Hadley negotiating new 10-year cable contract

Hadley Town Hall 

Hadley Town Hall  STAFF FILE PHOTO

By SCOTT MERZBACH

Staff Writer

Published: 03-04-2024 11:02 AM

HADLEY — Hadley Media could see a small boost in revenue from a new 10-year contract with cable and internet provider Charter Spectrum, though there is uncertainty about the reliability of this funding source as people continue to choose streaming options for their television viewing.

The Select Board on Wednesday will hold a hybrid public hearing on the new license it could sign with Spectrum Northeast LLC, doing business as Charter Communications. The meeting starts at 6 p.m. at the Hadley Senior Center.

The negotiated contract, which would replace one that expires March 18, includes cable and internet for subscribers and the franchise fees associated with the public, educational and governmental access run by Hadley Media. The fees, though, are only collected from cable revenue, not internet.

In advance of the renewal, a survey last year was compiled to learn how Charter Spectrum is doing, with both subscribers and those who no longer use it offering input.

Hadley Media Director Alexander LaMarche told the Finance Committee at a recent meeting that Charter Spectrum is no longer providing public access stations capital grants, unlike communities that contract with Comcast, but will continue to provide a percentage of the total revenue as required by law, going up to the maximum 5%. It’s uncertain if that money will be enough for Hadley Media to be able to keep up with equipment in an industry where technology is changing fast, LaMarche said.

The increase to the 5% fee on total revenue is pending agreement on the license renewal, which LaMarche said he will recommend, even though there are challenges facing the public access channel for the next decade or two.

LaMarche said a major concern is the number of subscribers is falling and revenue is eventually going to decline.

The 1,627 subscribers in 2014 has fallen to about 1,151 this year, but even so the $61,097 in revenue 10 years ago is projected to go up to $75,199 this year, in part due to the price people are paying for cable packages rising.

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“Because of the price hike, we did get a little bit extra money in 2023, and we’ll probably have another jump in 2024, only because we’re getting a higher percentage, but I would not count on that as a trend,” LaMarche said.

There are bills working their way through the Legislature, including an act to modernize funding for community media programming, that could benefit Hadley through assessing a fee to streaming services, LaMarche said.

LaMarche also is talking to town officials about other means of support, from building in funding through property taxes or setting up a Friends of Hadley Media organization.

LaMarche noted that more people than ever are engaged in Hadley Media content on YouTube and Facebook, with broadcast and recording of sports at Hopkins Academy and community events, like the Memorial Day parade, being popular. People also tune in regularly to municipal meetings.

Charter Spectrum price hikes will continue to affect whether people subscribe, and each time the rates rise, numbers might go down. “When prices go up, people try to look for alternative options," LaMarche said.

That includes cord-cutting. “We're still experiencing that," LaMarche said.

It also includes people scrapping internet service, or getting internet from other sources.

Other challenges exist, as well, such as a subscription service Charter and Comcast are exploring that might not offer the public, educational and governmental channels.

Scott Merzbach can be reached at smerzbach@gazettenet.com.