In June, Canada’s 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. However, global streaming companies have pushed back against this new regulation, claiming that the federal government’s demands are unfounded and lack legal justification. The Motion Picture Association-Canada, representing major players such as Netflix and Walt Disney Co., filed applications in federal court seeking to appeal the rules and request a judicial review.
The CRTC justified the funding as necessary for critical areas within the broadcasting system, including supporting local news on radio and television, French-language programming, and Indigenous content. Despite this, the regulator refrained from commenting further due to the ongoing legal proceedings and the impending effective date of the rules in September. This new regulation is projected to generate around 200 million Canadian dollars annually.
This law was enacted last year by the federal government to ensure that online streaming services promote Canadian culture, music, and storytelling while fostering Canadian employment opportunities. The MPA-Canada also represents other streaming platforms such as Paramount, Sony, NBCUniversal, and Warner Bros Discovery, all of which are affected by the new rules.
The pushback from global streaming companies has sparked debate over whether foreign investment should be required in Canadian media outlets. Some argue that requiring foreign companies to invest in Canadian news production is essential for maintaining a diverse media landscape. Others contend that it stifles innovation and creativity in the industry.
As this issue continues to be debated in courtrooms across Canada and around the world, it remains unclear how these regulations will ultimately impact global streaming companies like Netflix and Disney+. However one thing is clear: Canada’s media industry is changing rapidly with new technologies disrupting traditional models of news production and distribution.