Back in August of last year, we posted a story on: New Boston, Texas Small Town (and other cities) Suing Netflix, Hulu and Others Over Local Utility Fees.
Here with an update of sorts: the battle seems only to have expanded. If it wasn’t class action time six months ago, it is now.
But let’s keep it real. What is this about, really?
Local governments smelling money in the air from big tech companies. Since they are seeing decreased fees from Cable TV providers, it’s time to look at the new source of revenue: streaming!
With little precedent, it may take years to understand the implications of these cases. Companies will likely appeal any decision, and unless the Supreme Court takes up one of the cases, states will be covered under a patchwork of lower court rulings. But an increasing number of local governments see these fees as an opportunity to recover money from the services that are slowly replacing cable TV. “They need money now, and they’ve got this law on the books,” says Bergmayer. With the status of streaming services in flux, they’ve settled on an optimistic approach: “let’s go for it and see what happens.”The fight to make Netflix and Hulu pay cable fees – The Verge
I’m not on the side of local government on this one. Neither should anybody else that wants to see their monthly streaming fees stay low and simple. Given, Netflix and HBO Max are getting up there, but most of them are $10/month or less.
This also reminds me why I’m not a big fan of Cable TV: it’s those onerous fees, the bulk packaging of way too many garbage channels that we never watched and the painful reminder that new customers were treated to better deals than existing customers — constantly.
It’s one thing to run a promotion for brand new members, but shouldn’t loyal customers who don’t cancel and return repeatedly be treated to a better lower price over time? This would improve retention and reward customer loyalty. Instead, companies act like new customers are more important. They’re not. They’re probably less important than those who pay month after month, year after year for the service and never cancel.
I digress. A big, loud “Boooooooooo!” to this whole local fees being passed along to streaming. Glad to see Netflix and Disney (a la Hulu) lawyers are in defense mode circling this one. Deep pockets fighting back …