Streaming Giants Challenge New Canadian News Funding Regulations, File Lawsuit

Canadian streaming companies are pushing back against new regulations that require them to contribute to local news funding. They argue that the federal government’s decision lacks legal justification and is unreasonable. 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. 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.

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. The anticipated impact of the rules, slated to go into effect in September, is estimated to raise around 200 million Canadian dollars annually.

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. However