Netflix, Disney+ and its sister streaming service Hulu were sued by 25 Texas cities for failing to pay millions of dollars in municipal franchise fees as of 2007.
The Dallas County, Texas-based lawsuit was filed on behalf of 25 Texan cities, including Austin, Dallas, Fort Worth, and Houston. Blue Ribbon News,
The lawsuit alleges that the streaming giant did not pay the annual franchise fee, which is required by the Texas Public Utility Regulatory Act (PURA) and used to fund basic city services.
The lawsuit states, “Disney, Hulu and Netflix have long withheld statutorily required payments to cities throughout Texas, thereby denying them fees that help fund essential city services.” ” “This case was filed on behalf of our municipal customers to ensure future compliance with Pura and to recover significant fees owed by some of the largest streaming services in the country.”
Disney, Hulu and Netflix did not immediately comment.
Cities have been seeking reimbursement of annual franchise fees, as well as interest, since Disney, Hulu and Netflix began streaming their platforms in Texas in 2007, 2011 and 2019, respectively.
For Disney, the Texas lawsuit isn’t its only court battle. Several actors and former cast members are suing Disney over its vaccine mandate, which has cost them their jobs. And, according to the Disney Blog inside the magicA federal judge recently approved a $5 million dollar lawsuit against Disneyland Resort over misleading and factually incorrect statements about its annual pass program.