Streaming platforms launch multiple legal challenges to Bill C-11 payments in Canada

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The challenges threaten to delay implementation of the act, which would compel foreign streaming giants to pay about $200-million a year to support Canadian music, TV, film and radio

Foreign streaming platforms – including Netflix, Disney, Paramount and Spotify – have launched Federal Court challenges to the implementation of measures under Ottawa’s Online Streaming Act, which will force them to inject millions of dollars into Canada’s broadcast sector.

The Motion Picture Association – Canada, whose members include Netflix, argues that the funding mechanism chosen by the CRTC could lead to the disclosure of sensitive, confidential financial information to Canadian broadcasters they compete with.

“The CRTC’s decision to require global entertainment streaming services to pay for local news is a discriminatory measure that goes far beyond what Parliament intended, exceeds the CRTC’s authority and contradicts the goal of creating a modern, flexible framework that recognizes the nature of the services global streamers provide,” said Wendy Noss, president of the MPA – Canada.

“The contributions must be made to various government-mandated funds, such as local news production for the benefit of commercial radio stations, that have been preselected by the CRTC,” he said in a statement. “The approach taken is backward-looking and bad public policy from the current Government of Canada, and fails to acknowledge streaming’s existing contributions to music production.”

The Indigenous Music Office, a new fund supporting Indigenous music, will receive 0.15 per cent of the funding by December.

 

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