Streaming Giants Challenge Canadian News Funding Rules: Legal Battle Brews

Major streaming companies, including Netflix, Walt Disney Co and others, have filed a legal challenge to new Canadian rules that require them to help fund local news. The Motion Picture Association-Canada (MPA-Canada), which represents these companies, has argued that Canada’s federal government acted unreasonably and provided no legal basis for the demand.

In June, the Canadian Radio-television and Telecommunications Commission (CRTC) announced that major online streaming services must contribute 5 percent of their Canadian revenues to support the domestic broadcasting system, including news generation. The MPA-Canada criticized the decision, stating that there was no justification for requiring foreign online services to contribute to news production.

The CRTC defended its decision by stating that the funding would support areas in immediate need within the broadcasting system, such as local news, French-language content, and Indigenous programming. Despite the controversy surrounding the move, the regulator refrained from commenting further as the matter is now before the courts. The rules are set to go into effect in September and are expected to raise approximately 200 million Canadian dollars ($146m) annually.

These measures were introduced as part of a law passed last year to ensure that online streaming services promote Canadian music and content while also supporting Canadian jobs. The MPA-Canada also represents streaming platforms offered by Paramount, Sony, NBCUniversal and Warner Bros Discovery.