Global Streaming Giants Challenge Canadian Regulations to Support Local News: A Battle for Funding and Fairness

In June, the Canadian Radio-television and Telecommunications Commission (CRTC) announced new regulations that require major online streaming services to 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. However, global streaming companies are fighting against the requirement to contribute financially to support local news, questioning the legal basis and rationale behind the decision.

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 regulator 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, global streaming companies argue that they already invest heavily in these areas and do not need additional funding requirements.

Overall, the global streaming companies are fighting against these regulations with their filing in federal court seeking to appeal them. They argue that there is no legal justification for requiring them to contribute financially to support local news and claim it is an unreasonable request.