CC MINUTES 12171985 - Laserfiche WebLink

Home Browse Search

-5- represented only 23% of possible subscribers and, Mr. Kaeding indicated, that number had at one time been as h.igh as 27%, with 4% attrition since cable was first • sold in the community. The Cable Commissioner explored reasons he perceived the cable company was not making money in addition to a half-hearted membership drive. He said, because staff is not being paid well enough, it had. been hard to retain good people in management. Plant maintenance had become a problem, Mr. Kaeding. indicated, with weather and general- failure of sophisticated pieces of equipment. However, with the hiring of a new manager with some innovative ideas, the Commissioner indicated the cable company now hoped to undertake a more successful marketing effort; which had not happened yet, since only 13 new City subscribers had come on line since the new marketing effort was begun. Although Group W is for sale, Mr. Kaeding indicated he would not anticipate a sale very soon. He also said, since the local control of cable services had been preempted by the federal government, in spite of a concerted effort by the cities, the ten northern suburbs really had no choice except to passively permit the rate increase which many believed was unwarranted because of Group W's performance. Without a strong rate control , the Commissioner told the Council , he would anticipate the rates would continue to rise while penetration falls because he said he perceived it would be,:mueh less- expensive for the cable company to service a smaller, more lucrative subscriber base, than a larger .group of subscribers who are only adding two or three access lines to their outlets. The end result Mr.. Kaeding indicated he would expect, would be that "cable would become a toy of the affluent because of the shortsightedness of federal regulation changes" and public access. would also become that much harder to get for communities. • Mayor Sundland indicated he agreed with Mr. Kaeding 's assessment that as the rates increased, the average subscriber would drop off, leaving cable only for those people who can afford to have it in their. homes without justifying their purchase if they don't watch it all the time. Councilmember Ranallo referred to copies of letters he had gotten from residents, which had also been sent to the cable company, complaining about the weather channel and protesting Group W's unwillingness to include the Eternal Word Television Net- work in St. Anthony programming, even though they do provide that network for Columbia Heights subscribers. Mr. Kaeding said the Commissioners had been unable to get any satisfactory answer about the discrepancy from the cable representative but suspected the reason was that because there is no revenue raising potential in religious programming, the cable company is currently only interested in airing programs which would permit them to share in advertising revenues . And, he added, once a channel is provided, it is very difficult to eliminate later. The Com- missioner agreed the weather channel was not what it had been initially, but said the commissioners had been unwilling to permit the cable company to use one of the public access channels for this program, perceiving Group W had plenty of its own channels on which to provide the service demanded by the market. The cable company would really like to get rid of the universal service, which few realize is still available, according to Mr. Kaeding, who indicated the scenario he expected to be followed would be a continuation of higher rates for fewer sub- scribers to the point where Group W could reduce its overhead costs and collect revenues large enough to maintain business if the system is not sold. However,:'he • added, he would no longer anticipate the type of community service and general-access people were hoping would be provided, would be possible under such a system.