Major global streaming companies, including Netflix and Disney, are contesting new Canadian regulations that mandate contributions towards local news, arguing that the Canadian government’s demands lack legal justification and are unreasonable.
The Canadian Radio-television and Telecommunications Commission (CRTC), the country’s broadcasting regulator, announced in June that online streaming services must allocate 5% of their Canadian revenues to support the domestic broadcasting system, specifically for news production.
In response, the Motion Picture Association-Canada, representing Netflix, Disney, and other firms, has filed legal challenges in federal court seeking leave to appeal and requesting a judicial review. According to their legal filing, “The decision does not reveal any basis for the CRTC’s conclusion that it is appropriate to require foreign online undertakings to contribute to news production.”
“The CRTC acted unreasonably in compelling foreign online undertakings to contribute monies to support news production,” the filing further asserted.
The CRTC defended its directive, stating that the funds collected would address immediate needs within the broadcasting system, such as supporting local news across radio and television, as well as French-language and Indigenous content. However, the regulator declined to comment further, citing ongoing legal proceedings.
Under the new rules scheduled to take effect in September, the CRTC estimates that these contributions will generate approximately C$200 million ($146 million) annually.
The regulations were introduced as part of broader legislation passed last year aimed at ensuring that online streaming services promote Canadian music and cultural content, thereby supporting local employment opportunities.
Streaming platforms represented by the MPA-Canada, in addition to Netflix and Disney, include those operated by Paramount, Sony, NBCUniversal, and Warner Bros Discovery.
