Can We Keep Cable?

I purchase the cable service from the city every month and I am happy with it, but anyone who has had cable service from other companies recently knows that our system isn't up to basic standards. Our city cable system has fallen behind technologically. Part of the trouble is that the system lacks the capacity to expand our offerings both in number of channels and technological enhancements such as High Definition and On Demand. Fixing this would require a significant investment in hardware and infrastructure. Additionally, the rebroadcast fees associated with adding more channels would make it difficult or impossible to maintain the current charges for the service.

As I understand it, the city cable system was created to fill a need for citizens prior to the availability of other options such as Dish Network or DirectTV. Currently we are losing customers each month these other options. As we lose customers, the financial viability of the system begins to unravel. The broadband internet system, which faces capacity and technology challenges of its own, has been used to subsidize the loss of revenue from the cable system. It has been made clear to the council through the budget process that this band-aid solution will not be sustainable. A decision about the future of our cable system needs to be made in the near future.

Another concern is the status of channel 23. It has been celebrated as an important means of communication. It is used to broadcast public announcements as well as public meetings of committees and the city council. As fewer and fewer residents opt for city cable, the effectiveness of channel 23 diminishes.

Should the city be in the cable business? If so, how should we respond to the changing marketplace when our market share degrades monthly? If not, how should we plan for the loss of revenue from our existing system? Are you willing to give up channel 23 if we get out of the cable business? Is it worth subsidizing a diminished system to maintain channel 23? Would you vote for an increase in the cable charges if it meant adding more channels and enhancements? What alternatives do you see for the city in facing this challenge?