Netflix, Hulu Beat Texas Cities’ Challenge on Franchise Fees

Netflix Inc. and Hulu LLC won a victory in their fight with Texas municipalities over unpaid utility franchise fees when a federal judge found the streaming entertainment companies held no official franchise with the state.

U.S. District Court Judge Robert Schroeder of the Eastern District of Texas on Thursday dismissed a class action brought by the City of New Boston on behalf of dozens of towns and cities across Texas seeking potentially hundreds of millions of dollars in franchise fees. Schroeder found Netflix and Hulu held no certificate of franchise authority from the Public Utility Commission as required under the ...