International Streaming Leaders Urge Canadian Court to Halt Streaming Levy Implementation

Money | July 5, 2024, 6:33 p.m.

The global streaming giants, represented by MPA-Canada, are challenging Canadian plans to require them to pay for local news in court. MPA-Canada argues that this requirement goes beyond Parliament's intentions and exceeds the authority of the CRTC. While they do not dispute the levy as a whole, they specifically oppose the clause mandating the payment for local news. MPA-Canada highlights the significant investments made by global studios and streaming services in producing content in Canada for both domestic and international audiences. They argue that their services do not produce local news and do not receive the same legal privileges and protections as Canadian broadcasters who are responsible for providing local news. The CRTC plans to enforce the levy in September, requiring streamers to invest 5% of their local revenues into a fund supporting local news. The regulator believes this fund will address immediate needs in the Canadian broadcasting system. Streamers have questioned the justification for paying for local programs, emphasizing their existing investments in the Canadian market. The outcome of this legal battle could have broader implications for the streaming industry worldwide.