Cities ask Netflix, Hulu, stream services to pay cable fees

By ANDREW WELSH-HUGGINS
Associated Press

COLUMBUS, Ohio (AP) — The Ohio Supreme Court is debating whether Netflix and other streaming services should have to pay local governments the same fees levied on cable operators.

The argument is similar to one in several other states, where cities are trying to force streaming service companies to pay cable operator fees.

At issue in Ohio is the state’s 2007 Video Service Authorization law, which directed the state Commerce Department to determine what entities must obtain permission to physically install cables and wires in a public right-of-way.

Companies deemed video service providers must pay a fee to local governments under that law. Streaming companies argue their distribution method is different from traditional video providers.