CAN TV Fights for Promised Funds

By Kari Lydersen

With programming ranging from the popular Chic-a-GoGo dance show to live call-in shows hosted by community groups to the broadcasting of radical political rallies to documentaries about topics like deindustrialization and gentrification, Chicago's public access station CAN TV can only be described as a true voice of democracy. Now CAN TV is embroiled in a battle to secure funding from cable company RCN.

In a world of increasing media conglomeration, CAN TV's five channels are open to everyone from Christian groups to Central America solidarity committees to Black nationalist organizations and labor unions. Currently, CAN TV is involved in a critical struggle to secure a huge portion of its funding from the cable company RCN.

As is the case with public access in some other major cities, in Chicago CAN TV gets the bulk of its funding from large commercial cable broadcasters. When the city council approved a major transfer of concessions from another company to RCN last spring, part of the deal was that RCN would continue to fund CAN TV.

In January, RCN paid $294,000 based on "area one" in which it had already been operating, but the company has still failed to pay a promised $645,000 based on city areas two through four, which it acquired the right to build in. AT&T is now paying CAN TV less in areas two through four since it is sharing the burden with RCN.

"Really from the very beginning CAN TV has tried to sit down and have some meaningful discussions with RCN," said CAN TV executive director Barbara Popovic. "But we were essentially being stonewalled, time was passing and everything seemed to be conditioned on something else, so we really began to lose patience. We were spending at the 2001 budget levels to keep up our services without any good faith discussions going on with the company about getting these payments."

At a hearing in the City Council's Finance Committee on April 29, several aldermen spoke in favor of CAN TV and urged the Cable Commission, in charge of regulating the industry, to force RCN to pay up.

Joyce Gallagher of the Cable Commission noted that RCN claimed to be in deep financial difficulties as a result of the economic downturn, and recently laid off 300 employees. "I've seen RCN's finances and they don't look good," she said.

CAN TV spokespeople have noted that financial difficulties aside, the $645,000, which is about one quarter of CAN TV's budget, would still be a drop in the bucket to RCN, which counts computer giant Paul Allen as one of its investors. RCN has argued that with about $3 million in reserve, CAN TV can survive without the promised funds. But CAN TV supporters note that the yearly budget is $2.7 million, and the reserve is a necessary nest egg; and that RCN's reneging on its promise sets a very dangerous precedent for other cable companies to do the same now and in the future.

"I don't think CAN TV should be penalized for managing their money well," said 27th Ward Alderman Walter Burnett Jr. "And I think we set a bad precedent if we allow companies not to stick with the promises they've made. When people start to cry about the economy, they always hit up the ones that are hurt the most. But I think it's very important we continue to see [CAN TV has] a valuable role in the city of Chicago. I can't get on channel 2, 5 or 7 and talk about a park being built in the 27th ward."

RCN has offered to pay CAN TV about one percent of the promised amount, around $6,000. Alderman Bernard Stone (50th ward), who convened the hearings on the issue, called this offer "insulting." He said, "I find RCN's actions despicable. Cable access depends on these payments. If RCN ignores this city, we don't want them in the city."

Gallagher noted that the commission can pressure RCN to pay by preventing them from building their franchises. "Our ultimate hammer is revoking their franchises," she said.

"We will consider any action available to us, including revoking their agreements," added Cable Commission corporate counsel Ben Gibson.

Popovic said that she was happy with the city council hearing. "I was happy to see that the aldermen are really taking this seriously and they're going to make sure the right questions are asked and the company is held to its promises," she said.

"Everyone's hurt by the economy, and I think people don't buy the idea that RCN should get a pass on their promises just because of the economy. If we lose our job we still have to pay the mortgage, we're not going to get a pass from the bank. As one of the aldermen said, it's like they're asking a non-profit to subsidize a for-profit corporation."


Kari Lydersen is Associate Editor of StreetWise newspaper and writes for Punk Planet , Clamor magazine, In These Times and The Washington Post.
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