14 percent of the budgets of public radio stations -- down from 30 percent in 1980.

Although often criticized for the liberal slant of its news reporting, public radio has been a financial success. Many station managers have become shrewd business operators, starting fund-raising ventures, increasing private donations, reaching out for corporate underwriting dollars and considering consolidation and other cost-sharing moves with other public stations.

  • Public radio is growing faster than the more mature public television sector, which is facing a growing barrage of competition.

  • Business support for public radio grew about 69 percent from 1989 to 1994 -- to $76 million.

  • Support from subscribers grew about 68 percent during that period -- to $101 million.

  • In the last ten years, the audience for public radio doubled -- from 9.8 million in 1985 to 19.7 million last year.

Consultants and station managers say public radio attracts a highly educated, affluent audience with a high percentage of males aged 25 to 54 years. These are the kinds of demographics that leave commercial stations green with envy.

It is this kind of a record that leaves many economists and politicians questioning the need for further inflows of taxpayers' dollars to support public radio. While smaller stations could be in a pinch if federal money was cut off, even some in the public radio business acknowledge that public accountability may be overdue.

Source: Robin D. Schatz, "Public Radio Being Pressed to Turn Its Success Into Independence," New York Times, March 25, 1996.

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