The 5% franchise fee is calculated on more than just the items on your bill. Cable companies earn non-subscriber revenues by selling advertising, airtime and other services via the cable system. The FCC released the following statement on October 4, 2001.
The Federal Communications Commission (FCC) today said cable operators may pass through to consumers and itemize on monthly bills the entire amount of a franchise fee assessed by the local franchising authority, including franchise fees from non-subscriber related revenue, pursuant to the Communications Act.
Cobb County receives reports from cable providers each quarter which details all revenue sources that are included in franchise fee calculations. The franchise fee portion of your bill will likely calculate to be between 6.3 and 6.7 of your total cable bill. The additional 1.3 % to 1.7 % is attributed to non-subscriber revenues.