Opinion: California cities should not impose cable-era taxes on streaming services
Over the past 10 years, consumers have voted with their feet – and their remotes – abandoning expensive cable bundles and subscribing by the millions to innovative new streaming services.
But too many regulators don’t seem to know a good thing when they see one, and are introducing new rules, taxes and regulations all over the country that would turn undermine streaming by treating it like cable. Aristotle said “treat like things alike,” and the reverse is also true: different things should be treated differently. Rules and policies designed for 1980s era cable systems are a terrible fit for 2020s era internet-based streaming services.
A Los Angeles judge has already ruled that local utility laws don’t cover streamers, which don’t use local rights-of-way and face intense competition everywhere they operate. But that hasn’t stopped cynical government revenue consultants from shopping the idea of taxing streamers to other cities, playing off the desperation of communities struggling to balance budgets.
None of this makes any sense. Cable retransmission rules were designed to address the unique challenges posed by exclusive local cable franchises and the lack of competitive markets for different kinds of programming that existed 40 years ago. Today, streaming services are highly competitive and consumers have an overwhelming array of options for how to find and watch almost any kind of programming – including local broadcast channels.
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