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Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”:
Four cities in Indiana are suing Netflix and other video companies, claiming that online video providers and satellite-TV operators should have to pay the same franchise fees that cable companies pay for using local rights of way.
The lawsuit was filed against Netflix, Disney, Hulu, DirecTV, and Dish Network on August 4 in Indiana Commercial Court in Marion County. The cities of Indianapolis, Evansville, Valparaiso, and Fishers want the companies to pay the cable-franchise fees established in Indiana's Video Service Franchises (VSF) Act, which requires payments of 5 percent of gross revenue in each city.
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(Score: 1, Interesting) by Anonymous Coward on Friday August 21 2020, @11:48AM (4 children)
City's taxes drying up as folks cut classic cable..
Previous taxes laws written to cover classic cable.
Indiana law (IC 8-1-34-16 Sec. 16. (a) (1) )appears to depend on federal law(47 U.S.C. 522(10)),
Federal law seems about regulating 'cable systems' 47 U.S.C. 522.
(7)the term “cable system” means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide cable service which includes video programming and which is provided to multiple subscribers within a community, but such term does not include
(A) a facility that serves only to retransmit the television signals of 1 or more television broadcast stations;
(B) a facility that serves subscribers without using any public right-of-way;
(C) a facility of a common carrier which is subject, in whole or in part, to the provisions of subchapter II of this chapter, except that such facility shall be considered a cable system (other than for purposes of section 541(c) of this title) to the extent such facility is used in the transmission of video programming directly to subscribers, unless the extent of such use is solely to provide interactive on-demand services; (D) an open video system that complies with section 573 of this title; or (E) any facilities of any electric utility used solely for operating its electric utility system;
(6)the term “cable service” means—
(A)the one-way transmission to subscribers of (i) video programming, or (ii) other programming service, and
(B)subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service;
(Score: 1, Informative) by Anonymous Coward on Friday August 21 2020, @12:40PM (3 children)
The reasoning for the law might be questionable, but it seems like the tax also apply to online videoplatforms.
https://law.justia.com/codes/indiana/2012/title8/article1/chapter34/ [justia.com]
IC 8-1-34-14 "Video service"
Sec. 14. (a) As used in this chapter, "video service" means:
(1) the transmission to subscribers of video programming and other programming service:
(A) through facilities located at least in part in a public right-of-way; and
(B) without regard to the technology used to deliver the video programming or other programming service; and
(2) any subscriber interaction required for the selection or use of the video programming or other programming service.
(b) The term does not include commercial mobile service (as defined in 47 U.S.C. 332).
As added by P.L.27-2006, SEC.58.
IC 8-1-34-15
"Video service system"
Sec. 15. (a) As used in this chapter, "video service system" means a system, consisting of a set of transmission paths and associated signal generation, reception, and control equipment, that is designed to provide video service directly to subscribers within a community. The term includes the:
(1) optical spectrum wavelengths;
(2) bandwidth; or
(3) other current or future technological capacity;
used to provide the video service.
(b) The term does not include a system that transmits video service to subscribers without using any public right-of-way.
As added by P.L.27-2006, SEC.58.
(Score: 1, Interesting) by Anonymous Coward on Friday August 21 2020, @02:06PM
I don't see how it does by that definition. The issue is it is clearly talking about purpose build hardware in a public right of way that ONLY does video delivery. How does that describe Netflix.
(Score: 0) by Anonymous Coward on Friday August 21 2020, @02:10PM
(b) The term does not include a system that transmits video service to subscribers without using any public right-of-way.
So, if they use public internet with encryption they should be fine?
(Score: 1, Insightful) by Anonymous Coward on Friday August 21 2020, @03:53PM
It doesn't really matter if Netflix is a video service under the definition or not, because the fee was already paid by the ISP.
The analogy would be going to the cable company for the fee, and then getting a list of the channels they carry, and then going to them and trying to collect the fee again.