[Jiggly]

Some towns and counties in the US are suing Netflix, Hulu and some other streaming services for 5% of their gross revenue in their respective districts. They are aiming to make these services more regulated, similarly to cable TV. This could cost these companies millions. There is also potential for these costs to be passed onto consumers.

Code:

The federal lawsuit, reported earlier this month by Atlanta Business Chronicle, was originally filed in state court last year. It argues that Netflix and Hulu — along with satellite providers Dish Network and DirecTV, as well as Disney’s entertainment distribution division — violated a 2007 law called the Georgia Consumer Choice for Television Act. That rule specifies that “video services” must pay a quarterly franchise fee to local governments, unless they’re part of a larger internet service package or operate wirelessly. Georgia isn’t the only place where local towns are pushing for streaming fees. As The Hollywood Reporter reported last year, two law firms recently filed similar suits on behalf of towns in Texas, Indiana, Ohio, and Nevada. And in 2018, the city of Creve Coeur, Missouri paved the way by suing Netflix and Hulu under that state’s franchise laws. With municipal budgets cratered by the pandemic, slapping a franchise fee on cash-heavy tech companies has never been more appealing. A single successful lawsuit could cost these companies millions. Gwinnett County, one of three municipalities named in the suit, charges 5 percent of a company’s local gross revenue in franchising fees. A filing calculates that Netflix made $103 million from Gwinnett County subscribers over the past five years — which would translate to $5.15 million in retroactive fees for that area alone. (Netflix declined to comment on the numbers cited in the story.) The plaintiffs in these cases are seeking class action status, which would make companies liable for any “similarly situated” state locales as well.

Source

[mothered]

This could cost these companies millions.

Pocket money for Netflix.

If Marc Randolph looks hard enough, he'll find It between the couch cushions.

[Jiggly]

This could cost these companies millions.

Pocket money for Netflix.

If Marc Randolph looks hard enough, he'll find It between the couch cushions.

Lol! This is a man who could lose a 100 dollar bill and not cry.