The franchise fees in many markets are based on gross revenue. 5% is a fairly standard percentage charged by municipalities to cable companies for right of way access, etc. Not sure if I would call this a profit sharing plan, but it's not too much of a stretch. Today with local agreements somewhat going by the wayside for statewide franchising, I'm not sure how the fees are charged.
Phil On 12/19/10 5:16 PM, "William Allen Simpson" <william.allen.simp...@gmail.com> wrote: >On 12/17/10 12:08 PM, Dave Temkin wrote: >> George Bonser wrote: >>> The municipality charges the cable company per HBO subscriber? >>> >>> >> The municipality gets a cut of that in a profit sharing agreement. The >>point was, everyone gets their tax or toll along the way. >> >Dave, perhaps you would be kind enough to tell us where you operate a >network and what municipality is able to charge "the cable company" >based on a "profit sharing agreement". > >That would be against the law in Michigan. And I've never heard of any >cable company revealing its profits on a per municipality basis.... >
