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SEC Filings

S-4/A
RENAISSANCE MEDIA GROUP LLC filed this Form S-4/A on 09/04/1998
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and customer satisfaction and to tailor its local service offerings to the
particular community. Management believes that its focus on system operations
and customer service will increase subscriber penetration, revenues and cash
flow margins.
 
  The Company will aggressively market and promote its cable television
services with the objective of adding and retaining customers and increasing
subscriber revenue. The Company will actively market its basic and premium
program packages through a number of coordinated marketing techniques,
including: (i) door-to-door sales and subscriber audit programs; (ii) direct
mail for basic and upgrade acquisition campaigns; (iii) monthly subscriber
statement inserts; (iv) local newspaper and broadcast/radio advertising where
population densities are sufficient to provide a reasonable cost per sale; and
(v) cross-channel promotion of new services and pay-per-view movies and
events.
 
FRANCHISES
 
  Cable television companies operate under non-exclusive franchises granted by
local authorities which are subject to renewal and renegotiation from time to
time. These franchises typically contain many conditions, including: (i) time
limitations on commencement and completion of construction; (ii) conditions of
service including customer response requests, technical standards, compliance
with FCC regulations and the provision of free service to schools and certain
other public institutions; and (iii) the maintenance of insurance and
indemnity bonds. Certain provisions of local franchises are subject to federal
regulation under the 1984 Cable Act, the 1992 Cable Act and the 1996 Telecom
Act.
 
  As of March 31, 1998, the Systems held 46 franchises in the aggregate. These
franchises, all of which are non-exclusive, generally provide for the payment
of fees to the issuing authority. The Company's franchise fees typically range
from 3.0% to 5.0% of "revenue" (as defined in each franchise agreement). For
the past three years, franchise fee payments made by the Systems have averaged
approximately 3.7% of total gross System revenue. Franchise fees are generally
passed directly through to the customers on their monthly bills. General
business or utility taxes may also be imposed in various jurisdictions. As
amended by the 1996 Telecom Act, the 1984 Cable Act prohibits franchising
authorities from imposing franchise fees in excess of 5% of gross revenue
derived from the operation of a cable television system to provide cable
services and also permits the cable operator to seek renegotiation and
modification of franchise requirements if warranted by changed circumstances.
Most of the Company's franchises can be terminated prior to their stated
expirations for uncured breaches of material provisions. See "Legislation and
Regulation."
 
  The following table sets forth for the Systems the number of franchises by
year of franchise expiration and the number of basic subscribers and
percentage of the Systems' basic subscribers as of December 31, 1997:
 

<TABLE>
<CAPTION>
                                                                      PERCENTAGE
                                                           NUMBER OF  OF SYSTEMS'
                              NUMBER OF   PERCENTAGE OF      BASIC       BASIC
YEAR OF FRANCHISE EXPIRATION  FRANCHISES TOTAL FRANCHISES SUBSCRIBERS SUBSCRIBERS
- ----------------------------  ---------- ---------------- ----------- -----------
<S>                           <C>        <C>              <C>         <C>
Prior to 2000...............       1            2.2%          3,803        3.0%
2000--2004..................      15           32.6%         52,745       41.7
2005--2008..................      18           39.1%         44,152       34.9
2009 and after..............      12           26.1%         25,858       20.4
                                 ---          -----         -------      -----
  Total.....................      46          100.0%        126,558      100.0%
                                 ===          =====         =======      =====
</TABLE>

 
  The Company believes that the Systems have good relationships with their
respective franchising authorities. However, renewals or extensions of
franchises may result in more rigorous franchise requirements.
 
  The 1984 Cable Act provides for, among other things, procedural and
substantive safeguards for cable operators and creates an orderly franchise
renewal process in which renewal of franchise licenses issued by governmental
authorities cannot be unreasonably withheld, or, if renewal is withheld and
the franchise authority
 
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