1. Recent Franchise Renewal
Negotiations
Community Benefits
July 13, 2017
Presented by:
Sue Buske

2. Outline for Success Build an educated renewal team
Create franchise renewal leadership team
Include community leaders, PEG leadership, and City staff
Brief City officials & staff, CMC board, & community leaders on renewal basics, anticipated process, and timeline
Initial and ongoing
Determine information needed
Past performance
Future needs & interests
Determine ways to gather that information
Research tools
Use multiple information-gathering techniques

3. Key Elements of Franchise Renewal Process
Starts months before current franchise expires
Requires franchise performance review of operator
Community needs assessment
Determine renewal goals and prepare draft Franchise Agreement
Must be based on needs assessment and past performance review
Conduct an Informal Process -- Negotiations
Negotiations can take a year or more
If negotiations reach an impasse, move forward with the issuance of a RFP

4. Renewal: Past Performance/ Compliance Review
Past Performance Review activities include:
Franchise fee / financial review of cable operator
Franchise compliance review
Technical review of the cable system
Telephone survey -- customer service, PEG, other related issues
Public input gathered during needs assessment process
Reports that document the findings

5. Needs Assessment Process
Needs Assessment activities to identify future community needs and interests may include:
Community focus groups
Telephone survey
On-line community survey
Stakeholder meetings
Evaluation of current PEG access equipment, facilities, and services
Identify & recommend upgrades in facilities and services
Public hearing
Reports that document the findings of all activities and make recommendations

6. Key PEG-Related Franchise Provisions
PEG Access Channels
PEG access capacity equivalent quality to local network and PBS affiliates
On both lowest cost tier of cable service & HD Tier
Number of “channels” can be increased
PEG channels located in a consecutive or near consecutive “run” of channels
PEG channel location cannot be changed without local approval, and then only for “must-carry” or technical reasons
PEG Video-on-Demand
PEG Content on EPG
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7. Interesting Findings Subscribers and HD
About 60% of subscribers pay extra to receive an HD tier of service (average of responses to recent on-line surveys)
35% of these HD subscribers said they rarely or never watch programs that are NOT delivered in HD
What does this tell us about what should be included in the renewal franchise regarding PEG access channels?
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8. Key Franchise Provisions
Communities with PEG HD Channels (partial list)
Philadelphia, PA (Comcast)
Minnesota (Comcast)
Minneapolis, St. Paul, Coon Rapids, North Suburban Communications Commission, North Metro Commission, etc.
Washington (Comcast)
Vancouver, Tacoma, Renton, Seattle
Manhattan, NY (Verizon, Time Warner, RCN)
Brooklyn, NY (Verizon, Time Warner, Cablevision)
Bronx, NY (Verizon, Cablevision)
Queens, NY (Time Warner, Verizon)
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9. Key Franchise Provisions
Communities with PEG HD Channels (partial list)
Chicago, IL (RCN)
Fairfax County, VA (Cox)
Massachusetts (RCN)
Lexington, Stoneham, Massachusetts, Newton, Framingham, Brookline, Weston Waltham, etc.
Longmeadow, MA (Comcast )
Central Vermont Community TV (Charter)
Barre, Cabot, Chelsea, Marshfield, and 8 other towns
Portland, OR (Comcast)
Gresham, OR (Comcast)
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10. Interesting Findings PEG Channels on Electronic Program Guide
About 56% of subscribers indicated that the EPG is their most frequently used source of information to decide what to watch on cable TV (average of responses to 5 recent telephone surveys)
Subscribers in these surveys reported that they used the EPG 3 times as often as any other source to find cable TV programming information
What does this tell us about what should be included in the renewal franchise regarding PEG access channels?
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11. Key Franchise Provisions
Communities with PEG Channels on EPG (partial list)
Philadelphia, PA (Comcast)
Central Vermont Community TV (Charter)
Barre, Cabot, Chelsea, Marshfield, and 8 other towns
California (Comcast)
San Jose, Sacramento, Fresno, Marin County, Santa Maria
Manhattan, NY (Verizon, Time Warner, RCN)
Brooklyn, NY (Verizon, Time Warner, Cablevision)
Bronx, NY (Verizon, Cablevision)
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12. Key Franchise Provisions
Communities with PEG Channels on EPG (partial list)
Chicago, IL (Comcast & RCN)
Fairfax County, VA (Cox)
Shrewsbury, MA (Shrewsbury Electric/Cable Co-op)
Minnesota (Comcast)
Ramsey Washington Commission (11 cities)
North Suburban Commission (9 cities)
Bismarck, ND (MidContinent Communications)
Portland, OR (Comcast)
Gresham, OR (Comcast)
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13. Other Key PEG-Related Franchise Provisions
Interconnection
Between all cable operators serving the community
Between adjacent cable systems
PEG facility as interconnection point
Funding for PEG
Facilities and equipment
Replacement of facilities and equipment over life of franchise
Annual PEG support (for access services)
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14. Key Franchise Provisions Customer Service Issues
Analysis of focus group brainstorming and responses to survey questions can identify customer service concerns -- for example:
Telephone answering time
Need for a prompt confirmation of cable service order
Accuracy of cable bills
Ability of CSRs to communicate well in English
Responsiveness of customer service personnel
Need for a local office
What do the results tell us about what should be included in the customer service section of the renewal franchise?
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15. A Few Additional Tips Ask questions in a clear and unbiased fashion
Ask questions that could yield information to help assess future needs
It’s about more than just “I want lower cable rates”
Examine longitudinal trends if possible
Ask questions of both subscribers and nonsubscribers
You are assessing community needs and interests, not only current subscriber needs and interests
Stay informed about recent renewal outcomes
Expect negotiations to take at least months
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