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SOUTHEAST TEXAS RECORD

Tuesday, May 7, 2024

Four more Texas cities seek AG approval to sue Netflix and other streamers over franchise fees

Attorneys & Judges
Ashcroft

Ashcroft

AUSTIN – The list of municipalities seeking to sue Netflix, Hulu, Disney and other streamers over franchise fees continues to grow.

Records show four Texas cities sent contingent fee agreements to the Office of the Attorney General (OAG) for approval last month.

Arlington, Grand Prairie, Allen and Amarillo joined a growing list of Texas cities seeking approval from the OAG to press forward with their franchise fee suits against the streaming video service providers (VSPs).

The other Texas cities seeking to sue Netflix and the other streamers include Sugar Land, Mesquite, Dallas, Plano, Waco, Abilene, Carrollton, Frisco and Garland. 

All of the cities to submit approval requests are represented by the same three law firms - Ashcroft Sutton Reyes, McKool Smith, and Korein Tillery.

Like cable providers, the cities are arguing that streaming VSPs are also required to pay five percent of their gross revenues under the Texas Public Utility Regulatory Act.  

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