Austin suing Netflix, Hulu, Disney for not paying their share to stream

Austin

AUSTIN (KXAN) — The Austin City Council approved Thursday hiring attorneys to represent the city in a lawsuit against streaming services.

The approved resolution says Netflix, Hulu and Disney aren’t paying the required 5% of their gross revenue to use transmission lines and other public property to deliver streaming video programming.

It goes on to say the companies “use the City’s public rights of way to provide their video services to subscribing customers via broadband internet through wireline facilities located at least partially in the public right of way.”

The city said it has to use outside counsel because its internal law department “is not currently staffed at a level that would allow it to take on the considerable and specialized effort necessary to pursue these claims.”

The law firms the city will work with are McKool Smith, P.C., Ashcroft Sutton Reyes LLC and Korein Tillery, LLC on a contingency fee agreement.

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