RECENT FRANCHISE RENEWAL PEG ACCESS OUTCOMES (re HD, VOD, EPG, Funding)

Transcription

1 RECENT FRANCHISE RENEWAL PEG ACCESS OUTCOMES (re HD, VOD, EPG, Funding) City/PEG Entity PEG Channels in HD PEG VOD Electronic Program Guide PEG Capital & Operations Borough of Bronx, NY (2011) (vision) Borough of Brooklyn, NY (2011) (vision) Cambridge, MA (2011) (Comcast) Yes (PEG must be equivalent in functionality, capacity and features to local broadcast channels once system goes 100% digital) Yes (by later of 12/31/12 or when system is 100% digital) Yes Yes Chicago, IL (2011) (RCN) East Multnomah County, OR (2011) (Comcast) Fairfax County, VA (2013) (Cox) Borough of Manhattan, NY (2011) (Time-Warner) Portland, OR (2011) (Comcast) St. Paul, MN (2015) (Comcast) Vancouver, WA (2013) (Comcast) Yes No Yes Yes Yes Yes Yes (separate agreement with access corporation) Yes (facilities, equipment and equipment repair) Prepared by The Buske Group Page 1

2 St. Paul, MN Comcast ~53,000 subscribers s) Two-way activated, fiber to the node design (hybrid fiber-coax), up to 500 homes per node. Electronic components: 750 MHz active, 1 GHz passive. Comcast to pay all costs if system design changes require modifications to PEG facilities. Interconnection with contiguous to share PEG programming. Free expanded basic service drop to public and private schools, public libraries, police & fire stations, community centers, public buildings. Comcast shall construct, equip and maintain an upgraded fiber I-Net to connect City and St. Paul Public Schools locations for their non-commercial use. Comcast to pay all costs if system design changes require modifications to I-Net facilities. Initially: 3 Public, 1 Government, 1 Educational and 1 regional. Current channel positions may not change unless City agrees or required by federal law. Comcast must provide dedicated connections to each PEG master control, deliver all PEG signals without degradation, and use components and provide maintenance services for PEG channels and associated system equipment of the same quality as provided for other channels. Comcast to provide equipment to enable live remote transmissions to PEG master controls. s must be able to record, select and view PEG channels in the same manner as local broadcast channels. PEG HD channels 1st: within 120 days of City request; 2nd: 1 year after franchise date, 120 days after City request; 3rd: City may request after 5 years. When 80% of basic channels are only HD, City may request remaining PEG SD channels to be in HD (up to 7 SD/HD channels). Each PEG HD channel to be located near HD local broadcast or news/public affairs channels. A PEG HD channel must show at least 5 hours in HD, 5 days/wk. PEG capital grant: 2.5% of Gross revenues, paid quarterly. These payments are not part of the franchise fee. Comcast must provide and maintain the connections to any existing or future PEG playback facility. Comcast Side letter agreement permits PEG capital grant funds from Comcast to be used for any PEG-related purposes. Two daily cross-channel spots to promote PEG programs and services. Two annual bill stuffers to promote PEG programs and services. Prepared by The Buske Group Page 2

3 Fairfax County, VA Cox ~200,000 subscribers s) capacity: 860+ MHz Interconnection with other broadband systems to exchange PEG signals, and with Reston cable system s I-Net. Free drop to public schools, public libraries, police & fire stations, to include basic service, most highly subscribed tier of non-basic service (not pay-per-view or premium programming), & converters. Cox to update equipment if required by changes to its technology. Cox shall construct a bidirectional, fully fiber-optic I-Net (paid for by the County) to link public, educational, and governmental facilities in the County (395 sites specified). Cox shall provide full GIS data regarding I-Net (including fiber count, splice enclosures and other cabinets or fixtures, and locations), in a format that is compatible with the County s GIS system, updated upon completion of the I-Net construction. Up to 14 PEG channels (1 Government, 5 Educational, 4 Public, 4 reserved). At any time, County may require 3 PEG channels in HD (also available in SD). After 5 years, County may require more PEG HD channels. Cox must provide, install, and maintain all PEG HD transmission equipment. If advanced video format other than HD is primary video feed of half of commercial programmers on Cox system, County may require up to 3 PEG channels in the advanced format. A cable box must not be needed to receive any PEG channel. Cox to update all PEG channel distribution equipment if required by its system design changes. PEG channel transmission quality to be equal to that of any similar commercial channel. Initially, 30 hours of PEG VOD capacity. After 5 years: up to 100 hours of PEG VOD. PEG VOD quality, menu, search, & recording ability same as commercial VOD. PEG & commercial channels to be displayed similarly on Cox s menu system. PEG channels to have same functionality as commercial channels. PEG Grants: 3% of Cox s Gross Revenues -- for any purpose permitted under federal/state law. Cox to maintain I-Net, its costs for which to be considered as PEG capital costs. Cox to provide all equipment needed for transmitting and headend processsing of PEG signals from each PEG origination site in formats specified. Cox s PEG signal transport links shall function as reliably as Cox s system as a whole, no more likely to fail than is the system to fail as a whole. Cox Cox waives any claims that its PEG Grants constitute franchise fee payments. Cox to pay all costs to include PEG channels and PEG program information on on-screen and online listings. PEG channel listings included in any printed program guide. Cox to provide free ad inserts to publicize any PEG channel changes. Prepared by The Buske Group Page 3

4 City of Portland and East Multnomah County, OR (Mt. Hood Regulatory Commission -- MHCRC) Comcast ~150,000 subscribers s) capacity: 860+ MHz Free expanded basic, Digital Starter or equivalent all accredited schools. system Interconnected w/contiguous systems in Washington County and Clackamas County, OR, and Clark County, WA: (1) to provide bi-directional capability to transmit PEG programming, and (2) for carriage of signals between I-Nets of Multnomah County and the contiguous counties listed above. I-Net provides fiber connectivity to over 20 public agencies at 270+ facilities in City/ County. Eight hubto-hub backbone fiber links (4 with 6 strands, 4 with 12 strands). Comcast provides all electronic and other physical assets needed to operate the I-Net. City/County may use PEG/I-Net Fee from Comcast to expand/upgrade the existing I-Net. Comcast must provide I-Net network facilities, infrastructure, transport operations and maintenance. About 280 I-Net sites. Monthly rate is about $640 per site for up to 1 Gbps. Most sites have 400 Mbps service. Initially, 16 downstream PEG channels (8 analog, 8 digital). When Comcast ends analog service: 8 standard definition PEG channels. In addition: (a) 2 HD PEG channels initially; (b) 2 more HD PEG channels after 12 months; (c) 2 more HD PEG channels after 24 months; and (d) 2 more HD PEG channels after 36 months. At least 80% of PEG programs must be produced in HD to activate an HD channel, and not more than 50% may be character-generated. Minimum of 31 hours of PEG VOD capacity at any given time. Comcast must transport PEG channels without degradation or discrimination against PEG channels re functionality, signal quality & features as compared to broadcast channels. Live PEG origination capability from 6 primary sites, any I-Net location, and any interconnected PEG origination point. Any PEG channel assignment change requires prior approval of jurisdictions, and Comcast must pay $5K or provide $9K of ad inserts to publicize the change. PEG/I-Net fee: 3% of gross revenues paid to jurisdictions for PEG/I-Net capital costs, in addition to 5% franchise fee. Jurisdictions to divide these fees as follows: 1% for PEG; 1% for I-Net; 1% for PEG or I-Net City and East Multnomah County (MHCRC) Comcast pays all costs to include PEG channels and PEG program information on its Electronic Program Guide and any printed program guide City: $878,194 for PEG (Portland Community Media) in , with annual CPI adjustment. County/ MHCRC: 60% of franchise fees for PEG (Metro East Community Media). Prepared by The Buske Group Page 4

5 City of Vancouver and Clark County, WA Comcast ~85,000 subscribers s) capacity: 750+ MHz design: active 2-way plant. Free basic and expanded each City building, public libraries and schools. Interconnection with adjacent to share PEG programming. Existing I-Net to continue, owned and managed by Comcast. I-Net subscribers to contract with Comcast for fee that permits reasonable return on investment. PEG capital support funding from Comcast may be used to purchase I-Net hardware and services. I-Net to provide one Gbps connections, with aggregate backbone transfer rate of two Gbps. Existing six PEG channels (1 P, 2 G, 3 E) to continue. City/County may activate 2 more PEG channels. All PEG channels to be located on lowest tier available to subscribers. Comcast to HD simulcast 3 PEG channels starting October Up to 3 more PEG HD channels may occur within three years, after meeting criteria. In a Side Letter, Comcast agrees to provide 6 hours of PEG videoon-demand after October 1, This may increase to 24 hours after meeting requirements. Comcast is required to consult with City/County and provide at least 60 days advance notice before any changes in PEG channel assignments. Comcast to provide $1 per subscriber per month (to be paid quarterly) for PEG capital support, in addition to 5% franchise fee. After January 1, 2015, City/County may initiate process that could increase PEG capital support to 1.5% of gross revenues. PEG capital support funds may be used for facilities, equipment, and equipment repair, but not ongoing maintenance City/County In Side Letter, Comcast also agrees to include program information for all PEG channels on Electronic Program Guide Comcast s PEG capital support funding must be matched by equivalent amount spent by City/County and PEG providers on operating support for PEG. Prepared by The Buske Group Page 5

6 Chicago, IL RCN ~435,000 subscribers (including Comcast, RCN and WideOpenWest) s) capacity: 750+ MHz. One free Expanded Basic service outlet to 48 libraries, schools, fire and police stations, and other public buildings. Interconnection with any other franchisee in City, to transmit PEG and local origination programming. Interconnection to deliver 3 channels from main library and 6 channels from Chicago Access Corp. (CAC) or other designated central interconnection facility. No interconnection charges to City or CAC by RCN. RCN agrees to cooperate, free of charge, with any City planning process to explore l-net needs of local govt. and educational institutions. 10% of usable channels provided at no cost to CAC for its non-commercial use and control. Two local government channels provided at no cost to City for its non-commercial use and control. One LO channel provided for use by Chicago producers and businesses, administered by City. CAC and City channels to be delivered in HD (6 months notice for 1st HD channel, then 2 months). CAC and City channels also delivered in SD as long as basic SD service is provided. VOD capacity: 30 hrs/wk for CAC; 30 hrs/wk for City. RCN must provide free equipment and service to CAC and City to transmit and monitor their designated channels. RCN s system shall permit CAC and City to transmit live programs from remote locations. RCN and all other franchisees must designate the same channel number locations on their systems for all CAC channels, at least two govt. access channels and the City-wide LO channel. To CAC: quarterly payments of 0.67% of gross revenues. To City: quarterly payments of 0.33% of gross revenues. No restrictions as to the City s or CAC s use of these funds from RCN, which are in addition to franchise fees and other payments from RCN to the City. Funding amounts indicated in equipment & facilities column are unrestricted. Prepared by The Buske Group Page 6

7 Cambridge, MA Comcast ~31,500 subscribers s) capacity: 78+ channels (750+ MHz) must be able to support 2-way interactive service (e.g., DVRs), HDTV. Free basic each public building and school. Interconnection with any other multi-channel system in City, to transmit PEG programming. 10% discount on Digital Starter Service for seniors (age 65+) I-Net was built by and is owned and operated by the City. Initial: 6 channels. 2 more channels available after 6 months notice from City if programming minimums are met. Comcast must provide/maintain fiber links and transmission & program-monitoring equipment to PEG origination sites. Re-opener in 2013 to discuss feasibility of VOD for PEG, PEG in HD, and PEG listings on program guide. Current channel locations may only be changed if required by Federal law, and Comcast must pay $3,500 per PEG channel for relocation costs. After system is converted to digital, Comcast must keep PEG channels on introductory tier. $1,190,000 for previous franchise noncompliance. Initial: $500,000 (incl. $135,000 to transmit live remote PEG signals via City s fiber network). After 12 months: $141,333 (incl. cost of automated PEG programmonitoring). Ongoing: $141,333/year City Annual text message promoting PEG on bills City allocates all of the 5% Franchise Fees paid to it by Comcast to support PEG operations. Prepared by The Buske Group Page 7

8 Borough of Manhattan, NY Time Warner ~600,000 subscribers (including Time Warner, RCN and Verizon) NOTE: RCN and Verizon have separate agreements with Manhattan s) capacity: 77+ channels. design: active 2-way plant. Free basic designated public buildings and the 2 Public Access centers. 4 live remote origination sites (total cost to Time Warner: up to $58,000), connected to master control. shall be designed to enable it to be interconnected with other in New York City, to transmit PEG programs. Time Warner permits City to use 10% of subscriber network backbone (up to 6 strands); 2 more strands if backbone has 80+ strands. In lieu of providing more I-Net capacity to that described above, Time Warner shall initially provide $14,393,000 to City for I-Net capital costs, to cover the collective obligation of its NYC franchises. Time Warner to also provide racks and back-up power in its headend for City s I-Net equipment. Time Warner must monitor, test and maintain I-Net. Initial: 4 P & 5 G/E channels. Plus, if program minimums met: 60 days after Effective Date: 2 P & 1 G/E channels; By : 1 P & 2 G/E channels; By : 2 P channels. PEG channels on must-carry signals tier (unless in HD). P channels shall be assigned to locations as configured elsewhere in City, and may not be changed arbitrarily. Such changes require at least 45 days prior notice and must be extensively advertised. Relocation of G/E channels 74 & 75 require prior approval of City. Locations may be changed if required by law. Time Warner must provide/install/ maintain PEG transmission links & equipment. 25 hours of VOD capacity. 1 HD channel (90 days after Effective Date). For : 25 hours of VOD capacity. Two 1080p HD channels. G/E Access Grants (for all Time Warner franchises in New York City): $6,050,000 over franchise term, in equal annual amounts. Cash Grants : Yr.1: $2,500,000 Yr.2: $500,000 Yr.5: $750,000 Yr.6: $750,000 $1,700,000 worth of promo spots on cable system ($1,339,000 of which to occur during 1st three franchise years). For Public Access: Channel Grants, per sub/month: Yrs. 1-2: $0.90; Yrs. 3-5: $1.05; Yrs. 6-8: $1.25; Yr. 9: $1.30; MNN program listings on channel guide if technically feasible and commercially reasonable. Info re MNN activities & channels provided to new subs, to all subs annually, and on TW website. 100 promo spots per month. Prepared by The Buske Group Page 8

9 Borough of Brooklyn, NY vision ~450,000 subscribers (including vision, Time Warner, RCN and Verizon) NOTE: Time Warner, RCN and Verizon have separate agreements with Brooklyn s) capacity: 77+ channels. design: active 2-way plant. Free basic designated public buildings and the Public Access center. 4 live remote origination sites (designated by operator) connected to master control. shall be designed to enable it to be interconnected with other in New York City, to transmit PEG programs. vision permits City to use 10% of subscriber network backbone (up to 6 strands); 2 more strands if backbone has 80+ strands. In lieu of providing more I-Net capacity to that described above, vision shall initially provide $7,782,000 to City for I-Net capital costs, to cover the collective obligation of its NYC franchises. vision to also provide racks and back-up power in its headend for City s I-Net equipment. vision must monitor, test and maintain I-Net. Initial: 4 P & 5 G/E channels. Plus, if program minimums met: 60 days after Effective Date: 2 P & 1 G/E channels; By : 1 P & 2 G/E channels; By : 2 P channels. PEG channels on lowest-priced tier (unless in HD). No change to PEG channel locations unless required by Federal law and approved by City. vision must provide/install/ maintain PEG transmission links & equipment. 25 hours of VOD capacity (7 hrs to be less than 9 months old). 1 HD channel (90 days after Effective Date). For : 25 hours of VOD capacity, 20 hours of which to be less than 8 months old, 90 days after Effective Date. HD channel when 10% of 1st & 2nd run programs are in 720p+ 2nd HD channel in Yr.5 if 1st HD channel is filled with HD programming, and more than one SD channel is surrendered. G/E Access Grants (for all vision franchises in New York City): $3,050,000 over franchise term, in equal annual amounts. Cash Grants : Yr.1: $1,000,000 Yr.2: $500,000 Yr.5: $500,000 $922,200 (all may be used during 1st four franchise years) for promos on cable system and/or local print ads. For Public Access: Channel Grants: $1.40/sub/mo. (capped at 175,000 subs in Yr.1, grows to cap of 290,000 subs in Yrs.6-9). $500,000 for promos on cable system during term of franchise. Electronic or print info re activities & programming to new subscribers, and annually to all subs. Prepared by The Buske Group Page 9

10 Borough of Queens, NY Time Warner (Number of subscribers not available) NOTE: RCN and Verizon have separate agreements with Queens s) capacity: 77+ channels. design: active 2-way plant. Free basic designated public buildings and the Public Access center. shall be designed to enable it to be interconnected with other in New York City, to transmit PEG programs. Time Warner permits City to use 10% of subscriber network backbone (up to 6 strands); 2 more strands if backbone has 80+ strands. In lieu of providing more I-Net capacity to that described above, Time Warner shall initially provide $14,393,000 to City for I-Net capital costs, to cover the collective obligation of its NYC franchises. Time Warner to also provide racks and back-up power in its headend for City s I-Net equipment. Time Warner must monitor, test and maintain I-Net. Initial: 4 P & 5 G/E channels. Plus, if program minimums met: 60 days after Effective Date: 2 P & 1 G/E channels; By : 1 P & 2 G/E channels; By : 2 P channels. PEG channels on lowest-priced tier (unless in HD). P channels shall be assigned to locations as configured elsewhere in City, but may be changed as deemed appropriate. Such changes require at least 45 days prior notice and must be extensively advertised. Relocation of G/E channels 74 & 75 require prior approval of City. Locations may be changed if required by law. Time Warner must provide/install/ maintain PEG transmission links & equipment. 25 hours of VOD capacity. 1 HD channel (within 90 days after written notice from City). For : 12 hours of VOD capacity. One HD channel. G/E Access Grants (for all Time Warner franchises in New York City): $6,050,000 over franchise term, in equal annual amounts. Cash Grants : Yr.1: $500,000 Yr.2: $500,000 Yr.5: $500,000 Free Public Access facility space at Time Warner office in Flushing (current value: $400,000 per yr.). If Time Warner relocates, it must provide equivalent space in Queens plus up to $2,000,000 for moving and leasehold improvement expenses. $1,700,000 worth of promo spots on cable system ($1,339,000 of which to occur during 1st three franchise years). For Public Access: Channel Grants, per sub/month: Yrs. 1-2: $0.65; Yrs. 3-5: $0.80; Yrs. 6-9: $1.00. QPTV program listings on channel guide if technically feasible and commercially reasonable. Info re QPTV activities & channels provided to new subs, to all subs annually, and on TW website. Prepared by The Buske Group Page 10

11 Borough of The Bronx, NY vision (Number of subscribers not available) NOTE: Verizon has a separate agreement with the Bronx s) capacity: 77+ channels. design: active 2-way plant. Free basic designated public buildings and the Public Access center. 3 live remote origination sites (designated by operator) connected to master control. shall be designed to enable it to be interconnected with other in New York City, to transmit PEG programs. vision permits City to use 10% of subscriber network backbone (up to 6 strands); 2 more strands if backbone has 80+ strands. In lieu of providing more I-Net capacity to that described above, vision shall initially provide $7,782,000 to City for I-Net capital costs, to cover the collective obligation of its NYC franchises. vision to also provide racks and back-up power in its headend for City s I-Net equipment. vision must monitor, test and maintain I-Net. Initial: 4 P & 5 G/E channels. Plus, if program minimums met: 60 days after Effective Date: 2 P & 1 G/E channels; By : 1 P & 2 G/E channels; By : 2 P channels. PEG channels on lowest-priced tier (unless in HD). No change to PEG channel locations unless required by Federal law and approved by City. vision must provide/install/ maintain PEG transmission links & equipment. 25 hours of VOD capacity (7 hrs to be less than 9 months old). 1 HD channel (90 days after Effective Date). For : 25 hours of VOD capacity, 20 hours of which to be less than 8 months old, 90 days after Effective Date. HD channel when 10% of 1st & 2nd run programs are in 720p+ G/E Access Grants (for all vision franchises in New York City): $3,050,000 over franchise term, in equal annual amounts. Cash Grants : Yr.1: $1,000,000 Yr.2: $500,000 Yr.5: $500,000 $922,200 (all may be used during 1st four franchise years) for promos on cable system and/or local print ads. For Public Access: Channel Grants: $1.40/sub/mo. (capped at 161,000 subs in Yr.1, grows to cap of 265,000 subs in Yrs.6-9). $500,000 for promos on cable system during term of franchise. Electronic or print info re activities & programming to new subscribers, and annually to all subs. Prepared by The Buske Group Page 11

12 Initial: 4 P & 5 G/E channels. Borough of Staten Island, NY Time Warner (Number of subscribers not available) NOTE: Verizon has a separate agreement with Staten Island s) capacity: 77+ channels. design: active 2-way plant. Free basic designated public buildings and the Public Access center. shall be designed to enable it to be interconnected with other in New York City, to transmit PEG programs. Time Warner permits City to use 10% of subscriber network backbone (up to 6 strands); 2 more strands if backbone has 80+ strands. In lieu of providing more I-Net capacity to that described above, Time Warner shall initially provide $14,393,000 to City for I-Net capital costs, to cover the collective obligation of its NYC franchises. Time Warner to also provide racks and back-up power in its headend for City s I-Net equipment. Time Warner must monitor, test and maintain I-Net. Plus, if program minimums met: 60 days after Effective Date: 2 P & 1 G/E channels; By : 1 P & 2 G/E channels; By : 2 P channels. PEG channels on lowest-priced tier (unless in HD). P channels shall be assigned to locations as configured elsewhere in City, but may be changed as deemed appropriate. Such changes require at least 45 days prior notice and must be extensively advertised. Relocation of G/E channels 74 & 75 require prior approval of City. Locations may be changed if required by law. Time Warner must provide/install/ maintain PEG transmission links & equipment. 25 hours of VOD capacity. 1 HD channel (within 90 days after written notice from City). For : 25 hours of VOD capacity. Up to two HD channels, upon request of CTV. G/E Access Grants (for all Time Warner franchises in New York City): $6,050,000 over franchise term, in equal annual amounts. Cash Grants : Yr.1: $800,000 Yr.2: $200,000 facility space at Time Warner s Staten Island office for CTV for $5,835 per month for all services, including internet. If Time Warner relocates, it must provide equivalent space for CTV at no cost and expense. $1,700,000 worth of promo spots on cable system ($1,339,000 of which to occur during 1st three franchise years). For Public Access: Channel Grants, per sub/month: Yrs. 1-5: $1.00; Yr. 6: $1.05; Yr. 7: $1.10; Yr. 8: $1.15; Yr. 9: $1.20 Yrs. 10+: $1.25. CTV program listings on channel guide if technically feasible and commercially reasonable. Info re CTV activities & channels provided to new subs, to all subs annually, and on TW website. Prepared by The Buske Group Page 12