A town in Texas has filed a class action in Texas federal court against Netflix and Hulu, demanding that the streaming companies file an application with the Public Utility Commission of Texas for certification and pay a 5 percent quarterly franchise fee.
New Boston, Texas attorney Austin Tighe wrote in the complaint against streaming giants Netflix and Hulu that when a subscriber of Netflix or Hulu wants to watch a program, a subscriber’s internet service provider is designed to connect him or her to the closest open connect server that offers the fastest speed and high quality video and “according to Netflix, that means that most of its subscribers receive Netflix’s video programming from servers either inside of or directly connected to, the subscriber’s Internet service provider’s network within their local region.”
Hulu and Netflix are required to fill out an application with the Public Utility Commission of Texas to get the needed certification and pay the quarterly franchise fee to the cities where they provide their services. Unfortunately, the streaming companies have failed to do both.
Hulu and Netflix have not yet given a response regarding the complaint.
Netflix’s Competitors Are Determined to Dethrone the Streaming Giant
Netflix has a lot of competitors, that’s already a given. However, in the month of August, 2 competitors are trying to dethrone Netflix from its current status: HBO Max and Disney Plus.
For Disney+, it seems like it is transforming itself into a direct-to-consumer platform when it announced that its live action film “Mulan” will be released on the streaming service for a premium rental price of $29.99 on September 4. The film has been rescheduled four times due to the coronavirus pandemic. In the first week of August, Disney+ reportedly has 100 million paid subscribers compared to Netflix’s 182 million worldwide subscribers.
For HBO Max, its CEO Jason Kilar is confident that it will only take weeks to gain a million subscribers in an interview with Bloomberg. It is even planning the long-awaited “Friends” reunion that is expected to shoot in August. HBO Max was chosen to be the streaming partner for the sitcom’s unscripted special that will feature the main cast: Jennifer Aniston, Courtney Cox, Lisa Kudrow, Matthew Perry, Matt Leblanc, and David Schwimmer.