City of Knoxville files lawsuit against Netflix, Hulu

in People

KNOXVILLE, Tenn. (WVLT) – The City of Knoxville has filed a federal lawsuit against Netflix and Hulu.

According to the lawsuit, Netflix and Hulu provide video services in Tennessee cities and counties using wireline facilities located “at least in part in public rights-of-way.”

The lawsuit claims, Netflix and Hulu should be required by the Competitive Cable and Video Service Act to pay each of the cities and/or counties a video service provider fee of up to 5 percent of their gross revenue.

The lawsuit states, Netflix and Hulu provide video services to their subscribers who use internet-connected devices to view them. When a subscriber to these services wants to watch their programming their device sends a request to the Internet service provider. The internet service provider then forwards that request to Netflix and Hulu’s dedicated Internet servers to deliver the programming back to the subscriber’s device.

Netflix reportedly used a content delivery network called Netflix Open Connect to deliver all of its video traffic to subscribers. “When a Netflix subscriber wants to view Netflix programming, the subscriber’s Internet service provider will connect the subscriber to the closest Netflix Open Connect server offering the fastest speeds and best video quality.”

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