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Netflix, Hulu Win Dismissal in Arkansas Franchise Fee Dispute

Oct. 1, 2021, 3:36 PM

Arkansas municipalities lost an important battle against Netflix Inc. and Hulu LLC in their bid for millions of dollars in unpaid utility franchise fees when a federal judge ruled they have no right of action against the entertainment companies.

Chief Judge Susan Hickey of the Western District of Arkansas on Thursday dismissed a class action brought by the City of Ashdown on behalf of dozens of units of government across the state. Hickey found no evidence the state Legislature intended for municipalities to have authority to enforce the Video Service Act.

In addition, Netflix and Hulu don’t offer “video ...