Major streaming services contest new Canadian revenue-sharing regulations | Business and Economic Updates

Global streaming companies, including Netflix, Walt Disney Co, and others, have expressed opposition to new Canadian rules that require them to help fund local news. The Motion Picture Association-Canada, representing these companies, has filed applications in federal court challenging the rules and requesting a judicial review. They argue that Canada’s federal government acted unreasonably and provided no legal basis for the demand.

The Canadian Radio-television and Telecommunications Commission (CRTC) announced in June that major online streaming services must contribute 5 percent of their Canadian revenues to support the domestic broadcasting system, including news generation. MPA-Canada criticized the decision, stating that there was no justification for requiring foreign online services to contribute to news production.

The CRTC defended its decision, stating that the funding would support areas in immediate need within the broadcasting system, such as local news, French-language content, and Indigenous programming. Despite the controversy, the regulator refrained from commenting further as the matter is now before the courts. The rules are set to go into effect in September and are expected to raise approximately 200 million Canadian dollars ($146m) annually.

These measures were introduced as part of a law passed last year to ensure that online streaming services promote Canadian music and content, as well as support Canadian jobs. The MPA-Canada also represents streaming platforms offered by Paramount, Sony, NBCUniversal, and Warner Bros Discovery.