worcester cable

Here is something any city's negotiating team may consider interesting and useful. Thanks to our friends at the Buske Group:

Based on the national data available for all to see at the NCTA
web site (which I have repeatedly said should be checked
periodically to see if the propaganda coming from your local
company is confirmed by industry stats), the major sources
of cable revenues that are used to calculate franchise fees --
NOT including telephone and internet revenues -- continue to
grow every year to new record highs in each category:

BASIC AND PREMIUM REVENUES
(from http://www.ncta.com/ContentView.aspx?contentId=69):

Basic Revenues:
2007 -- $33.608 Billion (estimated)
2006 -- $32.274 Billion
2005 -- $31.075 Billion

Premium Revenues:
2007 -- $6.477 Billion (estimated)
2006 -- $6.414 Billion
2005 -- $6.389 Billion

LOCAL/SPOT ADVERTISING REVENUES
(from http://www.ncta.com/ContentView.aspx?contentId=70):
2007 -- $4.752 Billion (estimated)
2006 -- $4.296 Billion
2005 -- $3.978 Billion

Combined, these three major cable revenue categories that
are used to compute franchise fees have been INCREASING
at an average rate of about 4-5% per year during the past
decade. (Have you had any rate increases in the past few
years or so?) This is why local governments should regularly
audit the franchise fee amounts that they receive.

Even though the growth in the number of cable subscribers
has flattened, the rate increases keep the "cable" revenues
soaring. Red flags should fly -- and an audit should be
triggered -- if your cable company's franchise fee payments
(or additional PEG funding that is tied to cable revenues) go
down.

Randy VanDalsen
The Buske Group

The Worcester Regional Research Bureau’s recent report, “Cable TV: Get With the Program,” includes a table in which the numbers given for support of access television are wrong.

“The numbers for five cities that we called are off by two hundred thousand to over one million dollars,” said Mauro DePasquale, Executive Director of WCCA TV 13. “In three instances they said that Public, Educational and Government access channels combined received amounts that were lower than the amount just for Public access only, in that particular city.”

For more information, read the full text of the press release and the chart comparing incorrect and correct numbers.

You can also download a PDF of the press release and chart.

The Worcester Regional Research Bureau’s recent report, “Cable TV: Get With the Program,” includes a table in which the numbers given for support of access television are wrong.

“The numbers for five cities that we called are off by two hundred thousand to over one million dollars,” said Mauro DePasquale, Executive Director of WCCA TV 13. “In three instances they said that Public, Educational and Government access channels combined received amounts that were lower than the amount just for Public access only, in that particular city.”

WCCA made phone calls to Boston, Brookline, Fort Worth, Dayton and Grand Rapids and spoke with executive directors of access centers as well as cable regulators.

“We didn’t just speak to the access people, we also spoke to the city regulators. There was a certain amount of surprise on behalf of the regulators in Fort Worth and Boston regarding the WRRB’s report on their cities,” said De Pasquale, “They felt they had supplied WRRB with all the information and were surprised it was reported differently.”

In the case of Fort Worth, WRRB only reported what access television receives for capital and equipment in a grant directly from the cable operator, it did not report that Fort Worth access receives one million dollars in operational funding from the city.

Boston’s figures left out a capital grant and an additional grant from the city to the Public access center for one million dollars to go for a new building.

Grand Rapids numbers were underreported by over one million dollars.

Comparing these cities and the support they provide for Public access through franchise fees and capital grants, WCCA TV 13’s budget should be anywhere from almost six hundred thousand to nine hundred thousand, if it were funded at the same level as these five cities.

“It’s not just about money, it’s also about services. We provide as good or better services and have as much or more programming on our channel as the five we looked at,” said Pasquale. “WRRB needs to re-do their research before they make recommendations that the city cut our budget by two-thirds and next time, try to present accurate numbers.”

Chart of corrected numbers.

For additional questions Mr.DePasquale can be reached at WCCA TV 13 at 508-755-1880.

Footnotes

1. Randy Westerman, Manager, Cable Services. Mr. Westerman said he had tried to tell the Research Bureau that the $744,000 was only for capital and equipment, but he felt they didn’t understand. Fort Worth also receives an additional $1,000,000 for operations.
2. Research Bureau only reported yearly capital and equipment funds (as required by TX law at 1%), it did not report operational funding provided by the city.
3. Fort Worth runs both Public and Government, splitting the total amount by two, we can assume Public receives this amount.
4. Laurie Cirivello, Executive Director, Grand Rapids Community Media
5. Rick Hayes, Executive Director, Dayton Access Television. Randy Bellinger, Station Manager, City of Dayton.
6. Thomas Bellotti, Executive Director, Brookline Access Television.
7. Brookline runs both P & G together, splitting the total amount by two, we can assume Public receives this amount.
8. Curtis Henderson, Executive Director, Boston Neighborhood Network. $1 mil grant in addition to franchise fees, was received in 1999.
9. Subscriber numbers taken from the National Association of Telecommunications Officers and Advisors Membership Directory, 2006.
10. Mike Lynch, Director of Cable Communications. This amount is franchise fees to PEG only. Not capital, equipment grants.
11. City gave Public access $1mil for building, equipment.
12. Yearly amount + $1mil from city, amortizing that $1mil over 10 years at $100,000 per year. Franchise is 10 years in length.

December 12, 2006

Dear City Manager O’Brien,

Thank you for your support of community media, and in particular WCCA TV 13. As you know, community media enriches the lives of Worcester’s citizens. In the past year alone WCCA has collaborated with the Worcester Senior Center, YMCA, Worcester Public Schools, Regional Environmental Council, and the Worcester Community Action Council, making WCCA an essential part of the fabric of this city.

We appreciate your continued acknowledgement of the importance of WCCA and look forward to the continued support of the City Manager’s Office and the Worcester City Council.

WCCA is a necessary cultural institution in Worcester. In 2005, Worcester’s Cultural Coalition invited Charles Landry to Worcester to create open dialog about the future of Worcester. Landry focuses on the use of culture on city revitalization. Highlighted in this research is the importance of civic engagement, quality of life issues, and a vibrant downtown. Attached to this letter is a copy of the Creative City Initiative, created by the Worcester Cultural Coalition. WCCA’s mission and operation match the goals set forth by the Creative City Initiative. This further illustrates how WCCA is a valuable resource. Any loss to WCCA would negatively impact Worcester’s cultural and civic landscape.

We look to you for support in assuring secure funding and positive future for WCCA and Worcester’s cultural landscape.

Sincerely,

Nicole Belanger

A preliminary report has been issued that gives WCCA TV 13 high marks in its programming, training and community service. The report, issued by Riedel Communications, Inc. of Maryland cites WCCA’s airing of one-hundred and twenty-three hours of nonprofit and community programming per week and places a value on that programming of over one million dollars.

(Download the preliminary report as a PDF. An HTML version without footnotes or graphics is also available.)

“We have over one-hundred Worcester area nonprofit groups using the channel,” said Executive Director Mauro DePasquale, “If they had to buy that air time from Charter it would cost them over a million dollars.”

The report states:

WCCA TV 13 is doing a good job of having a wide variety of programming and engagement of community groups. When we compare the variety of programming on WCCA against other access centers around the country, we believe that WCCA has achieved an excellent balance and stands out as an example.

The report calls for WCCA to be given a second channel to run as is provided for in the current franchise agreement. It further states that WCCA needs more space for training community groups and producers and more resources, particularly for new equipment, to increase on its current level of production.

“We’re finding more and more individuals and groups are asking for services and we are having a hard time keeping up with the demand at our current funding levels,” said DePasquale, “One of our big problems is our equipment is quickly getting old and out of date.”

Along with a comprehensive assessment of WCCA facilities and operations, a Focus Group was conducted in which forty people representing nonprofit groups, government agencies and individual productions attended. Eighty-eight percent of the participants said that WCCA TV 13 was important or very important. Sixty-five percent of the participants said they had thought about producing a show at WCCA TV 13. Most of the topics for programming proposed figuring out a way to better communicate services to residents of the greater Worcester area.

The report will be finalized after results from a community survey are tallied.

Riedel Communications, Inc. was hired by WCCA to do the assessment. Bunnie Riedel, President, is one of a handful of experts in the country on the subject of Public access television and cable franchising. Along with advising communities, FCC commissioners and access centers, Ms. Riedel has spoken internationally and advised foreign governments in the areas of cable and access television.

“From a brief look at the community survey, it looks like WCCA is enjoying a seventy-five percent approval rating from the community,” said Riedel.

WCCA has posted the preliminary report on its website. Questions concerning the report can be directed to Mauro DePasquale at 508-755-1880.

The Worcester Regional Research Bureau has released a report (PDF) looking at cable service in Worcester.