ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, July 20, 1996 TAG: 9607220042
SECTION: BUSINESS PAGE: A-4 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
NATIONAL PUBLIC RADIO will pursue new ventures, such as selling CDs of music programs, to make up federal funding losses.
To make up for losses in federal funding, National Public Radio is moving more aggressively into new business ventures.
NPR's board directed the organization Friday to pursue new moneymaking enterprises, which NPR spokeswoman Pat Lute said would expand sales of compact discs based on network programming.
For instance, she said, one soon-to-be-released CD contains four days of performances broadcast on ``Performance Today,'' NPR's classical music show. Member stations will promote the CD on the air, along with a toll-free number for listeners to order. Proceeds will be shared among the stations.
The new business ventures would seek to capitalize on NPR's strong brand name. The network produces and distributes to 543 stations nationwide programs such as the popular ``All Things Considered.''
The board expressed confidence that NPR can ``move forward with new enterprises in the spirit of public service and without affecting NPR's core business,'' to provide Americans with sources of news, information and entertainment free from commercial influences.
Public radio is not alone in the new drive. The tight-budget mood in Congress has the entire public broadcasting industry doing the same thing.
The challenge they face is to maintain their core public-service mission as they participate in the new entrepreneurial ventures.
NPR's sibling Public Broadcasting Service, which distributes ``Sesame Street,'' ``Masterpiece Theater'' and other programs to TV stations, has vigorously pursued new ventures for two years. They include home video distribution, programming partnerships and on-line services.
PBS' media partners include Turner Home Entertainment, Walt Disney Co., MCI Communications Corp. and the Reader's Digest Association.
The Corporation for Public Broadcasting, which doles out federal funds to NPR, PBS and individual public television and radio stations, has taken steps to increase revenues from merchandise related to public TV and radio shows including clothing, toys, games, books.
To fill the federal funding gap, NPR needs to raise several million dollars beyond its current $47 million budget.
NPR's outlay is roughly 25 percent of public broadcasting's total from the government of $275 million. The allocation drops to $260 million next year and to $250 million in 1998.
LENGTH: Medium: 53 linesby CNB