Streaming services have grown tremendously since the start of the pandemic in 2020, and while that’s good news for viewers who appreciate their options, it’s not such good news for local government. Cable companies have seen a significant drop in revenue during the past couple of years and that’s had a corresponding impact on franchise fees collected by cities. After peaking at $21,725 in 2017, the annual franchise fee collected by the City of Scott City has began to decline over the next two years before plunging to just $5,359 in 2020. This past year, it slipped to $3,985. Municipalities across the state are experiencing a similar loss of revenue, which has prompted them to look at some means by which they can tap into the revenue shift toward streaming services. The loss of about $13,000 in franchise fees paid to Scott City means that revenue has to be generated elsewhere (e.g., about one-half mill in property taxes) or the budget will have to be cut by a similar amount. “We have no idea how much revenue the streaming services are generating and what the potential could be for a franchise fee if that were to be allowed (by the state),” says City Administrator Brad Pendergast.
Source: Scott County Record
