Texas Cities Suing Streaming Companies For Franchise Fees

(Dallas, TX) — Disney, Hulu, and Netflix are being sued by 25 Texas cities for franchise fees.

The lawsuit was filed in Dallas County District Court hoping to get a five-percent franchise fee of the gross receipts. One attorney tells The Dallas Morning News the streaming services are actually video service providers and are “trespassing” because they’re using public property without permission.

Besides the major cities of Dallas, Houston and Austin, some other North Texas cities involved in the suit include Fort Worth, Abilene, Arlington and Waco.