[unfletch]

I'm not sure how offline competition relates to the "net neutrality" topic in this thread, but any offline competitor necessarily has a physical presence in the state, so it would have been subject to tax for from the beginning.

[metaphorm]

so not DVDs at Walmart then. what about satellite or cable TV?

[HuggableSquare]

DVDs at Walmart would be covered by sales tax, as would satellite and cable TV, unless it's a basic subscription.

From Pa. Code § 9.2. Sales and use tax changes:

(2) Pay television. Pay television except for ‘‘minimum pay television’’ is taxable. This includes anything charged to a customer for a service other than minimum pay television service. For example, if a cable television customer purchases basic service and in addition purchases a ‘‘pay’’ channel, tax is owed on the price charged for the ‘‘pay’’ channel. Installation and repair service for pay television with the exception of minimum pay television also is subject to tax.