Motion Picture Association Warns Canada, Australia Mandates Could Divert U.S. Content Investment

Anissa Brennan, senior vice president of global policy and federal affairs for the Motion Picture Association, told the House Ways and Means subcommittee that new local‑content mandates in Canada and Australia threaten U.S. streaming companies and creative jobs.

Brennan said Canada’s Online Streaming Act gives the Canadian broadcast regulator authority to require U.S. streaming firms to pay a portion of revenues into government‑approved funds that benefit Canadian producers; she said regulators have ordered an initial 5% contribution and signaled possible total obligations ranging from 5% to 30% of gross revenues and later referenced a decision requiring at least 20% Canadian ownership of intellectual property in some programs.

On Australia, Brennan said a law that entered into force on Jan. 1 obliges streaming services to invest up to 10% of total program expenditure, or roughly 7.5% of gross revenue, in Australian programs and imposes strict nationality and reporting requirements. She described both regimes as discriminatory and urged the committee to press trading partners and consider a Section 301 investigation to enforce U.S. trade commitments.

Brennan told members that, if fully applied, the Canadian regulator’s approach could cost U.S. streaming companies an estimated $6,000,000,000 annually and said such rules could ‘‘dictate to US companies what is produced, under which deal terms, and how it is presented on screens.’’ Several members said they supported continued pressure on Canada and Australia and that the U.S. should use trade tools when partners fail to meet obligations.

The hearing record will remain open for written questions; committee members said they would continue engagement with USTR and the administration on enforcement.