What's Happening?
California has enacted a new law aimed at regulating the volume of advertisements on streaming platforms. The legislation, signed by Governor Gavin Newsom, mandates that ads cannot be louder than the primary video content being watched. This law extends the principles of the federal Commercial Advertisement Loudness Mitigation (CALM) Act, which applies to broadcast TV and cable stations, to include streaming services. The law is set to take effect on July 1, 2026. Streaming services, represented by the Motion Picture Association and the Streaming Innovation Alliance, initially opposed the bill, citing challenges in controlling ad volume across various devices. However, the bill was amended to prevent private lawsuits against streaming services for non-compliance, leading to a neutral stance from these groups.
Why It's Important?
The regulation addresses consumer complaints about excessively loud ads on streaming platforms, a growing concern as streaming becomes a primary viewing option in many U.S. households. By aligning streaming ad volume with existing broadcast standards, the law aims to enhance viewer experience and protect consumers from disruptive advertising practices. This move reflects California's broader efforts to regulate digital media and protect consumer rights. Streaming services may face operational challenges in implementing these changes, potentially impacting their advertising strategies and revenue models.
What's Next?
Streaming platforms will need to develop technical solutions to comply with the new volume regulations by the 2026 deadline. This may involve collaboration with device manufacturers to ensure consistent ad volume control across different platforms. The law could prompt other states to consider similar regulations, potentially leading to nationwide changes in streaming ad practices. Stakeholders, including advertisers and streaming services, will likely engage in discussions to address implementation challenges and explore innovative solutions.
Beyond the Headlines
The law highlights the evolving landscape of digital media regulation, as states seek to address new consumer protection issues arising from technological advancements. It underscores the balance between innovation and regulation, as lawmakers navigate the complexities of digital advertising. The legislation may also influence broader discussions on digital media standards and consumer rights in the U.S.
