AUSTIN – Two more Texas cities have joined a growing list of municipalities seeking to sue Netflix, Hulu, Disney and other streamers over franchise fees.
Documents obtained by The Record show the city of Abilene sent a contingent fee agreement to the Office of the Attorney General (OAG) for approval on Nov. 2.
Six days later, Sugar Land submitted its contract, records show.
The two cities join a growing list of cities that seek 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 Mesquite, Dallas, Plano, Waco, Abilene, Carrollton, Frisco and Garland.
All of the cities 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 5 percent of their gross revenues under the Texas Public Utility Regulatory Act.
Records also show Plano sent a first supplemental agreement to the OAG on Nov. 2.
Written by Staff reports