Streaming companies are fighting back against new Canadian rules that require them to fund local news. They argue that the government’s decision was unjustified and lacked a legal basis. The Motion Picture Association of Canada (MPA-Canada), which represents major streaming services like Netflix and Disney, has filed applications in federal court seeking leave to appeal the rules and request a judicial review.
The Canadian Radio-television and Telecommunications Commission (CRTC) mandated that online streaming services contribute 5 percent of their Canadian revenues to support domestic broadcasting, including news production, in June. The MPA-Canada criticized the decision as lacking justification for requiring foreign online platforms to support news production. They believe the CRTC acted unreasonably in making this demand.
Despite the criticism, the CRTC declined to comment further as the matter is now in the courts. The CRTC estimates that the rules, set to take effect in September, will generate around $200 million annually. The new funding requirement was part of a law passed by the Canadian government last year aimed at promoting Canadian music and stories while supporting Canadian jobs. Along with Netflix and Disney, other streaming platforms represented by the MPA-Canada include Paramount, Sony, NBCUniversal, and Warner Bros Discovery.
