TBA Law Blog


Posted by: Kate Prince on May 5, 2022

The Tennessee Supreme Court on Tuesday heard arguments from the City of Knoxville on why streaming services Netflix and Hulu should pay cable television franchise fees to the city, the Tennessee Lookout reports. It’s a first-of-its-kind case for Tennessee, but mirrors lawsuits nationwide by state and local governments looking to make the streaming providers pay franchise fees. The key issue of Knoxville’s federal suit is whether current state law would allow municipalities to recoup franchise fees from video streaming services without legislative approval or action. The Supreme Court appeared skeptical of Knoxville’s suit, with new Justice Sarah Campbell saying had a “hard time understanding” how the city’s interpretation of the state franchise law wouldn’t lead to an “absurd result.”