Global streaming companies are pushing back against new Canadian regulations that require them to contribute to local news funding. They argue that the federal government’s decision lacks legal justification and is unreasonable. The Motion Picture Association-Canada, representing companies like Netflix and Walt Disney Co, has filed applications in federal court seeking to appeal the rules and request a judicial review.
In June, the Canadian Radio-television and Telecommunications Commission (CRTC) announced that major online streaming services must allocate 5 percent of their Canadian revenues towards supporting the domestic broadcasting system, including news production. MPA-Canada criticized the decision, stating that there was no basis for requiring foreign companies to contribute to news production and that the CRTC acted unreasonably.
The CRTC outlined that the funding would go towards addressing critical needs in the broadcasting system, such as local news, French-language programming, and Indigenous content. The regulator refrained from commenting further as the issue is now in court. The anticipated impact of the rules, slated to go into effect in September, is estimated to raise around 200 million Canadian dollars annually.
The regulation was put in place as part of a law enacted last year with the aim of ensuring that online streaming services support Canadian music, stories, and job opportunities. In addition to Netflix and Disney, other streaming platforms represented by MPA-Canada include Paramount, Sony, NBCUniversal, and Warner Bros Discovery.
Overall, the global streaming companies are fighting against the requirement to contribute financially to support local news, questioning the legal basis and rationale behind the decision.