Global streaming services such as Netflix and Disney Plus are challenging a regulatory directive under the Online Streaming Act to contribute money to Canada91裸聊视频檚 broadcast sector, including for local news.
Motion Picture Association-Canada, which also represents platforms HAYU, Sony91裸聊视频檚 Crunchyroll, Paramount Plus and Pluto TV, has filed two legal challenges in Federal Court in response to the new rule.
The Canadian Radio-television and Telecommunications Commission said in June that foreign streamers must contribute five per cent of their annual Canadian revenues into a fund devoted to producing Canadian content, including local TV and radio news, as well as Indigenous and French-language content.
The CRTC said streaming companies that are not affiliated with a Canadian broadcaster 91裸聊视频� and that make at least $25 million in Canadian revenue 91裸聊视频� would be required to pay into the fund, which is expected to inject about $200 million into the system every year.
MPA-Canada is seeking a leave to appeal and a judicial review of the CRTC91裸聊视频檚 decision, arguing the regulator has no statutory authority to compel foreign companies to support Canadian news production and that it made 91裸聊视频渆rrors of law and jurisdiction.91裸聊视频�
The U.S.-based Digital Media Association also says three of its members 91裸聊视频� Amazon, Apple and Spotify 91裸聊视频� have filed legal challenges to the mandatory financial contributions, calling the CRTC decision 91裸聊视频渂ackward-looking91裸聊视频� and unsustainable.
The CRTC said in a statement Friday that it will 91裸聊视频渃ontinue to balance consulting widely with moving quickly to build the new regulatory framework,91裸聊视频� but declined to comment on the streamers91裸聊视频� legal challenges as the case is before the court.
The CRTC91裸聊视频檚 move is meant to level the regulatory playing field between tech giants and cable companies, but a spokesperson for MPA-Canada said requiring global entertainment streaming services to pay for local news 91裸聊视频渋s a discriminatory measure that goes far beyond what Parliament intended.91裸聊视频�
91裸聊视频淥ur members91裸聊视频� streaming services do not produce local news nor are they granted the significant legal privileges and protections enjoyed by Canadian broadcasters in exchange for the responsibility to provide local news,91裸聊视频� the group91裸聊视频檚 president, Wendy Noss, said in a statement.
In its court filings, MPA-Canada also argues that the CRTC rule could indirectly allow the disclosure of foreign streamers91裸聊视频� confidential revenue information to the Canadian broadcasters they compete with.
The Digital Media Association has also expressed concern about its members having to share 91裸聊视频渟ensitive commercial information91裸聊视频� with third parties, including Canadian broadcasters.
91裸聊视频淭he approach taken is backward-looking and bad public policy from the current government of Canada, and fails to acknowledge streaming91裸聊视频檚 existing contributions to music production,91裸聊视频� the association wrote in a statement that urges the CRTC to rethink its implementation of the Online Streaming Act.
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