Netflix And Walt Disney Reject Revenue Sharing Policy To Support Canadian Broadcasting Systems

Netflix and Disney oppose rules for earnings in Canada (photo: dock. unsplash)

JAKARTA Many companies object to revenue policies to support broadcasting systems in Canada. Netflix and Walt Disney Company also rejected the policy. Last June, Canada's Radio-television and Telecommunications Commission (CRTC) said that all major streaming services in the country must donate 5 percent of their income in Canada. This is done to support broadcasting services. According to Netflix and Walt Disney, the rules made by this national broadcast regulator are unreasonable and have no legal basis. The two companies took further action by filing a lawsuit. Motion Picture Association-Canada, representing Netflix, Walt Disney, and other unnamed companies, filed an appeal to federal courts. They demanded a judicial review of the issuance of the regulation.

"The decision does not reveal any basis for the CRTC's conclusion that it is appropriate to require foreign online companies to contribute to news production," the Motion Picture Association-Canada said in its lawsuit, quoted by Reuters. Motion Picture Association-Canada confirmed that the CRTC's actions were unreasonable, moreover the companies required to share their income were foreign companies. "(CRTC) forced foreign online companies to donate money to support news production." This rule will take effect in September and according to the CRTC will generate 146 million US dollars (Rp 2.3 trillion) per year. The plan, this revenue will help the needs of urgent broadcasting systems such as local news on radio and television.