'Netflix Tax' Could Put a Dent in Binge-Watching

Multiple California cities are looking into a tax on video-streaming services like Netflix and Amazon.
2:25 | 11/29/16

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Transcript for 'Netflix Tax' Could Put a Dent in Binge-Watching
people with hearing loss, Switch to Sprint today. Visit Sprintrelay.com That's a scene from Netflix "Gilmore girls" reboot and so many are binge-watching it this week but now guess what, you could face a tax for using streaming services like Netflix and Amazon. Look at the look on your face, George. Very upset. Does not seem right. We have the details. I mean it. This is my stress relief. Do not make my stress relief stressful. Reporter: Bad news "Gilmore girls," binging on Netflix might not become quite so chill. Dozens of cities across California are considering taxing Netflix and other video streaming services. Jeepers, Terry. This is bad. Reporter: Maybe for kimmy, not for municipalities looking to recoup cash lost by all those cord cutters. Their argument we're taxed on cable TV subscriptions so why not streaming? With 47 million Netflix subscribers in the U.S. A potential tax pot of over half a billion dollars a year. These cities are trying to use a decades old utility tax to take a tax out of your websites and apps such as Netflix and hulu and possibly others. That would be bad. Oh, a disaster, ma'am. Reporter: Netflix tells us it's a dangerous precedent. It's a slippery slope. If you're going to say a website or app such as Netflix or others are utilities anything can be utility. Reporter: Pasadena considering a 9.4% levy. How much will it cost. Unacceptable. Reporter: Some in Chicago say filing a class action lawsuit after their city imposed a 9% tax on streaming services last year. In Pennsylvania, it's 6% statewide. Tell me what to do. Voters are on the side. I think the law is on our side and we'll see what happens. I feel like that story had a lot of unnecessary details in it. Reporter: For "Good morning America," Nick watt, ABC news, Los Angeles. Ah, all the shows I love to watch. Clever piece but I guess a lot will depend on what the tax goes for. State to state, right. City to city and whether people 1230r it. I can afford a dollar a month -- I just want to watch "Gilmore girls." Give us the buck.

This transcript has been automatically generated and may not be 100% accurate.

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