Canadian Streaming Giants Challenge Proposed 5% Revenue Tax

The Motion Picture Association-Canada (MPA-C), on behalf of Disney (DIS), Netflix (NFLX), and multiple other streamers, is contesting a proposed 5% tax on their revenue generated within Canada. This tax, suggested by the Canadian Radio-television and Telecommunications Commission (CRTC), is aimed at funding local news services across the country. If implemented, this tariff could potentially raise approximately 200 million Canadian dollars ($147 million) every year, based on government statistics. The MPA-C has filed a case on Thursday in Canada's Federal Court of Appeals to oppose this proposal, which is due to take effect this fall. Warner Bros. Discovery (WBD) and Paramount Global (PARA) are also partaking in this lawsuit. Wendy Noss, President of MPA-C, asserted that the CRTC's decision to mandate global streaming services to fund local news is an excessive, discriminatory measure that surpasses what the Parliament originally intended. She further added that this mandate contradicts the aim of establishing a modern, adaptable framework that acknowledges the nature of the services these global streaming platforms provide. The CRTC, however, maintains that the funds collected would be put into addressing immediate needs of the Canadian broadcasting system, including local news and French-language content.