Texas law will allow for cable and video clip provider vendors to supply services by way of transmission lines on community residence in trade for remitting 5% of gross revenue to the municipality.

Streaming products and services this sort of as Netflix, Hulu and Disney+ have their articles moved through people lines, but they do not pay out the service fees imposed on conventional cable Tv set providers.

Austin officers say they should.

Setting the table for what could switch into a protracted authorized fight, the Austin Town Council voted Thursday in favor of teaming with about a dozen Texas towns that are attempting to recover what they say are decades of unpaid costs from the video clip streaming giants.

The motion mirrors litigation in Ga, Indiana, Ohio and Nevada over franchise payment legislation that had been published to goal traditional cable suppliers, and no matter if individuals same regulations implement to online video streaming products and services that do not have their own transmission lines and produce their solution by using the world-wide-web. Texas’ law is from 2005.