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Association of Cable Communicators Cable Industry Community Contribution Results May 2008 Prepared for: Steven R. Jones Executive Director Association of Cable Communicators P.O. Box Washington, DC By: Annette Arno 195 New Hampshire Avenue Suite 225 Portsmouth New Hampshire United States Phone Fax © 2008 Cision US, Inc.
MAY 2008 CABLE INDUSTRY COMMUNITY CONTRIBUTION REPORT 1 © 2008 Cision US, Inc. METHODOLOGY The Association of Cable Communicators (ACC), formerly the Cable Television Public Affairs Association (CTPAA) is the only national organization specifically addressing the issues, needs, and interests of communications and public affairs professionals in the cable television industry. ACC sought to quantify the cable industry’s philanthropic contribution to communities. This study – reporting on 2006 figures - is the second iteration of a study initially conducted between February and August of 2005, reporting on 2004 figures. The ACC and Cision implemented research to ascertain specifically the level of dollars contributed to community and educational efforts by the cable television industry. This report details the results of this research, conducted between March of 2007 and March of Extensive efforts were made to solicit participation in the study. The questionnaire and a letter explaining the study was distributed via mail on multiple occasions by ACC to their Cable System Operators and Programming Networks contact list during 2006 in order to give potential respondents advance notification of the study and the information required to complete a questionnaire. In the spring of 2007, the survey was then sent directly to CEOs as well as the most senior individual responsible for communications activities within the various Cable System Operator and Programming Network organizations. A subsequent distribution was made to all registrants at ACC’s Annual Conference FORUM 2007 (approximately 400 individuals). In addition to the multiple physical distributions, potential respondents were sent reminders via and also via personal contacts by members of the ACC Board of Directors. The initial deadline for returns was extended in order to gain as many responses as possible. The research design, based on survey data, explores several areas of community contributions by Cable System Operators and Programming Networks. Specifically, areas analyzed in the research included: Ascertaining the total amount of cash and in-kind financial support provided to community organizations in Determining the total amount of employee time volunteered to the community in Identifying the percentage of public affairs programming run in Determining the total value of Public Service Announcement (PSA) time donated in Determining the total value of educational expenditures provided to schools, school systems or educational institutions (including, but not limited to, development, printing and production of teaching materials, toll-free helpline expenses, and web sites for teachers) Identifying the total number of schools provided free cable service to in 2006 and the dollar value of that service. Identifying the total number of schools provided free Internet service to in 2006 and the dollar value for Broadband access. Identifying the total number of libraries and youth or community centers provided free Internet service to in 2006 and the dollar value for Broadband access.
MAY 2008 CABLE INDUSTRY COMMUNITY CONTRIBUTION REPORT 2 © 2008 Cision US, Inc. METHODOLOGY - Continued A custom research instrument, developed jointly by Cision and ACC for the original study was again utilized so as to provide for direct comparisons of results and included two versions; one for Cable System operators and one for Programming Networks. The majority of content was parallel across the two versions; the difference was that Cable System Operators were questioned about cable, Internet and Broadband service contributions. The questionnaires consisted of fill-in questions where specific dollar amounts were requested. All questions were asked in terms of 2006 contributions. Completed questionnaires were returned directly to Cision for data processing and analysis. Nineteen interviews were returned (twelve from Programming Networks and seven from Cable System Operators.) An additional Cable System Operator response was discarded as it was deemed to be duplicative of an earlier response. Results reported in this document consist of the weighted, aggregate response for each question. All numbers are rounded up to the nearest whole dollar amount. Results from the nineteen respondents are weighted to reflect actual industry totals for each group. (Questionnaire responses received represent 24.38% of total industry subscribers for Programming Networks and 72.42% of total industry subscribers for Cable Operating Systems.) Two separate weighting factors were employed, one for Cable System Operators and one for Programming Networks. Each was based on the total number of subscribers represented by the respondent organizations as compared to the total number of subscribers in the industry. The total number of subscribers in the industry, as supplied by the ACC, was determined by reference to the following resources; © 2008 Association of Cable Communicators © 2008 National Cable & Telecommunications Association © 2008 SNL Kagan Unlimited © 2008 The Nielsen Company, Inc. © 2008 Nielsen Media Research, Inc.
MAY 2008 CABLE INDUSTRY COMMUNITY CONTRIBUTION REPORT 3 © 2008 Cision US, Inc. METHODOLOGY - Continued Some of the Programming Networks that were off the air or for which subscriber information was not available were not included in the industry total figures. A listing of these networks can be found in the Appendix of this report. The numbers utilized to determine the two weighting factors are detailed below. Industry Total Subscribers Respondent Total Subscribers Final Weight Cable System Operators 65,600,00047,507, Programming Networks 6,496,000,0001,583,500,
MAY 2008 CABLE INDUSTRY COMMUNITY CONTRIBUTION REPORT 4 © 2008 Cision US, Inc. EXECUTIVE SUMMARY Cable System Operators & Programming Networks Contributed Almost Two Billion Dollars To Their Communities In 2006, Up from $1.36 Billion in 2004 In 2006, Cable System Operators and Programming Networks contributed a total dollar amount of $1,994,794,418 to their communities. Of this total, Cable System Operators contributed $1,754,259,451, representing 88 percent of the total contributed amount. Cable System Operators’ contribution was comprised of cash and in-kind financial support to community organizations, employee time volunteered to the community (valued at $10 per hour), Public Service Announcement time donated, free cable service provided to schools, free Internet/Broadband service provided to schools, free Internet/Broadband service to libraries, youth and community centers, and educational expenditures provided to schools (development, production, distribution and other costs). Programming Networks contributed the remaining 12 percent - $240,534,967 – in the form of cash and in-kind financial support to community organizations, employee time volunteered to the community (valued at $10 per hour), Public Service Announcement time donated, and educational expenditures provided to schools (development, production, distribution and other costs). A break out of these contributions is detailed in the table below. Cable System Operators Programming Networks Total Cash & in-kind financial support (charities, non-profits, educational institutions) $374,633, $832,466, $42,859, $92,770, $417,492, $925,236,190 Value of employee volunteer time to community organizations ($10 per hour) $7,846, $6,960, $834, $1,552, $8,680, $8,512,797 Value of PSA time donated $394,784, $755,996, $415,879, $141,110, $810,664, $897,106,330 Value of free cable service provided to schools $24,751, $36,650,742 NA $24,751, $36,650,742 Value of free Internet/Broadband service provided to schools $4,687, $12,338,806 NA $4,687, $12,338,806 Value of free Internet/Broadband service provided to libraries & youth/community centers $1,401, $4,637,050 NA $1,401, $4,637,050 Value of educational expenditures provided to schools/educational institutions $67,417, $105,209, $26,601, $5,102, $94,019, $110,312,503 Total $875,523, $1,754,259, $486,175, $240,534, $1,361,698, $1,994,794,418
MAY 2008 CABLE INDUSTRY COMMUNITY CONTRIBUTION REPORT 5 © 2008 Cision US, Inc. EXECUTIVE SUMMARY - Continued Cable System Operators & Programming Networks Contributed Over One Hundred Fifty Million Dollars To Educational Efforts In 2006 Examining the results in terms of contributions made specifically for education, Cable System Operators contributed $154,199,398 towards educational efforts. Combined with the $5,102,652 from Programming Networks, the dollar amount contributed towards education by the cable industry totals $159,302,050. Cable System Operators numbers are augmented by the fact that they offer cable and Internet/Broadband services that Programming Networks do not. Cable System Operators also contributed more than twenty-fold the amount for educational expenditures that Programming Networks did, but this still resulted in a relatively modest up-tick overall of $16 million compared to the last study. This figure includes, but is not limited to, development, printing and production of teaching materials, toll-free helpline expenses, Web sites for teachers and other costs. Cable System Operators Programming Networks Total Value of free cable service provided to schools* $24,751, $36,650,742 NA $24,751, $36,650,742 Value of free Internet/Broadband service provided to schools* $4,687, $12,338,806 NA $4,687, $12,338,806 Value of educational expenditures provided to schools/educational institutions $67,417, $105,209, $26,601, $5,102, $94,019, $110,312,503 Total $96,857, $154,199, $26,601, $5,102, $123,458, $159,302,050 Note the differences between the 2004 and 2006 Total numbers for Cable System Operators compared to Programming Networks where Cable System Operators doubled their total dollars contributed while Programming Networks reported literally half the contributed amount from 2004 to While cash and in-kind financial support rose by double the amount for both groups, and the value of employee volunteer time essentially remained the same overall, larger differences between the two groups start to be seen for PSA time donated. However, the greatest increases in dollar amounts contributed are in the areas where only Cable System Operators can contribute; free cable service to schools (grew by 1.5 times the dollar amount from 2004 to 2006), free Internet/Broadband service to schools (grew by more than 2.5 times), and free Internet/Broadband services to libraries and youth/community centers (grew by more than three times the dollar amount. *2004 Based on total responses
MAY 2008 CABLE INDUSTRY COMMUNITY CONTRIBUTION REPORT 6 © 2008 Cision US, Inc. EXECUTIVE SUMMARY - Continued Cable System Operators were also asked to identify the number of schools to which they provided cable and Internet/Broadband services. The table below details the average contribution per school, based only on those who provided responses for both the dollar value and the number of schools it applied to. (In 2006, all respondents provided answers for both parts of each question.) Note that while the average contribution per school for cable service has gone down by $110, the average cost of Internet/Broadband services per school has gone up by $148. Note also that the number of schools receiving free Internet/Broadband services has effectively doubled from 2004 to Cable System Operators Number of Schools Average Contribution Per School Value of free cable service provided to schools** $24,750, $36,650, , – 74, $ $493 Value of free Internet/Broadband service provided to schools** $4,683, $12,338, , – 18, $ $657 **2004 Based only on those who provided complete responses to both sections of the question.
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