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. 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 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, the 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 anticipated impact of the rules is estimated to raise around 200 million Canadian dollars annually.
Overall, global streaming companies are fighting against the requirement to contribute financially to support local news, questioning the legal basis and rationale behind the decision.
