In a recent development, global streaming giants, including Netflix, Paramount, and Disney, have filed a court appeal in Canada, seeking to halt the implementation of proposed laws mandating payment for local news. The Motion Picture Association-Canada (MPA-Canada), representing these prominent entities, argues that the requirement is discriminatory and goes beyond the intended scope set by Parliament.

MPA-Canada contends that the law exceeds the authority of the regulator, the Canadian Radio-television and Telecommunications Commission (CRTC). They argue that the billions of dollars these streaming services invest annually in content production within Canada should be acknowledged. However, their concern lies specifically with the clause enforcing payment for local news, while contributions to other production funds, such as the Indigenous Screen Office (ISO), Black Screen Office (BSO), and Canada Media Fund (CMF), are not objected to.

The filing highlights the significant financial contributions made by global studios and streaming services, amounting to over C$6.7 billion spent on content production in Canada. It emphasizes that their investments in Canadian production companies surpassed that of the Canadian Broadcasting Corporation (CBC), CMF, and Telefilm combined.

Wendy Noss, President of MPA-Canada, states that streaming services do not produce local news and do not enjoy the legal privileges and protections granted to Canadian broadcasters in exchange for their responsibility to provide such news.

The CRTC had previously announced that the levy, part of the controversial C-11 Bill, would go into effect in September. The levy would require streamers to invest 5% of their local revenues into a fund earmarked for local news. The regulator estimates that this fund could contribute approximately C$200 million annually to the Canadian broadcasting system. Additionally, the CRTC has expressed that the funding would support local news on radio and television, French-language content, Indigenous content, and content by and for equity-deserving communities, official language minority communities, and Canadians of diverse backgrounds.

While echoing concerns heard in several countries worldwide, Canada has become a focal point for this debate. Streamers question the rationale behind paying for local programs or news, stressing their substantial investments in the Canadian market. The outcome of this court appeal could have far-reaching consequences, with potential impacts on investment by streaming services if regulations are implemented.

At the time of reporting, the CRTC could not be reached for comment. The case remains under review, and further developments are awaited regarding the position of both the regulator and streaming giants regarding this contentious issue.