AnnUAL REPORT 2011-2012 - Knowledge Network

BRITISH COLUMBIA’S PUBLIC BROADCASTER 

Knowledge Network Corporation 

ANNUAL REPORT 2011 – 2012

Table of Contents 

Message from the Board Chair to Minister Responsible........................................................................................... 1 

Organizational Overview. ............................................................................................................................................ 3 

Governance.................................................................................................................................................................... 5 

Report on Performance Goals...................................................................................................................................... 8 

Progress Against Government Letter of Expectation.............................................................................................15 

Financial Report...........................................................................................................................................................18 

Financial Summary. ................................................................................................................................................... 20 

Appendix A – 2011/12 Audited Financial Statements. ........................................................................................... 22 

Contact Information.....................................................................................................................................................41 

On the Cover 

Indian railway linesman, by Gerry Troyna. 

Indian Hill Railways broadcast on Knowledge Network in March 2012. 

Knowledge Network Corporation ANNUAL REPORT 2011-2012

Accountability 

Statement 

The 2011/12 Knowledge 

Network Corporation 

Annual Report was prepared 

under the Board’s direction 

in accordance with the 

Budget Transparency and 

Accountability Act and the 

B.C. Reporting Principles. 

The Board is accountable for 

the contents of the report, 

including what has been 

included in the report and 

how it has been reported. 

The information presented 

reflects the actual 

performance of Knowledge 

Network Corporation for the 

twelve months ended March 

31, 2012 in relation to the 

Service Plan published in 

February 2011. 

The Board is responsible for 

ensuring internal controls 

are in place to ensure 

information is measured and 

reported accurately and in a 

timely fashion. 

All significant assumptions, 

policy decisions, events 

and identified risks, as of 

March 31 2011, have been 

considered in preparing the 

report. The report contains 

estimates and interpretive 

information that represent 

the best judgment of 

management. Any changes 

in mandate direction, goals, 

strategies, measures or 

targets made since the 

2011/12-2013/14 Service 

plan was released and any 

significant limitations in 

the reliability of data are 

identified in the report. 

The Honourable Margaret MacDiarmid, 

Minister of Labour, Citizens’ Services 

and Open Government 

The Corporation made significant progress this 

past year, improving public broadcasting for British 

Columbians and supporting plans for sustainable 

growth. We have grown our trusted, commercialfree 

analogue service to a media network with 

multiple channels and web offerings to further 

serve audiences across the province. 

We are very pleased that our entrepreneurial partnership 

with BBC Worldwide has produced a new revenue stream 

to fund a Knowledge Network High Definition (HD) 

Nini Baird, Chair 

channel set to launch in fall 2013. The Board recognizes that a 

timely transition to HD is vital to remaining competitive and relevant with viewers 

in British Columbia. 

Contributions from our loyal Knowledge Partners continued to increase and once 

again exceeded expectations. Knowledge Partners donations now fund 100% of 

arts and drama programming, 85% of documentary programming and 60% of the 

children’s programming in our broadcast schedule. 

We appreciate their ongoing support of public broadcasting in B.C. and have 

been heartened by their enthusiastic attendance at Knowledge Partner events in 

Victoria and other B.C. communities. 

In just five years, the Knowledge Endowment has exceeded the $1 million 

milestone thanks to generous donations and estate gifts. The Endowment was 

established in 2007 with a long-term view to support original programming, 

including the creation of new B.C. stories. 

To engage audiences anytime, anywhere, Knowledge Network increased content 

on multiple digital platforms. Knowledge.ca experienced substantial growth in web 

traffic for viewing of full-length programs online. KnowledgeKids.ca also witnessed 

significant growth in web traffic for viewing of full-length programs as well as new 

interactive games for kids. Our commitment to offering B.C.’s children and families 

a safe and trusted environment to learn together extends to all our children’s 

digital platforms. 

Once again, our investment in original content gave B.C. filmmakers the opportunity to 

share their stories with the province. Documentary highlights included Family Matters, 

One Big Hapa Family and Family Portrait in Black and White. In partnership with the 

Labour Heritage Centre, we commissioned a series of historical documentaries telling 

the stories of ordinary people who played extraordinary roles in the evolution of our 

province, to be broadcast in 2013. As a result of our investment in B.C. productions, 

federal funding from the Canada Media Fund increased to $1.4 million this year. 

Knowledge Network Corporation ANNUAL REPORT 2011-2012 

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Our provincial outreach remains a core activity because we believe that sharing the story of Knowledge with 

communities across B.C. enables us to strengthen our relationship with viewers and supporters. This year 

we hosted community events in Chilliwack, Ganges (Salt Spring Island), Kamloops, Kelowna, Vancouver, and 

Victoria. Community visits included hosting Storyville Workshops to engage aspiring and established filmmakers 

from different regions. 

This is our second year reporting on “Sustainable, Improving Service”, our Strategic Plan that will continue to 

guide us through 2012/13. The Corporation finished the 2011/12 year with $6.4 million in total government 

revenue and $3.4 million in non-government revenues, which resulted in a small net income of 5% of revenues. 

Knowledge Network Corporation continues to enjoy an exciting period of growth and evolution that is moving us 

toward our long-term goals. With a strong foundation in place, we have been able to take full advantage of many 

new opportunities presented to us. The Corporation and this Board of Directors are very proud of all that was 

achieved in 2011/12, and we look forward to working with the Province and all British Columbians in the year ahead. 

Sincerely, 

Nini Baird, C.M. 

Chair, Knowledge Network Corporation Board of Directors 


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Organizational Overview 

Knowledge is British Columbia’s public educational broadcaster. Our mission is to provide 

all British Columbians with a trusted alternative for the commercial-free exploration of life, 

connecting them to the world through television, internet, and mobile platforms. 

Vision 

Knowledge Network, as British Columbia’s public educational broadcaster, supports lifelong learning by providing 

quality programming to all British Columbians through television, the web and other emerging technologies. 

Enabling Legislation 

Knowledge Network is a Crown corporation, created in 2008 under the Knowledge Network Corporation Act. 

Our Mandate 

The Knowledge Network Corporation Act lists the purposes of Knowledge Network as: 

• to carry on the business of broadcasting and communications to provide unique, quality educational 

programming to British Columbians, 

• to promote lifelong learning in British Columbia by providing quality educational programming, 

• to inform and educate British Columbians about their province and about issues that are relevant to them, 

• to provide British Columbians with a unique television experience, and 

• to collaborate with the independent television and web media production sectors in British Columbia. 

How Knowledge Network Serves British Columbians 

Knowledge Network is British Columbia’s viewer-supported public broadcaster – a place where independent 

thinking can always be found. It is our responsibility to bring diverse perspectives to our viewers in B.C., to 

challenge assumptions, broaden awareness and spur the acquisition of new knowledge. We do this by: 

• distributing commercial-free educational content to all British Columbians through television, internet, and 

mobile platforms, 

• researching, filtering, licensing, and packaging content from British Columbia, Canada, and around the world 

that supports lifelong learning, 

• commissioning, prelicensing, and developing original content for television, internet, and mobile platforms, and 

• building and managing the charitable arm of Knowledge Network, including donations, legacy gifts, and bequests. 

Core Business Areas 

Our core business areas are defined through our management structure (page 5). 

Principal Partners, Clients, and Stakeholders 

Key stakeholders include : 

Our Viewers – 1.4 million weekly viewers across British Columbia 

Our Shareholder – the Government of British Columbia 

Our Donors – 35,000 Knowledge Partners 

Our Storytellers – the independent production community 

Our Partner in BBC Kids – BBC Worldwide 

Our Regulator – Canadian Radio-television and Telecommunications Commission (CRTC). 


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Values 

Knowledge Network is guided by these values: 

Trust We serve the public interest and deliver on our brand promise. 

Integrity We work to the best of our abilities, engaging in principled decision-making and ensuring 

independence in programming. 

Respect We demonstrate due regard for everyone and strive to reflect diverse points of view. 

Accountability We are open, responsible, and transparent in the conduct of our business. 

Quality We strive for excellence in the selection, presentation, and distribution of our programming and in our 

interactions with all those we serve. 

Benefit to British Columbians 

Knowledge Network is where stories live that speak to our time. We give British Columbians a sense of place, 

connecting them to the rich history, arts and culture of our province. We help them see the world in new 

ways and from different perspectives through our global network of storytellers: artists, dramatists, explorers, 

historians, naturalists, and performers. 

Our cultural, economic, and social benefits to British Columbians include: 

Literacy and Early Childhood Development 

Knowledge Network provides B.C.’s children with a safe and trusted learning environment. 

Economic Development 

Knowledge Network’s commissioning and licensing of original content helps B.C.’s independent production sector 

attract additional financing from provincial, national, and international sources. 

Creative Economy 

Independent production companies supported by Knowledge Network employ writers, directors, editors, 

performers, technicians, and support personnel. Further, through development funding and formal internships 

with colleges and universities, we reach out to new and emerging talent, providing unique opportunities for 

professional development in the television and new media workplace. 

B.C. Content 

Knowledge Network offers programs of direct relevance to British Columbians, cultivating dialogue and 

encouraging participation in our culturally diverse, vibrant, and dynamic province. 

Viewer Supported, Viewer Focused 

British Columbians contribute to the success of Knowledge Network. As a viewer-supported public broadcaster, 

we deliver significant, high-quality content that is informed by the interests of our audience. 

Accessible and Commercial-free 

Knowledge Network has mandatory carriage on cable and direct-to-home satellite. Our programming has no 

interruptions and no commercial advertising. 

How We Deliver Services 

Knowledge Network delivers educational content to British Columbians via television through mandatory carriage 

on cable and direct-to-home satellite services, and at Knowledge.ca, KnowledgeKids.ca and mobile platforms. 

We develop, prelicense, and commission filmmaker-driven creative documentaries for broadcast on Knowledge 

Network. We serve as a resource for independent producers across traditional and interactive media sectors for 

the creation of multi-platform content. 


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Governance 

The corporate status of Knowledge Network is governed by the Knowledge Network Corporation 

Act of British Columbia. 

Minister of Labour, Citizens’ Services and Open Government 

Honourable Margaret MacDiarmid 

Board of Directors 

Nini Baird, C.M., Chair 

President and Chief Executive Officer 

Rudy Buttignol 

Senior Management 

Jeffrey Lee Director of Finance 

Tracey Balogh Director of Human Resources 

Murray Battle Director of Independent Production and Presentation 

Sarah MacDonald Director of Business and Partnerships 

Glenna Pollon Director of Government Relations and Communications 

Oliver Eichel Director of Broadcast Operations 

Ravi Singh Associate Director of Interactive 

Lisa Purdy Director of Knowledge Kids and BBC Kids 

Knowledge Network holds two other designations that inform our organizational and business decisions: 

1. Knowledge Network is licensed through the Canadian Radio-television and Telecommunications Commission 

(CRTC) to broadcast educational programming in British Columbia. 

2. Knowledge Network is a registered charity, engaging in fundraising activities through our Knowledge Partners 

program. Funds raised support the acquisition and production of educational and engaging content from 

British Columbia and around the world. 

Board of Directors 

The Board of Directors of Knowledge Network are appointed by the Lieutenant-Governor in Council. The Ministry of 

Labour, Citizens’ Services and Open Government is responsible for policy direction while the Board is responsible for 

operational policy and setting the strategic direction of the organization. The Board also monitors performance based 

on the Province’s planning and reporting principles. The Board delegates responsibility for the day-to-day leadership 

and management to the President and Chief Executive Officer. Knowledge Network governance practices are in 

compliance with Board Resourcing and Development Office Governance Guidelines. Knowledge Network’s governance 

and policy information is available at Knowledge.ca/about/governance. 


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Governance Principles 

Ensure broad-based, relevant Board representation. 

Promote strategic macro-governance direction. 

Maximize value for money. 

Listen to KNC partners. 

Leverage best practices including the selection of 

performance measures and targets. 

How They Are Achieved 

Recommend individuals from business, education, finance, 

law, new media, and other relevant disciplines. 

Work with management to ensure continuous improvement 

of service delivery. 

Operate by demonstrating effectiveness and efficiency in 

use of resources. 

Seek and act on input from partners, stakeholders, and the 

provincial government. 

Support the CEO in the development, implementation, and 

evaluation of a Service Plan that meets goals and objectives 

set by the Board. 

Knowledge Network Corporation Board of Directors (at March 31, 2012) 

Board Members 

Nini Baird 

(Vancouver) 

Kevin Brown 

(Prince George) 

Beth Haddon 

(Toronto/Vancouver) 

Wendy Heskha 

(Kamloops) 

Debbie MacMillan 

(Kelowna) 

Sinclair Mar 

(Victoria) 

Sheila Orr 

(Victoria) 

Patti Sollars 

(Sidney) 

Mitch Taylor 

(Vancouver) 

Marg Vandenberg 

(Vancouver) 

All members 

Board Committees 

Chair, KNC Board of Directors 

Chair, Strategic Planning Committee 

Member, Fund Development and Marketing Committee 

Secretary, KNC Board of Directors 

Member, Strategic Planning Committee 

Member, Audit and Finance Committee 




Member, Audit and Finance Committee 

Member, Governance Committee 


Chair, Governance Committee 

Vice-Chair, KNC Board of Directors 

Chair, Audit and Finance Committee 


Chair, Fund Development and Marketing Committee 

Human Resources Committee 


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Board Committees 

There are five standing Committees that support the role of the Board in fulfilling its obligations and 

responsibilities to further the goals of Knowledge Network. 

Audit and Finance Committee 

The purpose of the Committee is to ensure that the audit process, financial reporting, budgets, and risk 

management systems are reliable, efficient, and effective. 

Fund Development and Marketing Committee 

The purpose of the Committee is to identify new sources of revenue and serve as ambassadors and strategists for 

fund development activities. 

Governance Committee 

The purpose of the Committee is to ensure that Knowledge develops and implements governance objectives and 

policies. 

Strategic Planning Committee 

The purpose of the Committee is to ensure Knowledge Network’s strategic direction meets the public policy 

objectives identified in the Knowledge Network Corporation Act. 

Human Resources Committee 

The purpose of the Committee is to ensure Knowledge Network’s compensation and human resource 

philosophies and strategies are in keeping with our mission, values, and key goals, as well as our legislative and 

government policy guidelines and requirements. 


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Report on Performance Goals 

Four goals from our strategic plan Sustainable, Improving Service direct us in our planning 

to build long-term stability for Knowledge Network while improving our service for British 

Columbians. The following report identifies strategies and measures performance against our 

goals and targets from our 2011/12 to 2013/14 Service Plan. 

Goal #1: Diversify and grow revenue through entrepreneurial and 

philanthropic partnerships. 

Strategies 

Entrepreneurial 

1. Launch new, Canadian subscription children’s channel. 

2. Secure one major media partnership sponsor annually by developing and marketing a comprehensive 

sponsorship package that includes an enhanced set of integrated benefits, and by capitalizing on our new 

website and the increased traffic that will result. 

3. Acquire customer relationship management capability, enabling online account management for our Partners, 

and providing a new channel to increase our marketing and fundraising. 

Philanthropic 

1. Implement online fundraising program by leveraging new functionality provided by the constituent relationship 

management database (CRM). 

2. Implement major giving program focusing on corporate philanthropy. 

3. Improve donor acquisition and stewardship by leveraging marketing activities to connect with donors and 

prospective donors. 

Goal #2: Deliver our broadcast service on multiple digital platforms to 

engage our audience anytime, anywhere. 

Strategies 

1. Expand streaming video on the internet with content licensed from external sources. 

2. Launch a High Definition (HD) Channel. 

3. Continue to deliver Knowledge Network to an expanding number of mobile platform opportunities. 


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Goal #3: Create original content for multi-platform delivery through 

partnerships with independent producers. 

Strategies 

1. Continue the enhanced level of financial commitment to multi-platform independent content development 

and production at Knowledge Network over three years. 

2. Expand sources of financing available to producers, thereby leveraging Knowledge Network’s investment, by 

strengthening relationships with Canadian public and private-sector funding bodies and international and 

domestic broadcasters. 

3. Establish Knowledge Network as a player in digital content production, to facilitate creative and business 

partnerships between traditional producers and new media producers. 

Goal #4: Increase awareness by marketing the Knowledge Network brand. 

Knowledge Network will strengthen its position as British Columbia’s valued public educational broadcasting 

service by building new relationships with communities and opinion leaders all across the province. 

Strategies 

1. Continue implementation of an integrated marketing plan that completes the Knowledge: Pass It On branding, 

and aligns it with the unique marketing needs of each business area. 

2. Communicate with B.C.’s various communities and opinion leaders through public speaking opportunities and 

participation in panels, forums, town halls, and other local events. 

Benchmarks 

The public policy objectives for Knowledge Network are very specific to the needs and circumstances of the 

province of British Columbia. Each of the four public educational broadcasters in Canada have business models 

based on their respective relationships with their provincial governments and the conditions of their federal 

broadcast licenses. Consequently, Knowledge Network’s performance is benchmarked internally against past 

performance. We continue to research a broad range of external benchmarks within the broadcast and not-for 

profit sector, both nationally and internationally. 

Knowledge Network has 16 performance measures supporting four strategic goals. Using industry standard 

broadcast measurement tools (including audience ratings and broadcast inventory, scheduling and reporting 

software), we have established internal benchmarks for all of our performance measures. 


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Goal #1: Diversify and grow revenue through entrepreneurial and 

philanthropic partnerships. 

An unfavourable economic climate coupled with negative trends in charitable giving compel us to find innovative 

and creative ways to help finance our operation and ensure a sustainable future. We can fuel our growth by 

leveraging internal technological resources in new ways, by fostering the spirit of entrepreneurship in the 

organization and by redefining how we engage with our donors. 

Measures 

Knowledge Partner Donations 

We measure this activity by tracking Knowledge Partner donations recognized though our financial software 

system and donor database. 

Endowment Investment Revenue 

Due to current global economic conditions, our measurement for investment revenue is based on an average 

return of 2%. 

Media Partnerships Revenue 

We measure this activity annually by the revenue generated through schedule underwriting and sponsorship 

initiatives. 

Revenue Generated by Entrepreneurial Initiatives 

Overall revenue generated from entrepreneurial initiatives is tracked annually through our financial software 

system. 

Performance Measures 

2009/2010 

Actuals 

2010/2011 

Actuals 

2011/2012 

Forecast 


Actuals 

2012/2013 

Target 

2013/2014 

Target 

2014/2015 

Target 

Knowledge Partner Donations $2.35 M $2.7 M $2.75 M $2.97 M $2.9 M $2.95 M $3.0 M 

Endowment Investment Revenue $7,000 $8,360 $10,000 $10,463 $12,000 $14,000 $16,000 

Media Partnerships Revenue $79,563 $17,230 $19,000 $24,030 $25,000 $30,000 $35,000 

Revenue Generated 

by Entrepreneurial Initiatives 

N/A 1 $110,175 2 $150,000 $150,000 $350,000 $500,000 $600,000 

Performance Summary 

Knowledge Partners contributed a record $3,086,785, which is 14% above what was donated last year. We 

attribute this growth to the introduction of email as a new solicitation method, the implementation of new tactics 

for recovering lapsed donors, and a new contest we held during the winter 2012 campaign. Our content offerings 

continued to engage audiences on multiple platforms. 

Our Endowment Investment Revenue has recovered slightly from the economic uncertainty of the past few years. In 

2011/12, the Knowledge Endowment exceeded the $1 million milestone thanks to generous donations and estate gifts. 

We exceeded the forecast for Media Partnerships Revenue by broadcasting messages in the public interest, 

including the B.C. Centre for Disease Control’s Do Bugs Need Drugs campaign and Encorp’s Drink Box campaign. 

In 2011/12, income was generated from the operation of our Canadian subscription children’s channel. 

1. Partnerships to leverage our digitial broadcast platform were still in development in 2009/2010. 

2. Revenue from the sale of surplus equipment. 


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Goal #2: Deliver our broadcast service on multiple digital platforms to 

engage our audience anytime, anywhere. 

Importance of Measures 

In the midst of significant technological change within our industry and among consumers, Knowledge Network 

will leverage its digital broadcast platforms to ensure our content is available to our audiences when they want it 

and where they want it. 

Average Weekly Reach in B.C. (TV Audience) 

We measure average weekly reach across our entire broadcast schedule for four broadcast seasons using data 

from BBM Canada, the national provider of TV, radio and consumer information. Average weekly reach is the 

unduplicated number of people aged two years or older viewing at least one minute of programming in British 

Columbia. BBM Canada estimates are based on 95% confidence interval. 

Total Time on Site 

We track this measure using a customized report that measure the total aggregate time spent on Knowledge.ca 

and KnowledgeKids.ca by all visitors in B.C in hours. 

Web Visits in B.C. 

We measure Knowledge Network web usage in British Columbia annually. We track visits or sessions to our 

website, defined as a period of interaction between a visitor’s browser and a particular website, ending when the 

browser is closed or shut down. 

Page Views in B.C. 

A page view is defined as a view of a page on a site that is being tracked by a tracking code. If a visitor hits reload 

after reaching the page, this will be counted as an additional page view. If a user navigates to a different page and 

then returns to the original page, a second page view will be recorded as well. 


AUDIENCE 

2009/2010 

Actual 


Actual 


Forecast 


Actual 


Target 

2013/2014 

Target 

2014/2015 

Target 

Spring (Apr-June) N/A 1,361,000 1,375,000 1,482,000 1,430,000 1,435,000 1,440,000 

Summer (July-Aug) N/A 1,286,000 1,295,000 1,377,000 1,350,000 1,355,000 1,360,000 

Fall (Sept-Dec) 1,447,000 1,429,000 1,445,000 1,417,000 1,420,000 1,425,000 1,430,000 

Winter (Jan-March) 1,353,000 1,419,000 1,430,000 1,420,000 1,430,000 1,435,000 1,440,000 

WEB VISITS 

Knowledge.ca 78,496 39,4127 395,000 483,861 490,000 495,000 500,000 

KnowledgeKids.ca 11,130 58,896 100,000 164,250 168,000 171,000 174,000 

TOTAL 89,626 453,023 495,000 648,111 658,000 666,000 674,000 

WEB PAGE VIEWS 

Knowledge.ca 296,486 1,433,382 1,475,000 1,712,255 1,715,000 1,720,000 1,725,000 

KnowledgeKids.ca 13,553 125,472 250,000 403,177 406,000 409,000 412,000 

TOTAL 310,039 1,558,854 1,725,000 2,115,432 2,121,000 2,129,000 2,137,000 

TOTAL TIME ON 

SITE 

Knowledge.ca 40,828 72,000 112,916 115,000 117,000 119,000 

KnowledgeKids.ca N/A 38,000 50,827 52,000 54,000 56,000 

TOTAL 40,828 110,000 163,743 167,000 171,000 175,000 


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Overall, Knowledge Network met our targets for Average Weekly Reach in B.C. in 2010/12, exceeding targets for 

spring and summer for on-air viewership. We averaged a 4.0% audience share for our primetime schedule (BBM 

Canada Winter 2012). Knowledge Kids was strong during the spring season with new episodes of Wild Kratts and 

Rob the Robot, two of our most popular programs for kids. 

Targets for web visits and page views exceeded expectations. We attribute this success to a significant increase 

in programming available on both Knowledge.ca and KnowledgeKids.ca, including original B.C. content. We also 

made efforts to increase awareness of Knowledge Network content available online, and introduced a number of 

new interactive games on KnowledgeKids.ca. 


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Goal #3: Create original content for multi-platform delivery through 

partnerships with independent producers. 


Knowledge Network will continue to play a vital role in supporting the development and production of multiplatform 

content at a time when the industry is threatened by unprecedented economic pressures. By building 

and strengthening key relationships, Knowledge Network can provide access to funding from the new Canada 

Media Fund to independent producers across traditional and interactive media sectors. 

Percentage of all Knowledge Network Prelicenses that have a Multi-platform Component 

We track this measure through projects that are funded by and meet the criteria outlined by the Canada Media 

Fund. Prelicenses refer to the investment Knowledge Network makes in the development, production and 

broadcast of original Canadian programming. 

Budget Commitment to Independent Production 

Budget pressures continue to be a challenge; however, Knowledge Network is committed to maintaining the same 

level of funding for independent production of original content for both television, web and mobile platforms. 


2009/2010 

Actuals 


Actuals 


Forecast 


Actuals 


Target 

2013/2014 

Target 

2014/2015 

Target 

Percentage of all Knowledge Network 

prelicenses that have a multi-platform 

component 

Budget Commitment to 

Independent Production 

N/A 44% 55% 95.7% 70% 75% 80% 

$800,000 $850,000 $850,000 $850,000 $850,000 $850,000 $850,000 


This is our second year reporting out on Knowledge Network prelicenses that have a multi-platform component, 

and we exceeded the forecast by over 40%. In fiscal 2011/12, we committed a significant amount of funding from 

our Canada Media Fund envelope to the development of a new documentary series commissioned by Knowledge 

Network tentatively titled The Emergency Room. This investment had a major impact on our forecast for this year. 

We continued with our annual budget commitment to Knowledge Network independent productions through the 

commissioning and prelicensing of original content. 


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Goal #4: Increase awareness by marketing the Knowledge Network brand. 


Knowledge Network will strengthen its position as British Columbia’s valued public educational broadcasting 

service by building new relationships with communities and opinion leaders all across the province. 

Public Awareness of Knowledge Network as a Public Broadcaster in B.C. 

We conduct research each spring using Ipsos Reid’s B.C. Reid Express Omnibus Surveys to measure awareness of 

Knowledge Network in British Columbia. 

Total Number of Program Guides Circulated in B.C. 

Our Program Guide is an important vehicle for extending the Knowledge Network brand across B.C. A benefit to 

Knowledge Partners, it is distributed to donors six times a year. 


Public Awareness of Knowledge 

Network as a Public Broadcaster in B.C. 

Total Number of Program Guides 

Circulated in B.C. 

2009/2010 

Actuals 


Actuals 


Forecast 


Actuals 


Target 

2013/2014 

Target 

2014/2015 

Target 

30 25 28 26 28 30 32 

169,700 192,000 170,000 190,000 175,000 180,000 185,000 


Similar to last year’s methodology for brand awareness, we included this year an aided brand awareness question. 

When prompted, awareness of Knowledge Network is at 84%. When asked top of mind/unaided, approximately 

one-quarter of British Columbians – 26% – are aware of Knowledge Network. Significant resources would be 

required to make progress on the unaided brand awareness question. As a result, we will be revising the brand 

awareness performance measure to support the scope of our marketing efforts. 

We continued to visit a number of communities across the province in 2011/12, including Chilliwack, Ganges (Salt 

Spring Island), Kamloops, Kelowna, Vancouver, Victoria, and Sidney. 

The Program Guide continues to be an important print vehicle for extending our brand and complementing our 

online presence. In 2011/12, we exceeded our forecast for Program Guide circulation due to an increase in our 

donor base as well as a very successful direct mail donor recovery campaign. We also held donor and public 

events where our Program Guides were made available. 

Significant Risks and Opportunities 

Knowledge Network is committed to a sustainable service that is continuously improving. By leveraging internal 

technological resources through our digital facility, we have diversified our funding base with the addition of 

a Canadian children’s subscription channel. Our focus now is on developing strong working relationships with 

broadcast distribution undertakings (BDU’s) to increase carriage of the channel across Canada. 

Plans are underway to offer a high definition (HD) service to our viewers across the province in fall 2013. This is 

critical for remaining relevant and competitive in our market. We will internally fund the digital facility upgrades 

required. 


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Progress Against Government Letter of Expectations 

Below are the specific directions outlined in the Government Letter of Expectations and our 

actions in fiscal 2011/12. 

Specific Direction To The Corporation 

Make further progress toward the goals 

described in KNC’s strategic plan which was 

submitted to the Ministry on July 25, 2007, 

with revisions provided August 25, 2008, and 

September 14, 2009. Specific to these goals, 

KNC will: 

Increase efforts to raise self-generated 

revenues. 

Knowledge Network Action Plans 

Launched a Canadian subscription children’s channel in partnership with BBC 

Worldwide. 

Completed a formal review of our media partnerships, including enhanced, 

integrated benefits, capitalizing on Knowledge.ca. 

Implemented a new constituent relationship management database (CRM) 

including training for staff, to improve our marketing and fundraising efforts. 

Begin efforts to deliver broadcasting services 

on multiple digital platforms to reach a wider 

audience. 

Continue to develop original television and 

internet programming that informs, engages 

and educates British Columbians about 

issues relevant to their lives by collaborating 

with British Columbia’s independent media 

production sector. 

Build upon recent achievements in 

branding Knowledge Network by marketing 

the broadcaster as the province’s only 

independent, commercial-free educational 

media service. 

Work to include public literacy television 

and internet programming focusing on the 

challenges facing the province, including: 

Seniors’ demographic shifts; 

Significantly increased the number of program offerings available on Knowledge.ca. 

Identified funding internally to launch an HD service in fall 2013. Developed HD 

Implementation Team to lead the project. 

Engaged B.C. independent production and new media sectors through development, 

commissions, prelicenses and outreach, creating content that is meaningful and 

relevant to British Columbians. Highlights include: Liberia ’77, Family Matters, 

Paper Promises, The Price of Heartache, When the Devil Knocks, War in the Mind, 

One Big Hapa Family, Family Portrait in Black and White. 

Developed 12 new interactive games for KnowledgeKids.ca (Campfire Tales and 

Forest Melodies). 

Federal funding for B.C.-based productions via the Canada Media Fund greatly 

increased as a result of our investment in original content from independent 

producers: from $400,000 in 2007 to $1.4 M in 2012. 

Continued implementation of an integrated marketing plan to broaden community 

support and awareness across the province. Events and/or speaking opportunities 

were held in Chilliwack, Ganges (Salt Spring Island), Kamloops, Kelowna, 

Vancouver, and Victoria. Community outreach included support for independent 

filmmakers through Storyville Workshops in Kelowna and Kamloops. 

Continued to offer commercial-free programs for boomers and seniors who are 

underserved by other broadcasters in the B.C. market. Program highlights include: 

I Want to Grow Old in China – Bejing’s Tuanjiehu Park hosts a stunning spectacle 

performed by thousands of the city’s elderly. From gymnastics to disco-dancing, 

bird training to singing, they each have a hunger for living. The documentary 

follows four distinct groups as their lives and rituals unfold each morning. 

Who Rules the World? – An in-depth look at power structures and how societies 

are organized. Included the 6-part series Civilization: Is the West History? 

Men Who Swim – A group of early middle-aged men find unlikely success as 

members of Sweden’s first all-male synchronized swimming team. 

Home by Christmas – A film memoir based on filmmaker Gaylene Preston’s 

interviews with her father about his World War II experiences. 

Snapshot: The Art of Photography Fred Herzog – Fred Herzog’s photographs 

capture the city of Vancouver and its day-to-day life in vivid historical detail. 


15


Early learning initiatives; 

Asian trade and cultural awareness; 

Health care sustainability; 

First Nations communities, culture, and 

issues; 


Programming on Knowledge Kids and KnowledgeKids.ca supports early 

learning development. Programs with a literacy focus included The 

Mysteries of Alfred Hedgehog, Numberjacks and Martha Speaks. 

Program highlights include: 

Asia’s Monarchies – A look at the changing roles of leaders in the East. 

One Big Hapa Family – B.C. filmmaker and animator Jeff Chiba Stearns 

sets out to discover why everyone in his Japanese-Canadian family married 

interracially after his grandparents’ generation; a trend followed by nearly 

all Japanese-Canadians. 

I.M. Pei: Building China Modern – Architect I.M. Pei returns to his home city of 

Suzhou, China to work on his most personal project to date: a modern museum 

that complements the architecture of the 2,500-year-old city. 

Lijiang: One City, Two Tales – Reveals the rich life and culture of one of 

China’s most unique cities: Lijiang, a UNESCO World Heritage Site. 

Barefoot Doctor: Mongolia 30 Years Later – Richmond resident Dan 

Zhang, who was born in China, was 17 years old when Mao’s Cultural 

Revolution got underway and young people had to abandon school to be 

re-educated in the countryside. Dan chose Mongolia, where she became a 

“barefoot doctor.” 

Ganges – A three-part series telling the story of one of the most 

extraordinary rivers in the world: the Ganges. 

Indian Hill Railways – From the Himalayas in the north, to the Nilgiri Mountains 

in the south: for over a hundred years, little steam trains have climbed through 

the clouds and into the wonderful world of Indian Hill Railways. 

Last Train Home – Every spring, China’s cities are plunged into chaos as, 

all at once, millions of migrant factory workers attempt to return home 

by train. This award-winning film paints a human portrait of the dramatic 

changes sweeping China. 


Family Matters – The story of four BC families and how they have managed 

to stay together in the face of the manic highs and devastating depressions 

of bipolar disorder. 

Not Just a Bad Day – Mike, Erin and Martha appear to have little in common, 

but they are all living under the shadow of bipolar disorder. Through hard work 

and the hands on support of their psychiatrist, they learn how to manage their 

mood swings and lead productive, balanced lives. 

Chemo – A deeply personal glimpse inside a Warsaw chemotherapy clinic, 

where people of all ages and from all walks of life are thrown together for 

no other reason than they share the reality of cancer. 

Commissioned new Knowledge Network documentary series that will give 

insight into emergency health care and, by extension, the significant health 

care issues impacting our province today. Citizens will have an opportunity 

to participate through an interactive website that will support the television 

series. 


Pushing the Line: Art Without Reservations – B.C. filmmaker Lisa Jackson 

follows several aboriginal artists from the northwest coast who are creating 

innovative work. As likely to use pop culture or graffiti for inspiration as 

traditional “formline” design, they’re taking on topics that affect us all, and 

they’re doing it in a very modern – and very aboriginal – way. 

Buffy Sainte-Marie: A Multimedia Life – Chronicles Buffy Sainte-Marie’s 

remarkable career as singer, songwriter and activist. 


16


Challenges facing the environment, including 

climate change; 

Economic issues. 

Where appropriate, work with the public 

education system to support educational 

programming and lifelong learning initiatives. 

Explore ways to expand opportunities for 

students through collaboration with public 

post-secondary institutions offering media, 

digital arts and other relevant programs. 


How the Earth Changed History – The traditional interpretation of history 

has focused largely on human factors. Yet the natural environment has 

also shaped history since the dawn of time. This series reveals how 

geology, geography and climate have had a far more powerful influence on 

human civilization than has previously been acknowledged, through the 

perspective of a new science: geo-determinism. 

Architects of Change – They’re a new kind of pioneer: men and women 

around the world who have created models of sustainable economic 

development that counteract the threats weighing against our future. 

Farmers, chemists, architects, doctors, tradesmen and bankers are profiled 

in this series that proves it can be done. 

National Geographic Specials: Eco-Engineering – Explores cutting-edge 

technological innovations that offer a better way to build and power our 

world: floors that generate energy when people walk on them, rooms that 

can power themselves down, and a new breed of skyscraper powered by 

the wind. 

The Rapidly Changing Arctic – The Arctic ice is melting at a rate exceeding 

all forecasts, bringing with it drastic changes. The series travels throughout 

the Canadian Arctic to explore issues related to these changes. 

Earth Days – A look back at the roots of the modern environmental 

movement in America – its post-war rustlings in the 1950s, Rachel Carson’s 

incendiary bestseller Silent Spring, the first wildly successful Earth Day 

celebration and the subsequent firestorm of political action. 

Encore presentation of our successful financial series Mad, Mad Money: 

When Greed and Fear Rule the Market. In the wake of the devastating 

market crash of 2008, Knowledge Network brought viewers a season-long 

examination of the global economic system. 


The Madoff Hustle – How the world’s biggest grifter got away with it for so 

long. 

Warren Buffet: The World’s Greatest Money Maker – Multi-billionaire 

Buffet opens up about his life and methods. 

The Love of Money – The collapse of Lehman Brothers and the crash that 

followed. 

Mind Over Money – When it comes to money, are we ruled by logic or 

emotion? 

Overdose: The Next Financial Crisis – The story of the greatest economic 

crisis of our age: the one that awaits us. 

Hosted a special screening event at Thompson Rivers University in 

Kamloops as part of the Kamloops Film festival. 

Continued artShuffle.ca, a website that showcases new and established 

artists, while promoting arts programs and events around the province. 

Includes the ability to search content by school, providing opportunities for 

post-secondary schools to recognize the work of their students and raise 

awareness of their arts programs. 

Ravi Singh, Associate Director of Interactive, was a guest lecturer for a 

Broadcast and Media Communications Program. 

Recruited an intern from Capilano University’s Interactive Design Program. 


17

Financial Report 

Management Discussion and Analysis 

Provincial Operating and Other Grants 

The year variance is due to the recognition of one-time grants totalling $94,502 pertaining to Our First Voices, 

12 Takes, and A Window Looking In productions. These productions were completed and aired during 2010/11. 

Donations and Sponsorships 

During 2011/12, Knowledge received $545k of donations more than budgeted, due to very successful pledge 

campaigns. This also resulted in a positive variance of $258k over 2010/11 donations. 

Other Revenue 

There were three main items not budgeted that contributed to the budget variance of ($243k): 

- Deferred $243k in flow-through contributions 

for broadcast rights, (150,000) 

- Recognized 50% of last fiscal’s carrying costs 

on subsidiary operations, (67,200) 

- Miscellaneous revenue from multiple sources (31,739) 

(248,939) 

The year variance of $38k is due to management revenue earned from subsidiary operations beginning in 2011/12. 

Amortization of Deferred Contributions 

The budget variance of $136k is due to the recognition of revenue to offset amortization costs for these projects, 

that were not budgeted: 

- Emily Carr: Winds of Heaven 20,600 

- 12 Takes and A Window Looking In 49,500 

- Our First Voices 29,500 

- Sisters in Arms 16,400 

- Other miscellaneous projects 20,000 

136,000 

The year variance of $18k is a result of more flow-through funding received for pre-licenses during 2011/12, that 

were recognized to offset amortization. 

Salaries and Benefits 

The budget variance of ($143k) represents budgeted yet unfilled Creative Director position. 

The year variance of $96k pertains to various positions hired in place for the full 2011/12 fiscal compared to 

vacancies during 2010/11. 


18

Programming and Presentation 

The budget variance of $135k pertains to these activities that were not budgeted: 

- Branding 69,300 

- Additional captioning 25,800 

- Legal trademarks 18,900 

- Tapes and shipping 13,000 

- Promo production 8,000 

135,000 

The year variance of ($14k) is due to $12k spent in 2010/11 on the Vancouver 125 project. 

Broadcast Platforms and Corporate IT 

The budget variance of $41k relates to Q4 approval to upgrade our corporate network infrastructure, not 

budgeted. 

The year variance of ($83k) pertains to the 2010/11 implementation of a new customer relationship management 

system. 

Marketing and Development 

The ($42k) year variance is due to these activities: 

- Less costs for Phase 2 of Marketing plan during 2011/12 (20,000) 

- 2010/11 costs to investigate new business opportunity (22,000) 

(42,000) 

General 

The budget variance of $24k was caused by Q4 purchases of minor equipment that were not budgeted. 

The year variance of ($50k) is due to more equipment purchased in Q4 of 2010/11 than in 2011/12. 

Amortization of Capital Assets and Broadcast Rights 

The immaterial budget and year variances are due to actual results varying from estimates, and from slightly 

more broadcast rights purchased during 2010/11 than during 2011/12. 

Capital Assets and Broadcast Rights Acquired 

The ($602k) budget variance is due to a few major pre-license project deliverables being deferred to next fiscal, 

or were cancelled. 

The ($18k) year variance is due to more broadcast rights purchased during 2010/11, than during 2011/12. 

Income from Subsidiary 

50% of the subsidiary’s operations have been consolidated. The budget variance of $62k is due to sale of 

subsidiary shares, resulting in a partial recovery of prior year carrying costs. 

The year variance of $1,389k is due to subsidiary operations commencing in during 2011/12. 

Expenses from Subsidiary 

The budget variance of ($349k) is due to reduced operating costs achieved in the areas of marketing, signal 

distribtion, promotions and branding. 

The year variance of $599k is due to subsidiary operations commencing in during 2011/12. 


19

Financial Summary 2007-2015 (Reported in ’000) 

Provincial Operating 

and Other Grants 

Donations and 

Sponsorships 

2007/08 

Actual 

2008/09 

Actual 

2009/10 

Actual 

2010/11 

Actual 


Actual 


Budget 

Budget 

Variance 

Year 

Variance 


Target 

2013/14 

Target 

2014/15 

Target 

9,494 8,434 6,972 6,504 6,410 6,410 - (95) 6,410 6,410 6,410 

2,303 3,047 2,351 2,902 3,160 2,615 545 258 2,925 2,975 3,025 

Other Revenue (508) 441 97 117 79 322 (243) (38) 470 620 720 

Amortization of Deferred 

Contributions 

1,707 468 431 442 461 325 136 18 281 281 281 

Total Revenue 12,996 12,391 9,850 9,965 10,109 9,672 437 144 10,086 10,286 10,436 

Salaries and Benefits 5,955 4,046 3,875 3,936 4,032 4,175 (143) 96 4,068 4,068 4,068 

Programming 

and Presentation 

Broadcast Platforms and 

Corporate IT 

Marketing and 

Development 

3,141 1,416 533 596 582 448 135 (14) 562 762 912 

646 688 778 868 785 744 41 (83) 969 969 969 

860 1,796 832 1,005 963 965 (1) (42) 1,107 1,107 1,107 

Administration 417 464 542 459 452 451 1 (7) 447 447 447 

General 271 3,088 31 152 102 78 24 (50) 110 110 110 

Total Expenses 11,289 11,499 6,591 7,016 6,917 6,861 57 (99) 7,264 7,464 7,614 

Amortization of Capital 

Assets and Broadcast 

Rights 

1,707 2,141 2,499 2,912 2,959 2,873 86 48 2,822 2,822 2,822 

Net Income or (Loss) (0) (1,249) 760 37 232 (62) 294 195 - - - 

Capital Assets and 

Broadcast Rights 

Acquired 

1,590 4,319 3,151 2,497 2,479 3,082 (602) (18) 3,488 3,488 3,488 

Income from 

Subsidiary 

- - - - 1,389 1,327 62 1,389 1,294 1,294 1,294 

Expenses from Subsidiary - - - 157 756 1,104 (349) 599 750 750 750 

Subsidiary Net Income 

or (Loss) 

- - - (157) 633 223 411 790 544 544 544 

Total Debt - - - - - - - - - - - 

Retained Earnings 1,079 1,406 1,222 1,405 1,730 1,730 1,730 1,730 


20

Subsidiary/Operating Segment Summary Information 

Knowledge-West Communications Corporation (KWCC) was incorporated in 1981 and is owned in part by 

Knowledge Network Corporation. KWCC owns and operates BBC Kids, a Canadian subscription children’s channel. 

The CRTC approved KWCC’s acquisition of assets for BBC Kids in April 2011. BBC Kids is a commercial-free 

service reinforcing the values of both Knowledge Network Corporation and the BBC. KWCC financial results are 

consolidated under Knowledge Network Corporation’s audited financial statements. 

Knowledge–West Communications Corporation Board of Directors 

Nini Baird, C.M. 

Chair 

Mitch Taylor 


Jeffrey Lee 

Hilary Read 

Vice-Chair 

Director 

Secretary and Financial Officer 

Director 

Senior Management 


Lisa Purdy 

President of BBC Kids 

Director of Knowledge Kids and BBC Kids 

For more information on BBC Kids, visit bbckids.ca 


21

Appendix A 

2011/12 Audited Financial Statements 


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Contact Information 

Knowledge Network Corporation 

4355 Mathissi Place 

Burnaby, British Columbia 

V5G 4S8 

Phone: 604.431.3222 

Toll Free: 1.877.456.6988 

Email: info@knowledge.ca 

Knowledge.ca | KnowledgeKids.ca 


47

AnnUAL REPORT 2011-2012 - Knowledge Network

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