With the major US-owned studios becoming the main way people around the world watch movies and shows, many countries are starting to implement new rules to try to protect their own film industry and to keep their own culture on our screens, rather than being overrun by US imports.

Canada is in the process of introducing a new law that will require global streaming services like Disney+, Spotify and Netflix to pay 5% of their Canadian revenue into a special fund to help pay for local news and content.  

However, the Motion Picture Association-Canada (MPA-Canada), which represents the major US studios, has filed an application for leave to appeal and judicial review of the CRTC’s recent decision to force global entertainment streaming services to pay for Canadian local news.

The group states that the major global studios and streaming services have spent over $6.7 billion annually producing quality entertainment in Canada for local and international audiences and invested more in the content made by Canadian production companies last year than the CBC, or the Canada Media Fund and Telefilm combined.

Wendy Noss, President of the Motion Picture  Association – Canada, said in a statement:

“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.  Our members’ 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.”

Roger’s Take: It’s not a huge surprise to see the major studios trying to stop this new restriction coming into place, since they obviously don’t want to have to pay to create content that is broadcast on other networks.  If this does come into effect, I could easily see many of the studios just increasing their prices by more than 5% to pay the fee, plus any additional costs like administration and taxes.   The studios are also likely to continue to fight this since if this model works in Canada, we will likely see it replicated around the world, as many governments are unhappy with how much influence these global streaming services have on a local level, without often contributing and are a major reason why local channels are struggling to keep viewers.

Do you think the studios will prevent this deal from going through?  Let me know on social media!

Roger Palmer

Roger has been a Disney fan since he was a kid and this interest has grown over the years. He has visited Disney Parks around the globe and has a vast collection of Disney movies and collectibles. He is the owner of What's On Disney Plus & DisKingdom. Email: Roger@WhatsOnDisneyPlus.com Twitter: Twitter.com/RogPalmerUK Facebook: Facebook.com/rogpalmeruk

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