In Canada, major streaming companies are fighting back against new regulations that require them to contribute to local news. The Motion Picture Association-Canada (MPA-Canada) has filed applications in federal court seeking to appeal the rules and request a judicial review. In June, the Canadian Radio-television and Telecommunications Commission (CRTC) announced that online streaming services must allocate 5 percent of their Canadian revenues to support the domestic broadcasting system and news generation.
MPA-Canada argues that the CRTC’s decision lacks a rationale for foreign companies to fund news production, labeling it as unreasonable. The CRTC justified the funding as necessary for critical areas within the broadcasting system, such as supporting local news on radio and television, French-language programming, and Indigenous content. However, the regulator refrained from commenting further due to ongoing legal proceedings and the impending effective date of the rules in September, which is projected to generate around 200 million Canadian dollars annually.
The regulation was implemented under a law enacted last year by the federal government to ensure that online streaming services promote Canadian culture, music, and storytelling while fostering Canadian employment opportunities. MPA-Canada also represents streaming platforms like Paramount, Sony, NBCUniversal, and Warner Bros Discovery, all of which are affected by the new rules.
Netflix has been particularly vocal in its opposition to these regulations. The company claimed that they would have a “chilling effect” on investment in Canada’s creative industries. Other streaming services have also expressed concern about increased costs without clear benefits.
The debate over these regulations highlights broader issues surrounding media ownership and control in Canada. Some argue that these rules are necessary to promote Canadian content and protect local media outlets from being overshadowed by larger global corporations. Others worry that these regulations could stifle innovation and creativity in Canada’s media industry.
As legal proceedings continue, it remains to be seen whether these regulations will stand or be struck down by courts. However one thing is clear: this issue will continue to dominate discussions around media ownership and control in Canada for years to come.
