Streaming Services Take Legal Challenge to Canadian News Funding Rules
Online streaming companies have voiced opposition to new Canadian rules that require them to help fund local news. The Motion Picture Association-Canada (MPA-Canada), representing major streaming services such as Netflix and Walt Disney Co, has filed applications in a federal court seeking leave to appeal the rules and request a judicial review.
In June, the Canadian Radio-television and Telecommunications Commission (CRTC) mandated that online streaming services contribute 5 percent of their Canadian revenues to support the domestic broadcasting system, including news generation. However, the MPA-Canada criticized the decision as lacking justification for requiring foreign online platforms to support news production. They believe that the CRTC acted unreasonably in making this demand.
The CRTC stated that the funding would address areas of urgent need in the broadcasting system, such as local news, French-language content, and Indigenous programming on radio and television. Despite criticism from streaming companies, the regulator declined to comment further as the matter is now in legal proceedings. The CRTC estimates that the rules set to take effect in September will generate around 200 million Canadian dollars annually.
The new funding requirement was part of a law passed by the Canadian government last year aimed at ensuring that online streaming services promote Canadian music and stories while supporting Canadian jobs. Along with Netflix and Walt Disney Co, other streaming platforms represented by MPA-Canada include Paramount, Sony, NBCUniversal, and Warner Bros Discovery.
