Commission hears budget update and briefing on streaming-service fee exemption

At the March 6 meeting, staff briefed the Sacramento Metropolitan Cable Television Commission on revenue trends and the effect of streaming-service consumption on franchise and PEG fee collections.

Commission staff member Josh explained that customers who receive video via streaming services generally do not pay franchise and PEG fees to local cable franchise authorities. Josh said that federal and state legal frameworks currently exempt some streaming services from franchise/PEG fee obligations.

A subsequent budget update noted an interim projection of $6,300,000 for the per-capita general fund distribution. Staff said the commission will meet that projection but may need to draw on reserves in the near term; staff indicated reserves will remain substantial for following fiscal years. Staff promised a more detailed chart at the June meeting and offered to meet one-on-one with commissioners before then to answer budget questions.

Why it matters

Franchise and PEG fees are a key local funding source for channel operations and community-media programs. The expansion of streaming services has reduced the population of cable subscribers who pay those fees, and staff said legislative changes that might alter that arrangement appear unlikely this year.

What the record shows

Staff noted both state and federal legal components that affect fee eligibility and said there have been discussions at both levels about reevaluating the exemption for streaming services. No specific legislative text or statutes were cited in the public record at this meeting; staff said they will continue to monitor developments and provide updates.

What happens next

Staff will present a budget chart at the June meeting and said they will meet individually with commissioners to answer questions about reserves and projected shortfalls.