As people have cut cable subscriptions in favor of streaming services over the years, Texas cities say they have lost out on revenue from franchise fees they claim are owed by streaming giants like Disney, Hulu and Netflix.
A group of Texas cities has sued Netflix and other streaming services, claiming the companies owe cities years' worth of unpaid franchise fees.A lawsuit filed Thursday by 25 Texas cities claims that Disney, Hulu and Netflix have for years stiffed the cities out of dollars the streaming giants are required to pay under state law — and now cities are coming to collect.
Cities haven’t made up that revenue with fees from streaming services, said Steven Wolens, a former Texas lawmaker and lead attorney for the cities. Even though state law classifies them as video service providers that must pay the fees, the major streamers haven’t paid cities a dime, Wolens said.
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Texas cities say streaming giants Disney, Hulu and Netflix owe them millions of dollars in unpaid feesA lawsuit filed by 25 Texas cities, including Austin, claims that Disney, Hulu and Netflix have for years stiffed the cities out of dollars the streaming giants are required to pay under state law — and now cities are coming to collect. | via TexasTribune
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