United Nations Educational, Scientific and Cultural Organization Executive Board
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1 ex United Nations Educational, Scientific and Cultural Organization Executive Board Hundred and sixty-second Session 162 EX/44 PARIS, 19 September 2001 Original: English Item 9.1 of the provisional agenda REPORT OF THE DIRECTOR-GENERAL ON THE UNESCO COURIER SUMMARY The Director-General hereby submits the results of the study on the viability of the Courier carried out during the summer as requested by the Executive Board at its 161st session (161 EX/Decision 9.2, para. 12), together with his comments. Decision required: paragraph 12.
2 162 EX/44 Introduction 1. In pursuance of decision 9.2, paragraph 12, adopted by the Executive Board at its 161st session, the Director-General immediately took steps to have a study carried out by independent, outside consultants. The study s authors were asked to review whether it is possible to make the UNESCO Courier more viable and cost-effective within the proposed budget and to continue efforts to identify potential sources of sponsorship for the Courier, and ways to widen its readership especially among youth in different languages, taking into account the views expressed during the debates of [the] 161st session [of the Executive Board]. The results of the study were handed over to him in early September. 2. The present document contains a summary of the findings of the study, together with the Director-General s comments and conclusions. Annexed hereto is the Executive Summary of the study. Copies of the full report, in English and French, are available on request. Summary of the findings of the study 3. Conducted by outside experts, the study: confirms the dramatic decrease over recent years in the number of copies sold: from 169,700 in 1985 to 40,960 in 2000 for the three language versions English, French and Spanish produced at Headquarters; identifies three principal reasons for this downward trend: (1) editorial choices which pay insufficient heed to the wishes of readers; (2) inadequate distribution particularly of the English and Spanish editions; and (3) the near absence of promotional activities anywhere beyond France; points to the very modest audience of the 29 other language versions (including four in Braille) which have a combined print-run of 96,000 copies, of which 69,000 are sold; dismisses thoughts of earning significant revenue through paid advertising considering that the age groups and socio-economic categories commonly targeted by advertisers can be reached far more efficiently through alternative media outlets; suggests that cost-cutting measures applied both to production and distribution methods would only yield marginal savings. 4. The Courier could expand its readership and improve its cost-effectiveness, the study also says, provided some changes are made in its content and presentation and additional resources are invested. The recommendations of the study in this regard can be grouped together in the following five points: Changes in the editorial content and lay-out: presentation of opposing points of view on different subjects, more systematic references to UNESCO programmes and pronouncements whenever relevant to the subject; introducing rubrics covering each of the sectors; including a Letter to the Editor section and linking it with a chat room on the Courier website; adopting a revamped lay-out making greater use of graphics, art work and photographs; Investing US $1 million in 2002 and US $0.5 million in 2003 to finance vigorous promotional campaigns aimed at schools, universities, libraries and the public at large;
3 162 EX/44 page 2 Adopting a franchise system for all language versions wherever they may be produced. This would imply withdrawing responsibility for actual production and distribution from National Commissions, where relevant, and negotiating agreements, on a commercial basis, with professional publishers. By virtue of such a system, full financial liability for production and distribution would be assumed by the corresponding franchisee. Assuming these operations became profitable, revenues would be generated for UNESCO in the form of royalties; Developing the Courier website and using it to promote subscriptions; Identifying potential sponsors in the private sector who would wish to advertise through this medium their support for UNESCO as a whole or for one or more of its programmes. Such sponsorship might cover all issues over a given period of time, issues in one or more languages, a specific rubric, etc. 5. Properly executed, the various elements of this strategy could change the picture as regards the Courier s future prospects. But before any progress can be envisaged significant financial commitments must be entered into over and above sums budgeted for the Courier in previous biennia. 6. The initial investment required amounts to US $8 million (a net investment of some US $6.5 million if projected income from sales is taken into account) for the biennium. Comments by the Director-General 7. The Director-General believes that the study produced is of a high standard. It largely confirms the Secretariat s analysis as presented to the Executive Board at its 161st session. But it also makes a strong case for a final attempt to save the Courier and to provide it with a sounder financial basis than has been the case for many years now. 8. The Director-General nevertheless feels that some of the key projections made in the study are over-optimistic. How long it might take before additional revenue from increased sales and sponsorships can be secured remains a matter of speculation. Under the best scenario presented, a total of 10 franchising agreements in key market areas would be signed during the next biennium and generate income amounting to US $450,000 annually as from 2004 while an additional US $1 million would be obtained from sponsors. In this regard, it is worth while noting the case of the Russian language edition, which the study highlights as a successful example of a franchising agreement, although the corresponding contract in fact makes no provision for the payment of royalties to the Organization. 9. The search for sponsors and franchise partners may however prove more difficult than foreseen. None, at any rate, can be approached until a new editorial formula has been developed. Monthly magazines, it should be noted, are currently experiencing great difficulties in many parts of the world as a result, among other factors, of the development of new information technologies and of information networks in general. A good deal of time is likely to pass before new income actually begins to flow and, if such income falls short of expectations, additional funding will inevitably be required in ensuing biennia. Conclusions 10. To survive, the Courier requires an immediate investment of US $8 million for the biennium biennium. The Director-General maintains his opinion that no such sum can be identified within the context of his programme and budget proposals for ,
4 162 EX/44 page 3 particularly in light of the stringencies imposed by the zero nominal growth budget ceiling endorsed by the Executive Board. Furthermore, he can envisage no further cuts in staff and is most reluctant to propose any reduction in programme activities. Lastly, this amount could not be drawn from planned resources available to the newly established Bureau of Public Information (BPI). Indeed, its projected US $20 million budget in document 31 C/5 represents the minimum required to finance the considerable efforts involved in implementing all the elements of the new communication and information strategy, which the Executive Board strongly endorsed at its last session. 11. It is consequently the Director-General s belief that, were the Executive Board to express the wish to see a continuation of the publication of the Courier, two possibilities would be open to Member States. The first would involve raising the budget ceiling for by US $6.5 million (i.e. the net initial investment envisaged by the study, assuming a return of US $1.5 million over the biennium from the full start-up funds required, amounting to US $8 million). The other would be to set up a special account and invite voluntary contributions to it from Member States. This latter option would only be practicable if official pledges covering the full amount required were received by mid-december 2001, at the latest. Draft decision 12. The Executive Board may wish to consider adopting a decision the outline of which is proposed below: TheExecutiveBoard, 1. Having considered document 162 EX/44 and the findings of the study conducted by the Director-General, 2. Recommends to the General Conference that it: [The Board may wish to adopt one of the three following paragraphs] Option 1 [Endorse the conclusions of the Director-General that no reasonable alternative exists within the proposed budget for to ceasing publication of the Courier at the end of 2001 and invites the Director-General to concentrate his efforts on the implementation of all aspects of UNESCO s new communication and information strategy.] Option 2 [Endorse the recommendations contained in the study and approve an increase in the budget ceiling for the biennium in the amount of US $6.5 million in order to enable the Director-General to implement them.] Option 3 [Endorse the recommendations contained in the study and invite the Director- General to continue the publication of the Courier provided that an amount of US $6.5 million of voluntary contributions is received or officially pledged by 15 December 2001 at the latest, failing which the publication of the Courier will cease at the end of 2001.]
5 162 EX/44 Annex ANNEX EXECUTIVE SUMMARY The economic situation of the UNESCO Courier (with the equivalent of an operating loss of $2,225,000 in 2000) is untenable from a traditional publisher s viewpoint. It is therefore quite justifiable that, at a time of budgetary restrictions, the Director-General of UNESCO should raise the question of discontinuing this publication. Scrutiny of the accounts shows: plummeting sales of the French edition of the review; a lack of advertising revenue; reasonable expenditure but an altogether inadequate sales promotion budget. The disadvantage of discontinuing the publication would be that it would mean the end of a review that embodies the universalism and the multiculturalism of UNESCO and has a monthly world readership of 1,500,000 people, not counting the readers connecting onto the Internet site. There are some grounds for hope: the slowdown in the loss of sales of the French edition since the launching of the new format in 1998, resulting in a rise in the overall circulation of the Courier (headquarters and non-headquarters editions) in 2000, for the first time in many years; the possibility of concluding partnership agreements in many countries with professional publishers, to whom the Courier could entrust the printing, distribution and promotion of the various editions, none of which can be done by the National Commissions for UNESCO, with some exceptions. a growth in the number of sales copies of up to 250,000 by 2004, thanks to an enhanced editorial approach, regular publication in all countries, effective promotion and wellorganized distribution; the financial resources that could be contributed to the Courier by sponsors, properly canvassed in coordination with the UNESCO Directorate. This project could generate profits (dues paid by publishers, sponsorship) and savings and hence reduce the annual total net cost of the Courier for UNESCO to approximately $700,000 as from 2004, i.e. $1,400,000 per biennium. To achieve this result, a vigorous programme of action will have to be launched and provision made for an initial investment of $8 million (i.e. a net investment estimated at $6.5 million after turnover) for the biennium. This amount could be reduced if the initial negotiations with publishers and sponsors progress favourably and if their effects are felt as from Ressources et Stratégies
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