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• DJ The Motion Picture Association-Canada Asks Canada Appeal Court to Stop Proposed Tax on Streaming Revenue -- Update, from 22 hours ago by Dow Jones

  22 hours ago by Dow Jones
  Companies Mentioned: NFLX, WBD, PARA, PARAA, DIS
  By Paul Vieira OTTAWA--An industry group representing Netflix, Walt Disney and other U.S. streaming companies has asked a Canadian court to stop plans by authorities to force them to fork over 5% of their sales in the country to help finance local broadcast news and other domestic content. The Motion Picture Association-Canada said the order last month from the Canadian Radio-television and Telecommunications Commission exceeds the broadcast regulator's authority and fails to recognize the billions of dollars the companies spend in Canada each year. "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," said Wendy Noss, the association's president. The association represents Netflix, Walt Disney, Warner Bros. Discovery, and Paramount Global, among others, in the request to the court. Streaming companies and industry watchers had warned that the levy could lead to higher prices for millions of Canadian subscribers, with others indicating the streamers might reconsider their presence in Canada. A spokeswoman for the CRTC declined comment, saying the matter was before the courts. Last month, the regulator's chairwoman, Vicky Eatrides, said the mandated contributions are meant to address concerns that "certain types of content like local interest stories will not be made or distributed anymore. Or that they will become less available because they will not be funded by market forces alone." The CRTC had previously said the payments would begin in the 2024-25 broadcast year, starting Sept. 1, and are expected to annually contribute 200 million Canadian dollars, or the equivalent of US$147 million, to the broadcasting system. In their filing with Canada's Federal Court of Appeal, lawyers for the group say the regulator didn't reveal "any basis" for why foreign streamers are required to contribute to the production of local television and radio newscasts. The broadcast regulator "concluded, without evidence, that 'there is a need to increase support for news production,'" the lawyers said in their filing. "Imposing on foreign online undertakings a requirement to fund news production is not appropriate in the light of the nature of the services that foreign online undertakings provide." The Canadian association says the broadcast regulator "acted unreasonably," and is seeking appeal court intervention. Michael Geist, an internet law professor at the University of Ottawa, said the streaming companies' challenge rests on a lack of "rational connection" between the services and Canadian news broadcasts, and how foreign streamers are obliged to pay the levy whereas their Canada-based competitors like BCE's Crave are not. Geist added he expects further appeals, arguing the regulator's original decision "seems largely driven by a desired outcome and provides little reasoning or analysis." Write to Paul Vieira at paul.vieira@wsj.com Corrections & Amplifications This article was corrected on July 5, 2024. The Motion Picture Association-Canada asked Canada's Federal Court of Appeal to stop plans by authorities to impose a tax on foreign streaming companies. Walt Disney is an association member but is not listed as a plaintiff. The original version incorrectly suggested Disney was a plaintiff. (END) Dow Jones Newswires July 04, 2024 19:51 ET (23:51 GMT)

• DJ The Motion Picture Association-Canada Asks Canada Appeal Court to Stop Proposed Tax on Streaming Revenue, from 11:09AM ET on Thursday Jul 04, 2024 by Dow Jones

  11:09AM ET on Thursday Jul 04, 2024 by Dow Jones
  Companies Mentioned: NFLX, WBD, PARA, PARAA, DIS
  By Paul Vieira OTTAWA--An industry group representing Netflix, Walt Disney and other U.S. streaming companies has asked a Canadian court to stop plans by authorities to force them to fork over 5% of their sales in the country to help finance local broadcast news and other domestic content. The Motion Picture Association-Canada said the order last month from the Canadian Radio-television and Telecommunications Commission exceeds the broadcast regulator's authority and fails to recognize the billions of dollars the companies spend in Canada each year. "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," said Wendy Noss, the association's president. The association represents Netflix, Walt Disney, Warner Bros. Discovery, and Paramount Global, among others, in the request to the court. Streaming companies and industry watchers had warned that the levy could lead to higher prices for millions of Canadian subscribers, with others indicating the streamers might reconsider their presence in Canada. A representative from the regulator, or CRTC, didn't immediately respond to a request for comment on the court proceedings. Last month, the regulator's chairwoman, Vicky Eatrides, said the mandated contributions are meant to address concerns that "certain types of content like local interest stories will not be made or distributed anymore. Or that they will become less available because they will not be funded by market forces alone." The CRTC had previously said the payments would begin in the 2024-25 broadcast year, starting Sept. 1, and are expected to annually contribute 200 million Canadian dollars, or the equivalent of $147 million, to the broadcasting system. In their filing with Canada's Federal Court of Appeal, lawyers for the group say the regulator didn't reveal "any basis" for why foreign streamers are required to contribute to the production of local television and radio newscasts. The broadcast regulator "concluded, without evidence, that 'there is a need to increase support for news production,'" the lawyers said in their filing. "Imposing on foreign online undertakings a requirement to fund news production is not appropriate in the light of the nature of the services that foreign online undertakings provide." The Canadian association says the broadcast regulator "acted unreasonably," and is seeking appeal court intervention. Write to Paul Vieira at paul.vieira@wsj.com Corrections & Amplifications This article was corrected on July 5, 2024. The Motion Picture Association-Canada asked Canada's Federal Court of Appeal to stop plans by authorities to impose a tax on foreign streaming companies. Walt Disney is an association member but is not listed as a plaintiff. The original version incorrectly suggested Disney was a plaintiff. (END) Dow Jones Newswires July 04, 2024 11:09 ET (15:09 GMT)