Streaming companies challenge Canadian rules on local news funding
The Motion Picture Association-Canada has filed for a judicial review, arguing the Canadian Radio-television and Telecommunications Commission (CRTC) has acted unreasonably and without legal basis.
Global streaming companies are contesting new Canadian regulations requiring them to contribute to local news funding, arguing the federal government has acted without legal justification. In June, the Canadian Radio-television and Telecommunications Commission (CRTC) announced that all major online streaming services must allocate 5% of their Canadian revenues to support the domestic broadcasting system, including news production. The Motion Picture Association-Canada, representing Netflix, Walt Disney Co., and others, has filed applications for a judicial review, claiming the CRTC’s decision lacks a legal basis.
The CRTC stated that the funds would support areas of immediate need in the broadcasting system, such as local news, French-language, and Indigenous content. The regulator expects the rules, effective in September, to generate roughly CAD 200 million annually. However, the streaming companies argue that it is unreasonable to compel foreign entities to support Canadian news production.
The measure, introduced under a law passed last year, aims to ensure that online streaming services promote Canadian content and support local jobs. The Motion Picture Association-Canada, representing other platforms like Paramount, Sony, NBCUniversal, and Warner Bros Discovery, is leading the legal challenge against these regulations.
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