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Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

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31–40 of 127 posts

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#31

This reminds me of the DR (Denmarks Radio - which is also a Public TV sort of like the BBC) license, you used to have to pay it for TV. I didn't have a tv so I stopped paying. Then a year or two later they passed a law that if you had a computer you had to pay. I guess lots of European countries have a similar license. They are phasing the license out in the next couple years, but it used to really piss me off becaus…

NHK in Japan has a similar scheme. If you have a TV you have to pay. If you have a phone that can receive TV signal, you have to pay. They'd even send people in person to "check if you have a TV". I believe they recently lost a court case on this.

Oh I didn't hear about the court case, thanks! I'll see if I can track some information on that down.

I live in Japan, no tv and a phone that doesn't receive TV broadcast, but the nhk guys hastle us every month or two and almost convinced my wife to pay.

Some of the tactics I've heard of them using are quite scummy as well.

Edit:

Link to some information about the court case.

https://www.japantimes.co.jp/news/2020/06/27/national/crime-...

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#32
post #9

Good ol’ cable dying a slow painful death.

Traditional cable TV you would sit on a sofa and flip through channels with a remote control, yes, but your typical Comcast/Charter/Wave/RCN type cable multiservice operator is morphing into a DOCIS3/DOCSIS3.1 or GPON fiber based last mile DIA ISP. The cable tv operators care about their municipal franchise agreements and aerial pole+underground right of way very much, since it gives them an incumbent ISP operating p…

Centurylink has pulled quite a bit of fiber in Seattle over the last 3 years, but their expansion plans are erratic (eg: putting a 12 port GPON aerial terminal in the middle of blocks of 4 story MDUs that aren't allowed to use it) and the serviceability database often has said GPON ports misallocated due to incorrect identification of the number of units in a particular property.

I think Centurylink is hard up for cash at the moment, as they just dropped gigabit fiber with a free modem & install down to $49 a month for life in most areas. Frontier did similar offers for the 2 years prior to selling the Pacific Northwest division to Ziply Fiber.

Ultimately the City of Seattle struck a bad franchise agreement with Centurylink that didn't mandate universal fiber coverage like more sparsely populated suburbs did (eg: Lynnwood, Kenmore, etc). The effectiveness of these agreements was middling though, only the litigious cities were able to ensure the franchise agreement was enforced.

Poorer townships like Kenmore have universal fiber service available to every property by 2005 written in as a hard requirement of their franchise agreements with the telco, but without enforcement action the fiber will not be built.

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#33

This reminds me of the DR (Denmarks Radio - which is also a Public TV sort of like the BBC) license, you used to have to pay it for TV. I didn't have a tv so I stopped paying. Then a year or two later they passed a law that if you had a computer you had to pay. I guess lots of European countries have a similar license. They are phasing the license out in the next couple years, but it used to really piss me off becaus…

I just wanted it to be financed through taxes as it used to be. It was completely ridiculous; after switching to a licensing model, DR’s costs for raking in money went up by about 15 million DKK just in fees to lawyers, if memory serves correctly.

We have the same scheme in Germany. The reason given for the fee vs. taxes I think is the independence of public broadcasting from the government. Imagine a bully as the head of government that can threaten to defund public broadcasting, if it doesn't report favorably for him.

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#34

Cities need to start using technology to constrain their costs rather than just stabbing at anywhere that has revenue they can tax.

Any specific suggestions for how technology can cut municipal costs?

Most of the fat in municipal spending tends to be political (pork) or criminal (public corruption and/or organized crime), rather than due to process inefficiencies that could be remedied through better use of technology.

Municipal spending tends to be dominated by the kinds of inherently labor-intensive services that can't readily be automated. Automation isn't going to have much of an impact in the number of people needed for firefighting, garbage collection, or to run and maintain urban water, sewer, electrical, and road networks anytime soon. Automation in policing is another huge civil liberties problem best left untouched.

Urban government costs money and municipal tax grab attempts like this are either evidence of greed (and/or corruption) or inadequate funding models. These are political, rather than technological, problems.

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#35

Earlier quoted context omitted.

NHK in Japan has a similar scheme. If you have a TV you have to pay. If you have a phone that can receive TV signal, you have to pay. They'd even send people in person to "check if you have a TV". I believe they recently lost a court case on this.

In Britain, the BBC uses vehicles fitted with equipment to detect TVs, though who knows how effective they are. https://en.wikipedia.org/wiki/TV_detector_van

It's unclear they even exist..or work..our could even theoretically work now we have digital. Their true enforcement strategy is to harass the small minority who don't pay the license fee.

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#36
Kinda reminds me a bit of how Milwaukee wanted money from Pokémon Go because the players was playing in the local park and some even went off the path so they were arguing the app is responsible for plants and stuff being damaged. The city lost but had to pay $83,000 in attorney fees. I think it's a bit of a overreach that a city in Indiana is trying to regulate a company in California.

I know Ohio cities can have franchise fees for cable too, wonder if the regulation is city by city or all based around the same state law... If Netflix had to follow that, I guess they'd have to have a army of lawyers review each city one by one keeping a database, filing paper work, etc. 50 states, multiplied by hundred of cities. Sounds like a massive mess. Maybe if you are the only person in a town of a few thousand watching Netflix, wouldn't be worth all the extra administration work. So wonder if maybe only the big cites would get Netflix then?

Satellite has also faced the problem of being treated differently too. I know in Florida Satellite they charge a higher tax rate compared to cable but that's state wide from my understanding, since they don't have the local equipment and as many employees to maintain the infrastructure. Well both cable and satellite has installers, etc but they could very well be contractors but still putting people to work locally.

Then I know some areas try to require a permit for satellite TV and the FCC sued cities over that because of the Over-the-Air Reception Devices (“OTARD”) rule or limit the number of satellites to 1. I have Dish at home and for some reason they installed 2 satellite dishes pointing at a slight different angle than the other one. I guess some cities and HOAs think satellites are ugly too. Some still have these ordinances on the book, so surprised cities haven't removed them... Then again in some states same sex marriage is still illegal on the books too like Ohio and Tennessee, but you know they can't enforce that anymore either because of the supreme court. I guess the problem is in Ohio marriage is defined in the state constitution, so it'd take a convention to change it but I guess not a priority even though it's kinda symbolic even if no longer law. Virginia did the same, but 2020 they passed updates at least - 5 years after the ruling.

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#37

This reminds me of the DR (Denmarks Radio - which is also a Public TV sort of like the BBC) license, you used to have to pay it for TV. I didn't have a tv so I stopped paying. Then a year or two later they passed a law that if you had a computer you had to pay. I guess lots of European countries have a similar license. They are phasing the license out in the next couple years, but it used to really piss me off becaus…

Yeah, France has the "redevance télé". You have to explicitly refuse any cable service from your ISP in order not to pay it. Otherwise you're screwed. And its cost is significant, I will never pay for such thing.

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#38

This reminds me of the DR (Denmarks Radio - which is also a Public TV sort of like the BBC) license, you used to have to pay it for TV. I didn't have a tv so I stopped paying. Then a year or two later they passed a law that if you had a computer you had to pay. I guess lots of European countries have a similar license. They are phasing the license out in the next couple years, but it used to really piss me off becaus…

In Swedish 90s, there was a public information campaign series with vigilante kids putting a snail on the eye of people who don't pay their TV license.

I think everyone who was around then recognize the reference "Do you want a snail on your eye?"

https://www.youtube.com/watch?v=yK0R-N0w8-Q

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#39
post #14

So according to them, they should get paid for any video watched in their city? Sounds kind of pathetic, tbh.

Yeah, what next Spotify tax for music broadcast? Freaking city mafias and the politicians running them, tax anything that has revenues. A political upheaval is impending.

Several countries have a mandated tariff on any kind of digital media storage (HDDs, memory cards, etc) and yes, there have been lobbying and talks on imposing this on cloud services as well.

https://en.wikipedia.org/wiki/Private_copying_levy

Re: Cities sue Netflix, Hulu, Disney+, claim they owe cable “franchise fees”

#40
post #33

Earlier quoted context omitted.

I just wanted it to be financed through taxes as it used to be. It was completely ridiculous; after switching to a licensing model, DR’s costs for raking in money went up by about 15 million DKK just in fees to lawyers, if memory serves correctly.

We have the same scheme in Germany. The reason given for the fee vs. taxes I think is the independence of public broadcasting from the government. Imagine a bully as the head of government that can threaten to defund public broadcasting, if it doesn't report favorably for him.

This is what's happening in Australia to the ABC right now.
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