Global streaming companies, including Netflix, Walt Disney Co, and others, have filed applications in a federal court in Canada to challenge new rules that require them to contribute 5 percent of their Canadian revenues to support the domestic broadcasting system, including news generation. The Motion Picture Association-Canada, representing these companies, argues that the decision by the Canadian Radio-television and Telecommunications Commission (CRTC) to compel foreign online undertakings to contribute to news production is unreasonable and lacks a legal basis.
The CRTC stated that the funding from streaming companies would go towards supporting local news on radio and television, French-language, and Indigenous content. The regulator did not comment further on the matter as it is currently before the courts, but previously mentioned that the rules would raise approximately 200 million Canadian dollars annually.
The new rules were introduced under a law passed last year, aimed at ensuring online streaming services support Canadian music and stories while promoting Canadian jobs. The MPA-Canada, which also represents platforms such as Paramount, Sony, NBCUniversal, and Warner Bros Discovery, believes that the CRTC’s decision is unjust and goes against the interests of foreign online undertakings. The regulations are set to take effect in September, but the legal battle between the global streaming companies and the Canadian government is ongoing.
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