Global streaming services such as Netflix and Disney Plus are challenging a regulatory directive under the Online Streaming Act to contribute money to Canada害羞草研究所檚 broadcast sector, including for local news.
Motion Picture Association-Canada, which also represents platforms HAYU, Sony害羞草研究所檚 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 害羞草研究所� and that make at least $25 million in Canadian revenue 害羞草研究所� 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 CRTC害羞草研究所檚 decision, arguing the regulator has no statutory authority to compel foreign companies to support Canadian news production and that it made 害羞草研究所渆rrors of law and jurisdiction.害羞草研究所�
The U.S.-based Digital Media Association also says three of its members 害羞草研究所� Amazon, Apple and Spotify 害羞草研究所� have filed legal challenges to the mandatory financial contributions, calling the CRTC decision 害羞草研究所渂ackward-looking害羞草研究所� and unsustainable.
The CRTC said in a statement Friday that it will 害羞草研究所渃ontinue to balance consulting widely with moving quickly to build the new regulatory framework,害羞草研究所� but declined to comment on the streamers害羞草研究所� legal challenges as the case is before the court.
The CRTC害羞草研究所檚 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 害羞草研究所渋s a discriminatory measure that goes far beyond what Parliament intended.害羞草研究所�
害羞草研究所淥ur members害羞草研究所� 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,害羞草研究所� the group害羞草研究所檚 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 streamers害羞草研究所� confidential revenue information to the Canadian broadcasters they compete with.
The Digital Media Association has also expressed concern about its members having to share 害羞草研究所渟ensitive commercial information害羞草研究所� with third parties, including Canadian broadcasters.
害羞草研究所淭he approach taken is backward-looking and bad public policy from the current government of Canada, and fails to acknowledge streaming害羞草研究所檚 existing contributions to music production,害羞草研究所� the association wrote in a statement that urges the CRTC to rethink its implementation of the Online Streaming Act.
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