The Canadian government has been met with opposition from streaming companies over new rules that require them to contribute to the local news industry. Major streaming services such as Netflix and Walt Disney Co, represented by the Motion Picture Association-Canada (MPA-Canada), argue that the decision is unreasonable and lacks legal basis. In June, the Canadian Radio-television and Telecommunications Commission (CRTC) mandated online streaming services to contribute 5% of their Canadian revenues towards supporting the domestic broadcasting system, including news generation.
The MPA-Canada criticized the decision as lacking justification for requiring foreign online platforms to support news production. They believe that the CRTC acted unreasonably in making this demand. However, the CRTC stated that the funding would address areas of urgent need in the broadcasting system, such as local news, French-language content, and Indigenous programming on radio and television. Despite criticism from streaming companies, the regulator declined to comment further on the matter as it is now in the courts. The CRTC estimates that the rules set to take effect in September will generate around 200 million Canadian dollars annually.
The new funding requirement was part of a law passed by
