Comcast Corp. will pay $400,000 in past-due franchise fees on network launch fees and ad revenue to end a dispute with the city of Los Angeles.
City officials said the city agreed to release all claims on $500,000 in advertising revenue. The city argued that Comcast owed fees on all ad income, including commissions earned by ad-placement firms outside of the MSO’s service area between 1996-99.
Los Angeles dropped that claim in arbitration due in part to the state’s four-year statute of limitations. However, the city is auditing payments now from 2000 forward, and it will raise the commission issue again, telecommunications regulatory officer William Imperial said.