Over the last few years, many homes have decided to cut the cord, paying for streaming services as opposed to cable. This is why a number of DFW cities have decided to take legal action against the streaming services, in hopes of getting them to pay the same fees cable companies have for years. Now, Irving is joining the list as well, pursuing legal action against Netflix, Hulu and Disney+.
The city of Irving recently approved an agreement for legal services, filing litigation against the streaming giants in an attempt to recover franchise fees. Traditionally, cable companies have paid for the use of lines located on streets, alleys or easements that are owned or controlled by a government entity, and the city of Irving is hoping the streaming services are required to pay these same fees. While streaming uses the same lines to get their service to homes, they have not paid these fees to any city.
According to Irving Weekly, the goal is to “require them to pay a franchise tax of 5 percent of their gross revenue for use of the public rights of way which is the same fee imposed on cable video providers.” Plano and Grand Prairie have already filed similar lawsuits. Hopefully this doesn’t lead to a raise in streaming prices.
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