By Susan Gonsalves, Contributing Writer
Westborough – The Board of Selectmen recently put its support behind state legislation in both the House and the Senate to impose a five percent fee on digital streaming providers who are using rights of ways in Massachusetts communities.
Streaming fees mirror status quo for cable providers
Westborough TV General Manager Karen Henderson explained the move as being in line with what cable companies have been doing for years. Verizon and Charter, for example, both have franchise agreements in town that allow them to use rights of way to offer cable services.
Under a typical agreement, a cable company gives a part of its revenue, based on the number of subscribers, to local access cable stations. Westborough TV, a non-profit, runs programming with that money.
Streaming providers, in comparison to their cable counterparts, are currently paying nothing.
If the bill passes, that would change as revenues would split between the state, local access services like Westborough TV and the Town of Westborough itself.
Westborough TV needs more money as revenue falters, duties expand
This push for a new revenue stream comes during an anxious time for local access providers. Viewership is shifting away from cable to streaming, Henderson noted during a Selectmen meeting, this month. That is decreasing the proportional payouts Westborough TV receives from its cable contracts.
“Every time someone cuts the cord, a little piece of me dies inside,” Henderson said.
Last year, Westborough TV saw a six percent decline in revenues. That’s even as COVID-19 increased the demand for work from station staff.
Steve Hart, chairman of the Westborough TV Board of Directors said that, in 2019, his staff covered 102 government programs. In 2020, that number jumped to 243.
“Folks have trusted us to deliver and I think that’s a really important message we have to keep in mind,” Hart said. “…We’re part of the fabric and we want to continue to be part of the fabric.”
With all that in mind, Henderson noted that lost funding has to be made up, somewhere, for operations to carry on.
Equipment upgrades demand further investment
Outside of increased burdens, Hart noted that technology is rapidly advancing, forcing Westborough TV to invest in its assets.
Although they are able to continue producing current content, they will have to keep up with technological changes and fund them in the future.
Selectmen sign on behind state legislators
Henderson noted that local legislators support these bills to put rates on streaming providers. The Board of Selectmen’s endorsement, she said, would show those legislators they have constituents behind them.
Selectmen enthusiastically, indeed, offered that endorsement.
“It seems to be a matter of fairness,” said Selectman Sean Keogh during a discussion, likening the situation to “back in the day when you didn’t pay tax from Amazon but did when you went to the mall.”
“It makes complete sense,” for streaming providers to pay for use of rights of way, he said.