Massachusetts’ Proposed ‘Fee’ on Streamers Could Really Be a Tax

As more households replace cable television for streaming media, Massachusetts lawmakers are backing a bill that would create a franchise fee for the likes of Netflix Inc. and Hulu LLC by recognizing digital infrastructure as public rights-of-way, requiring payments from the streamers.

The widely supported measure (H.74) in the state House seeks to place a 5% levy on the annual gross revenue of streaming operators for entertainment services provided to people and businesses in the state. The bill would create a new framework for the use of digital infrastructure—like internet services—connected to public rights-of-way and provide a new ...