Merrimack TV warns franchise fees falling, asks for larger equipment allocation and explores sponsorships

Nick, who leads the town’s media division, told the council the department is effectively self-supporting through cable-franchise fees but those revenues are declining as residents cut the cord. He said Xfinity subscribers fell from about 7,300 in 2021 to about 4,500 in November 2025, while downloads of the Merrimack TV app increased to roughly 4,322.

The media proposal requests a step-up in capital equipment ($25,000 currently to $75,000 proposed) to replace the Cablecast head-end equipment that runs the division’s video server, scheduling hardware and streaming infrastructure. Nick said the division had to spread a planned upgrade over two years because the town entered a default budget last year.

To reduce future pressure on general funds, Nick described a possible underwriting/sponsorship model — citing Bedford’s program that raised roughly $30,000 annually from event and sports underwriting — and said Merrimack could target multiple businesses with non-competing underwriting agreements.

Councilors asked for clarity about how much of the media division’s operations affect the tax rate (the franchise‑fee fund is currently self-supporting) and whether sponsorship revenue could be reliably sustained. Nick said sports and community events drive most streaming audiences and that any underwriting effort would require staffing or contract support to sell and manage sponsors.

Next steps: the council will review the equipment proposal during deliberations and asked staff to provide additional detail about timing, alternatives, and projected operating shortfalls if franchise fees continue to decline.