Tenn. Court Says Streamers Aren't Video Service Providers

Hulu and Netflix are right that they aren't video service providers under Tennessee's Competitive Cable and Video Act (CCVA) since they don't build, own or operate the wireline facilities that third-party ISPs use to deliver the streaming services' content to end-users, the Supreme Court of Tennessee in Nashville ruled Tuesday. The panel of state judges was ruling on a question referred by the U.S. District Court for the Eastern District of Tennessee, where Knoxville is suing the streaming services for video service provider franchise fees (docket 3:20-cv-00544) (see 2112230003). The CCVA revolves around giving video service providers permission to physically occupy the public rights-of-way and ensuring that those providers adequately compensate localities for that privilege, so "it would make little sense" to read it as applying to streaming services that don't have their own wireline facilities, the state judges' panel said. Deciding were Judges Roger Page, Sharon Lee, Jeffrey Bivins, Holly Kirby and Sarah Campbell, with Campbell writing the decision. Outside counsel for Knoxville didn't comment Wednesday.