Streaming Giants Challenge Canadian Government’s Plan to Fund Local News in Legal Battle

The Canadian government’s decision to require streaming services to fund local news has been met with opposition from major streaming companies. The Motion Picture Association-Canada, which represents major streaming platforms like Netflix and Walt Disney Co, has filed an appeal in federal court seeking a judicial review of the new rules.

The Canadian Radio-television and Telecommunications Commission (CRTC) mandated that online streaming services contribute 5 percent of their Canadian revenues to support the domestic broadcasting system, including news generation. This decision was criticized by the MPA-Canada as lacking a justification for requiring foreign online platforms to support news production. The association believes that the CRTC acted unreasonably in making this demand.

Despite criticism, 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. The CRTC estimates that the rules will generate around 200 million Canadian dollars annually and take effect in September.