Netflix, Hulu Escape California City Video Service Provider Fees
Netflix and Hulu have won another case against local governments trying to tax the streaming giant, similar to what cable companies pay for their use of public infrastructure. A Los Angeles County judge ruled Wednesday that the city of Lanster has no right to sue because Netflix and Hulu do not own or operate infrastructure on public property, according to The Hollywood Reporter.
In her ruling, Los Angeles County Superior Court Judge Yvette M. Palazuelos wrote that there was “no language” in the statute “authorizing local entities to bring lawsuits to force non-franchise holders to apply for state franchises. [the Digital Infrastructure and Video Competition Act] or comply with its requirements. “
Netflix and Hulu have also won similar legal battles in Arkansas, Nevada and Texas. Streamers have been winning these cases and evading taxes and video service fees, according to the Associated Press, for reasons similar to the arguments made by Lancaster that streaming services don’t use public infrastructure.
However, according to The Hollywood Reporter, the streaming service lost a ruling in the firing phase in Missouri.
These cases are likely to persist because local governments are feeling the effects of so many cable cuts — and as the cables themselves become more distant, or at least less appealing, memories. This week, the Ohio Supreme Court heard a similar case, and the Tennessee Supreme Court will hear a similar case in May.
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