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SEC Filings

RENAISSANCE MEDIA GROUP LLC filed this Form 10-K405 on 03/31/1999
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provide high-quality locally focused service to each community served. The
Company believes that a system-by-system, decentralized approach to operations
is required as each area served has distinct characteristics such as
demographics, economic diversity and geographic setting. The Company's local
management strives to become an integral part of the communities served. These
efforts will enable the Company periodically to adjust its local service
offerings to meet the needs of a particular community.
   In the communities it serves, the Company believes that many customers
prefer to personally visit the local office to pay their bills or ask
questions about their service. As a result, the Company maintains conveniently
accessible local offices in many of its service areas. The Systems' local
staff, typically native to the areas they serve, are familiar with the
community's customer base. The Company believes that this combination of local
offices and local staffing allow the Company to provide a high level of
customer service. Additionally, the Company believes familiarity with its
communities allow it to customize its menu of services and respective pricing
to provide its customers with products that are both diverse and affordable.
   The Company operates under a quality assurance program which stresses
responsibility and reliability among employees at all levels, and treats each
customer's concerns individually. To monitor the performance of its Systems
and the quality of its customer service, the Company measures eleven criteria
on a weekly, and in some cases, daily basis. These criteria are: service call
response times, service call-to-total customers ratio, installation response
time, repeat service calls, new-customer service calls, average outage
duration, picture quality, occurrence of all-telephone-trunks busy per
measurement period, telephone answer rate and response time to customer
correspondence. The Company also uses market research tools to gauge its
performance 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 aggressively markets and promotes its cable television services
with the objective of adding and retaining customers and increasing subscriber
revenue. The Company actively markets 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.
   Cable television companies operate under non-exclusive franchises granted
by local authorities which are subject to renewal and renegotiations 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 December 31, 1998, the Systems held 47 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 3.8% 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
renegotiations and modification of franchise requirements if warranted by