INDIANA — The slow fade of traditional cable TV is beginning to hit city halls, where franchise fees once provided a steady, predictable stream of local revenue. As households in communities like Decatur shift to streaming platforms such as YouTube TV, the financial model that supported public-access channels and municipal budgets for decades is starting to unravel.
For years, cable companies like Comcast and Mediacom paid local governments a franchise fee — typically up to 5% of gross revenue — in exchange for the right to use public rights‑of‑way. Those agreements also required operators to carry public‑access, educational and government (PEG) channels, giving residents a direct window into local meetings and community programming.
But as cable subscriptions decline, so do the fees.
City officials across Indiana say the trend is accelerating. Households that once paid for cable now subscribe to streaming services that operate outside the franchise system. YouTube TV, which has become the dominant provider in many small and mid‑sized markets, does not pay local franchise fees and is not required to carry PEG channels.
“It’s a structural shift, not a temporary dip,” one municipal administrator said. “Every time a household cuts the cord, that’s revenue we don’t get back.”
The impact varies by community. In some cities, franchise fees helped fund general operations. In others, they supported communications departments, equipment upgrades or the staffing needed to broadcast council meetings. PEG channels — once a staple of local transparency — now face an uncertain future as their guaranteed placement on cable lineups disappears.
Local governments have few tools to respond. Federal law treats streaming platforms as information services rather than cable operators, placing them outside the regulatory framework that created franchise fees in the first place. Several states have explored legislation to impose similar fees on streaming providers, but the efforts have faced legal challenges and industry opposition.
In Indiana, where YouTube TV has become a go‑to option for residents seeking live television without traditional cable, officials say the shift is already visible in budget lines. Franchise revenue has flattened or declined even as demand for digital communication — livestreams, meeting archives, and online updates — continues to grow.
Some communities are exploring alternatives, including partnerships with local media outlets, expanded use of social platforms, or direct city‑run streaming channels. Others are bracing for the loss.
What’s clear, officials say, is that the cable‑era model that funded local access for a generation is unlikely to return.
“This isn’t just about TV,” one city clerk said. “It’s about how local government stays visible and connected when the old systems fall away.”