Aug 8, Kathmandu- The state of Texas America has filed a case against OTT platforms including Netflix, Disney, and Hulu for not paying the 'franchise fee' that the OTT platforms have to pay to the state for broadcasting the video.
According to the Texas Tribune, cities such as Austin, Dallas, Fort Worth, and other cities in Texas have gone to legal remedies against the OTT platform after not paying the franchise fee since 2007.
There is a law to pay franchise fees in case of broadcasting services using public communication line and only TV service providers have been paying this fee before only.
Although recently many people are using the OTT platform instead of just TV, the OTT platform is reluctant to pay the 'franchise fee', the revenue collection of the city has decreased and infrastructure development and other service sectors have also been affected, according to the media report.
It is said that these companies have to pay millions of dollars in fees, although there is no definite information about how much fees these platforms have to pay.