Grand Prairie is suing three major streaming services — Netflix, Hulu and Disney+ — seeking the payment of franchise fees, which the city says are owed because the companies are using wires located in the public right of way.
According to our media partners at The Dallas Morning News, the city council voted to approve a contract Tuesday with the same three law firms hired by Dallas, Plano and Frisco, which have announced similar lawsuits.
The action comes as traditional tax-revenue sources undergo significant change. For instance, revenue from occupancy taxes paid by hotels in the Dallas area has taken a massive hit during the COVID-19 pandemic; meanwhile, franchise fees paid to cities by traditional cable TV providers like AT&T have shrunk as customers shift their business to streaming services, which have not had to pay such franchise fees.
Grand Prairie is trying to collect fees dating back to 2007 and wants an order forcing the streaming services to pay in the future.
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