Creve Coeur Files Suit Against Netflix, Hulu Demanding Back Taxes

CREVE COEUR, MO — With local governments increasingly in financial dire straights, some are turning to creative solutions to tip their ledgers back toward the black. In the latest example, about half of St. Louis County municipalities, led by Creve Coeur, are petitioning for class action status in a lawsuit meant to force online streaming services like Netflix and Hulu to cough up some cash, the Post-Dispatch reports.

Attorneys for the city argue that internet streaming services should have to pay right-of-way fees just like cable providers, and Creve Coeur wants 5 percent of the companies' gross monthly revenues, retroactive for five years.

As more and more of the economy goes online, cities are trying to find ways to recover some of their lost revenue.

A similar suit forced Verizon, AT&T and other cellphone companies to pay millions of dollars to dozens of St. Louis County municipalities back in 2008. Indeed, some of the same lawyers are working on this case, including John Mulligan, who represents several municipalities — including Clayton and University City.

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According to the Post-Dispatch, Mulligan and his legal team received more than $16 million — about a quarter — of the $65 million settlement. University City received $874,000, plus about $184,000 a year.

Netflix declined to comment for this story.

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