What is the story about?
What's Happening?
California has enacted a new law requiring streaming services like Netflix, Hulu, Prime Video, and YouTube to ensure advertisements are aired at the same volume as the content being streamed. Signed by Governor Gavin Newsom, the law will take effect in July 2026. The legislation, known as Bill 576, was introduced by State Senator Tom Umberg, inspired by complaints about loud ads disturbing sleep. The law is modeled on the CALM Act, which regulates ad volume for TV broadcasters but does not apply to streaming platforms. California's influence in the entertainment industry could lead to broader adoption of similar standards across the U.S.
Why It's Important?
This legislation addresses a widespread issue among streaming service users who have experienced disruptive loud ads. By regulating ad volume, California aims to improve the streaming experience for its residents, potentially influencing national standards. The law reflects a shift towards consumer-friendly practices in digital advertising, which could lead to changes in how ads are delivered across platforms. Streaming services may need to invest in technology to comply with the new regulations, impacting their operational strategies. The law also highlights California's role in setting trends within the entertainment industry.
What's Next?
Streaming platforms are expected to adjust their systems to comply with the new law by the 2026 deadline. The legislation could prompt other states to consider similar measures, potentially leading to nationwide changes in streaming ad practices. As platforms adapt, they may explore new advertising strategies that align with consumer preferences for less intrusive ads. The law's impact on national standards remains to be seen, but it could influence broader regulatory changes in digital advertising.
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