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As consumers choose new ways to access television programming, entities including Ely TV are feeling the consequences.
That’s prompted a request by the city of Ely, via its telecommunications access board, to get behind legislation that would expand collection of franchise fees, which support the broadcasts of local public access programming.
The city is appealing to lawmakers to approve legislation that would make broadband subscriptions subject to the franchise fee. Currently, those fees are only collected for cable television service.
The move comes amid declines in franchise fees, as more consumers shy away from traditional cable television subscriptions, and amid a push to expand local broadcasts beyond cable television to the internet and avenues such as YouTube.
“While we distribute our programming only on cable, we have received many requests to livestream our meetings on the internet and replay our content for those without cable,” mayor Heidi Omerza wrote in correspondence to State Sen. Grant Hauschild (D) and State Rep. Roger Skraba (R). “Without franchise revenue from data subscribers there is no financial ability to provide access out of cable subscribers.”
Ely joins other municipalities, trade groups and the League of Minnesota Cities in supporting SF 2045, dubbed the Equal Access to Broadband Act. It would allow cities to franchise broadband similarly to how cable systems are currently franchised.
“There is some effort being made for franchise fees to be collected from those that are utilizing internet services,” said city clerk-treasurer Harold Langowski. “From what was presented to us on a statewide basis, public access is suffering a decline from subscribers who are cutting the cord. The way franchise fees have been paid, companies are starting to see a reduction, and before we were talking about (the Ely TV) contract, if we were to lose those subscribers, we could possibly see another direction.”
Langowski said the franchise fee expansion would help expand the reach of local public access broadcasts.
“We could provide these meetings and other content via the internet, YouTube,” said Langowski. “We’ll see where it goes. I do know our local representative is supporting this effort. I think it even started the last legislative cycle.”
Todd Crego, a former on-air personality at WELY radio, was behind the camera at Tuesday’s city council meeting and has operated Ely TV for more than seven years.
In addition to broadcasts of city meetings, Ely TV also has other local programming, including broadcasts of some local sporting events.
Council members approved an additional $500 in payments to Ely TV for broadcasts that went beyond contracted requirements in February.
Crego is paid $1,750 per month to provide the service, with funds coming from the revenues generated by franchise fees.
Council member Al Forsman endorsed the effort to expand franchise fees.
“I do hope our representatives take the position that all broadband providers should be charged this fee, whether it’s a satellite, local system, wired or fiber service,” said Forsman. “It keeps the playing field even.”
