Exploring the Policy Value of Cable Franchise and PEG Fees

Subscribers to cable television typically pay Franchise and Public-Educational-Governmental (PEG) Fees. Ostensibly, these monthly fees exist to compensate communities for the private use of public goods and to bolster the marketplace of ideas. Little empirical research, however, assesses the utility of these fees as policy mechanisms. In this article, we track the existence and dispensation of the fees in the 20 largest American cities by examining their recent annual budgets. This provides a foundation to consider the fees' contributions in the context of ongoing legal challenges to their existence and the increase of digital television services beyond their purview.