What Does Philadelphia Need From Our Comcast Cable Franchise?

The Comcast Center under construction before its opening in June 2008. The outline next to it represents the new tower Comcast plans to build in Center City, Philadelphia beginning in Summer 2014.

A Guide to Philadelphias Initial Comcast Cable Franchise Survey and Comment Form Media Mobilizing Project, February 2014

by

http://www.mediamobilizing.org, info@mediamobilizing.org, (215) 821-9632

WHAT IS THE CABLE FR ANCHISE RENEW AL PROC ESS AND WHY DOES IT M ATTER TO OUR COMMUNITIES? Philadelphia has a rare opportunity to speak out for the resources we need from corporations like Comcast, if these companies want the right to deliver services in Philadelphia and to profit off our communities. While Philly schools are broke, business is booming for Comcast, partly because of a franchise agreement one that is highly favorable for Comcast which the company signed with the city. While Verizon builds out cable service in the city, Comcast is currently the City of Philadelphias major cable provider; holding a franchise to sell us cable service in all 4 of the Citys franchise areas. Comcast signs special contracts with the City, called franchise agreements, in order to be allowed to provide cable service in Philadelphia. These franchise agreements give Comcast access to the public rights-of-way under our streets where they lay cables, for example that they need to provide cable television in our homes. In exchange for access to our public rights of way, the City of Philadelphia negotiates a deal with Comcast to provide money into our public coffers, as well as certain community benefits, that stay in place for fifteen years. As our Citys franchise agreements with Comcast expire in 2015, the City is engaging in a public needs assessment process to see what Philadelphians want to negotiate for in this franchise. This public comment period and survey will likely be followed by up to three public hearings and more opportunities to be heard. Community input has begun with a public survey and comment form hosted at the Citys Office of Innovation and Technology site, for any Philly residents to fill out. Both the public survey and the short comment form are here: www.phila.gov/cablefranchises/Pages/default.aspx Philadelphia stands as a canary in the coalmine for dozens of American cities struggling to survive in the wake of the economic crisis. In 2013, Philadelphia was the poorest of Americas ten largest cities1. The percentage of city workers living in poverty has

Tina Kluetmeier, a mother of two in Philadelphia, protested corporate tax breaks at the Comcast Center. (Photo by Kimberly Paynter, WHYY, taken from http://thenotebook.org/blog/136270/figh t-philly-takes-comcast-philly-schoolfunding-bologna-sandwiches

Poverty dips in city, but need for food stamps rises. Philadelphia Inquirer, September 20th, 2013. http://articles.philly.com/2013-09-20/news/42222047_1_poverty-rate-poverty-dips-food-stamps
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doubled since 20072. 24 public schools were closed, and thousands of workers have been laid off3. Almost 1/3 of Philly residents, primarily the poorest4 are offline, with little ability to advocate or alleviate the crises that bloom when resources disappear. The City of Philadelphia and Comcast are about to begin the negotiation process to renew the franchise agreement that expires in 2015. Philadelphia is the fourth biggest television market in the nation. 2.1 million people in the Philadelphia area subscribe to cable, relying on Comcast for basic news and information, and nationally, Comcast internet subscriptions rose 64% over the past 6 years5. Comcast profits were $1.91 billion in the last quarter of 20136, with an over 5% increase in cable subscriptions alone in the last quarter of 2013. Amidst skyrocketing profits, Comcast fights Philadelphians basic needs leading and paying the largest amount in lobbying costs to oppose a campaign to guarantee earned sick days for Philadelphians 7, and paying little in taxes to the city that gives it so much8 - a rate of 3.4%, when the average in Pennsylvania is 9.99%. Comcasts outsized political power in Philadelphia impacts us daily with their senior executives encouraging the city to dismantle the school district9, and contributing millions to both parties in political contributions10. Public engagement in the franchise agreement process will help hold Comcast accountable to provide much needed resources for a city in need. Your voices can help the city ask for far more for our communications and human rights, if Comcast is to profit more from our communities. SPEAK OUT: WHAT DO WE NEED FR OM PHILADELPHIAS CA BLE FRANCHISE? In the last cable franchise negotiation with Comcast, Philadelphia secured: 1. Funds for community access television, PhillyCAM, which supports community members and non-profits with access to training, equipment, television studios and cable time slots to air their own local content.
Chris Fillipone trains new filmmakers on the storyboarding process. Community members were able to build and grow our public access television station, PhillyCAM, by organizing around the public franchise process. What else could we win in our communities if we tell the City what we need from Comcast? (Photo by Media Mobilizing Project)

City workers in poverty double under Mayor Nutter. Philadelphia Public Record, May 23rd, 2013. http://www.phillyrecord.com/2013/05/city-workers-in-poverty-double-under-mayor-nutter/ 3 Saying goodbye to 24 Philadelphia schools. Philadelphia Public School Notebook. October 2013. http://thenotebook.org/october-2013/136420/saying-goodbye-24-philadelphia-schools 4 Ten facts about internet access in Philadelphia, November12th, 2013, http://www.pewtrusts.org/our_work_report_detail_wide.aspx?id=85899518833 5 After 50 years, Comcast still looks forward.Philadelphia Inquirer, November 11th, 2013. http://articles.philly.com/2013-11-11/news/43889689_1_comcast-corp-other-cable-tv-companies-roberts 6 Comcast halts subscriber losses; NBCUniversal profit soars. Los Angeles Times, January 28th, 2014. http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-comcast-halts-subscriber-losses-nbcuniversalprofit-soars-20140128,0,557409.story #axzz2rtcKqpDh 7 Advocates: Comcast is trying to block Phillys paid sick leave law. Metro Philadelphia, March 12th, 2013. http://www.metro.us/philadelphia/news/2013/03/12/advocates-comcast-is-trying-to-block-phillys-paid-sickleave-law/#sthash.1vv1RUjS.dpuf 8 Political power and consumer pain in Comcasts Philadelphia. City Paper, March 27th, 2013. http://www.citypaper.net/article.php?Polsitical-Power-and-Consumer-Pain-in-Comcast-s-Philadelphia-12036 9 Pa. budget would help Phila. Schools, Philadelphia Inquirer, July 8th, 2013. http://articles.philly.com/201307-08/news/40422968_1_state-budget-city-schools-state-funds 10 The ten companies making the biggest political donations, July 5th, 2012. http://finance.yahoo.com/news/the-ten-companies-making-the-biggest-political-donations.html
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2. A yearly disbursement of 5% of cable profits to Philadelphias general fund, although there is little public input over how its spent . Both of these things are vital, but Comcast owes Philadelphia more. We have a chance to share what we want out of the next negotiation now. The more clear, respectful, well-informed opinions the City can collect the more likely officials will be able to ask Comcast for the resources our communities need to thrive. 1) IF YOU ARE A CUSTOMER OF COMCAST, TELL THEM WHAT YOU THINK OF THE SERVICE THEY PROVIDE. In the survey itself, the City asks multiple choice and open-ended questions about your experience with Comcast products and services. Your feedback here helps keep them accountable in providing increasingly affordable, flexible service you can use. If you are not a customer of Comcast, tell them why you choose to not subscribe. Issues of cost, language accessibility, and Comcasts lack of accountability to pay their fair share are all fair game to describe. 2) USE THE FREE WRITING BOXES IN THE SURVEY, or JUST FILL OUT THE SIMPLE COMMENT FORM, to TELL YOUR STORY AS TO WHY YOU THINK WE NEED MORE FROM COMCAST. The public comment form and comment boxes in the survey offer space for your personal reflections and expressions on what Comcast could do for our city. If youre concerned that Comcasts resources are not being fairly invested in Philadelphia , consider writing something in the appropriate box. 3) SOME TOPICS TO CONSIDER: a. Support Local Access Channels The survey asks a series of questions about local access channels and programming, which Comcast is obligated to fund as part of its franchise agreement. These are vital community resources that Comcast has fought and underfunded. PhillyCAM, the Citys public access TV station, operates a community access media center that unites people to make and share media for creative expression, democratic values, and civic participation. Comcast should not discriminate against local Access Channels with respect to the functionality and signal quality of those channels as compared to those of the local broadcast digital format channels carried on the cable system. This includes transmission of local access channels in HD and making public access content available On Demand. b. Expand Affordable Internet Access Almost 1/3 of Philly residents are offline, primarily the poorest. Comcast could create a fund to provide more free and affordable internet access for poor communities and underfunded schools. That could support students to learn and workers to seek jobs.

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Pay Your Fair Share - Comcasts top executive salaries alone could pay off the school districts three hundred million dollar budget deficit in a few years11. The company earned over $64 billion in revenues in 201312, while students suffer, Comcast was just awarded forty million in city and state tax payer dollars to build a second record-setting skyscraper in Center City, Philadelphia. Instead of draining our resources, Comcast could use more of its profits to support services for the people of Philadelphia in need. Respect worker rights. Comcast paid over $100,000 in lobbying fees to oppose a City Council bill that would have expanded access to paid sick days to hundreds of thousands of us and our neighbors 13. The ratio for CEO pay to average employee pay at Comcast is 370:1,14 and few Comcast workers have the benefits and protections afforded by membership in a union. Comcast should state its support for its workers, and all workers, rights to form unions, and support efforts to build dignity for workers. Dont pass on the fee to us. Comcast subscribers pay the franchise fee in tiny installments every month as a part of their cable bill. If Comcast agrees to pay its fair share, these extra/supplemental funds should come from their record profits, not from charging already struggling consumers more, or taking resources from important Philly services like public access TV.

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MAKE YOUR VOICE HEARD AND BUILD THE MOVEMENT Please take some time to complete the survey and fill out the short comment form. The more people express their voices, the louder well be heard. Both the public survey and the short comment form are here. The survey is on top. Scroll down for the comment form. www.phila.gov/cablefranchises/Pages/default.aspx After you complete the form and survey please share this guide with at least five Philadelphians. You can also get a print copy of the survey at your local Free Library of Philadelphia branch, and at selected KEYSPOT Public Computer Centers citywide. The City is hoping to collect as many survey responses and comments as possible by February 7th so act fast - though it is likely they will continue to collect comments throughout the community feedback process. This is the start of an engagement period where we can shape policy, protect and expand our communitys resources, and hold Comcast accountable. Make your voice heard! For more information, email info@mediamobilizing.org, visit http://www.mediamobilizing.org or call us at (215) 821-9632, and keep checking http://www.phila.gov/cablefranchises/ for updates.

Audra Traynham and Miguel Esteban Andrade prepare to host local public affairs program MMPTV on public access station PhillyCAM.

Comcast Execs 2012 Earnings Revealed, Philadelphia Business Journal, April 11th, 2013. http://www.bizjournals.com/philadelphia/news/2013/04/11/comcast-execs-2012-earnings-revealed.html 12 Comcast 2013 Financial Report, http://www.cmcsa.com/releasedetail.cfm?ReleaseID=821438 13 Advocates: Comcast Is Trying To Block Phillys Paid Sick Leave Law, Metro Philadelphia, March 12th, 2013. metro.us/philadelphia/news/2013/03/12/advocates-comcast-is-trying-to-block-phillys-paid-sick-leavelaw/ 14 13 CEOs Who Get Paid Shockingly More Than Their Employees, Business Insider, March 29th, 2013. http://www.businessinsider.com/ceos-who-get-paid-much-more-than-workers-2013-3?op=1
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