Communities face funding crisis as cable subscriptions plummet

In a recent government meeting, officials discussed the significant decline in cable television subscriptions and its impact on local franchise fee revenues. Communities across New Hampshire, including Nashua, Bedford, and Portsmouth, are experiencing similar challenges as residents increasingly turn to streaming services like Hulu and Netflix, leading to a notable drop in traditional cable subscribers.

In Merrimack, the number of cable subscribers has plummeted from nearly 8,000 to just over 5,300, raising concerns about the sustainability of funding for local media services. The town's franchise fee revenues, which peaked at nearly $400,000 in 2021-2022, have since declined by approximately 7%, with projections estimating revenues to fall to around $368,000 for the 2023-2024 fiscal year.

Officials presented a nine-year financial forecast indicating that if current trends continue, the town could deplete its fund balance by 2027-2028, necessitating a $32,000 subsidy for the media budget. This budget supports local programming, including sports broadcasts, which are particularly affected by the revenue decline.

To address these financial challenges, the meeting introduced the concept of underwriting for sports broadcasts, a strategy already being explored by neighboring Bedford. This approach would involve local businesses paying a fee to sponsor broadcasts, potentially generating significant revenue for community media centers. Bedford is set to launch its underwriting program soon, and Merrimack officials are considering adopting similar measures by 2025-2026.

As the landscape of media consumption continues to evolve, local governments are seeking innovative solutions to maintain funding for community programming and adapt to the changing preferences of their residents.