Global streaming giants like Netflix and Disney are pushing back against new Canadian regulations requiring them to fund local news. The Motion Picture Association-Canada, representing major streaming services, has filed for a judicial review, calling the government’s actions unreasonable and lacking legal basis.
The Canadian Radio-television and Telecommunications Commission (CRTC) mandated that online streaming platforms contribute 5 percent of their Canadian revenues towards supporting domestic broadcasting, including news production. The MPA-Canada argues that the decision lacks justification for forcing foreign companies to fund news content.
Despite the CRTC’s assertion that the funding will benefit crucial areas like local news, French-language, and Indigenous content, the regulator has remained silent on the ongoing legal proceedings. The new rules, set to take effect in September, aim to generate around 200 million Canadian dollars annually.
This initiative, part of a larger law aimed at promoting Canadian cultural content and job creation, impacts streaming services from companies like Paramount, Sony, and NBCUniversal. The battle between global streaming giants and Canadian regulators looks set to continue in the coming months.