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Streaming giants challenge new Canadian revenue-sharing rules
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Streaming giants challenge new Canadian revenue-sharing rules
Jul 4, 2024 12:19 PM

OTTAWA, July 4 (Reuters) - Global streaming companies

said on Thursday they were challenging new Canadian rules that

oblige them to help pay for local news, saying Canada's federal

government had acted unreasonably and provided no legal basis

for the demand.

The Canadian Radio-television and Telecommunications

Commission (CRTC), the national broadcasting regulator, said in

June that major online streaming services must contribute 5% of

their Canadian revenues to support the domestic broadcasting

system, including news generation.

The Motion Picture Association-Canada, which represents

Netflix ( NFLX ), Walt Disney Co ( DIS ) and other companies,

has filed applications in a federal court for leave to appeal

the rules and ask for a judicial review.

"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," it said in a

legal filing.

"The CRTC acted unreasonably in compelling foreign online

undertakings to contribute monies to support news production."

The CRTC said the funding would be directed to areas of what

it called immediate need in the broadcasting system, such as

local news on radio and television as well as French-language

and Indigenous content.

The regulator declined to comment because the matter is

before the courts. It has previously said the rules, which are

due to become effective in September, will raise roughly C$200

million ($146 million) a year.

The measure was introduced under the auspices of a law

passed last year that the federal government says will ensure

online streaming services promote Canadian music and stories and

support Canadian jobs.

Other streaming platforms the MPA-Canada serves include

those offered by Paramount, Sony ( SONY ), NBCUniversal and

Warner Bros Discovery ( WBD ).

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