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SOUTHEAST TEXAS RECORD

Wednesday, May 8, 2024

More Texas cities seek AG approval to sue Netflix, other streamers over franchise fees

Attorneys & Judges
Ashcroft

Ashcroft

AUSTIN – The list of Texas cities seeking to sue Netflix, Hulu, Disney and other video service providers (VSPs) in order to recover franchise fees continues to grow. However, the list of law firms representing those cities is not.

According to documents obtained by The Record, in the month of August a total of four Texas cities submitted contingent contracts to the Attorney General’s Office in hopes of receiving a cut from video streamers.

As more and more Americans are cutting the cable cord, more and more cities are arguing that video streaming providers are also required to pay 5 percent of their gross revenues under the Texas Public Utility Regulatory Act.    

Back in February, Dallas City Council green lighted a franchise fee suit. In the month of July, the cities of Plano and Waco sent contingent fee contracts to the OAG for approval.

Last month, the cities of Abilene, Carrollton, Frisco and Garland also submitted contingent contracts to the OAG to sue Netflix and the other popular streaming companies.

The law firms of Ashcroft Sutton Reyes, McKool Smith, and Korein Tillery are representing all of the cities that submitted requests in July and August, records show.

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