The streamers get a Los Angeles judge to rule their way.
Under the Digital Infrastructure and Video Competition Act, enacted by California in 2006, only “video service providers” that provide “video programming” must pay up.
L.A. Superior Court Judge Yvette Palazuelos refers to lawmaker intent, federal regulation, and other decisions around the country to inform her decision. She comes to the conclusion that Netflix and Hulu don’t fit the DIVCA. “Because Netflix’s and Hulu’s services are ‘on demand,’ they are not live, linear, channelized, schedulized, or programmed,” she writes. “As such, they are not ‘comparable to programming provided by… a television broadcast station.”
The judge also rules that while DIVCA allows a city like Lancaster to go to court over underpayment of franchise fees, there’s nothing in that statute that authorizes a private right of action to force an entity like Hulu to be franchised in the first place. The judge is allowing Lancaster, California an opportunity to amend the complaint if it so chooses, though given the breadth of the ruling (
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