Switch to Dish could affect Fredonia’s budget
By MICHAEL RUKAVINAArticle Photos
The longer the squabble between LIN Television Corporation (the parent company of WIVB and WNLO) and Time Warner Cable continues, the greater the chance there is that avid viewers of Channel 4, and cable customers, will begin to look elsewhere for their television needs.
Since the discontinuation of broadcast announcement, television antennas have been flying off the shelves at local retailers proving that local viewers are going to do what they can to supplement their viewing needs of popular television shows like "Survivor," "Oprah," "The Amazing Race," and NFL Football. For cable customers, there are not many options at this point, and should many decide to switch to a satelite dish, it could come back around to hit municipal budgets in the end.
"When they first started cable television, there was an agreement put in place that because they were using the public right away for telephone poles to transfer their cables on, we were entitled to some compensation," said Fredonia Mayor Michael Sullivan, regarding the village franchise fee agreement with Time Warner. "Compensation being from zero to 5 percent with our last two contracts being negotiated at the 5 percent. There's always been a debate of what we get from the 5 percent - just over the air? Does it include their advertising revenue? The language always changes in that agreement; what we can charge is based on state and federal law."
According to Sullivan, the franchise fee for service with Time Warner is budgeted to bring in $117,000 in revenue this year alone for the village. Last year the budgeted amount was $90,000 and actually brought in a little over $100,000.
"I'm not saying they're going to lose everybody, but if they start to lose people and the amount of (customers) begins to drop then it can make it pretty tough. It will affect everyone at some point if there is a big change. The problem is if (subscribers) leave now, they aren't necessarily coming back. ... I just don't know what they're hoping to establish here and it's kind of unnerving," Sullivan said. "We can't tell them what to do. I know there was a thought of getting a letter of support out one way or the other and make a decision of what we want to do but unfortunately it's a business decision. It will hit us if they lose customers. Because of this it will have an effect on the village without any doubt."
Under the franchise agreement Sullivan said the village has the right to request that Time Warner attend a review meeting with the board once a year.
"I think Monday night we're going to have to have a letter sent asking to have that meeting because it's been a while since we've had them in town," he said. "We have to find out about what kind of hit we can anticipate because it does become a budget problem for us so we'll have to know what they're losing."
The town of Pomfret also receives a franchise fee from Time Warner. According to town Supervisor Don Steger the amount is significantly less because there's fewer than 500 total customers outside the village. During Wednesday's Pomfret Town Board meeting, Steger received a letter of correspondence from Time Warner advising the town that more channels are due to expire soon.
Letters like this seem to come across the town hall desk more then a few times a year, but now are taking the notice more seriously. Channels set to expire soon include: WKBW (Buffalo ABC affiliate), CNN, TBS, Comedy Central, Nickelodeon, TNT and USA.
