California Enacts Law to Regulate Ad Volume on Streaming Platforms

What's Happening?

California has introduced a new law aimed at regulating the volume of commercial advertisements on streaming platforms. Signed by Governor Gavin Newsom, the law mandates that ads on streaming services cannot be louder than the primary video content being watched. This legislation builds on the federal Commercial Advertisement Loudness Mitigation (CALM) Act, which was passed in 2010 to control ad volume on broadcast TV and cable stations. The law will take effect on July 1, 2026, and addresses complaints received by the Federal Communications Commission (FCC) regarding loud commercials on streaming services. State Senator Thomas Umberg, who introduced the bill, was inspired by personal experiences shared by his legislative director, whose infant daughter was disturbed by loud streaming ads. Despite initial opposition from the Motion Picture Association and the Streaming Innovation Alliance, the bill was amended to prevent private lawsuits against streaming services, leading to neutrality from these groups.

Why It's Important?

The enactment of this law is significant as it addresses a growing concern among consumers about the disruptive nature of loud advertisements on streaming platforms. As streaming services have become the primary viewing option for many U.S. households, ensuring a consistent and pleasant viewing experience is crucial. This law could set a precedent for other states to follow, potentially leading to nationwide changes in how streaming services manage ad volume. The entertainment industry, particularly streaming platforms like Netflix and Hulu, may face challenges in implementing these changes due to the decentralized nature of ad sourcing. However, the law aims to enhance consumer satisfaction and protect viewers from unexpected loud noises, which can be particularly disruptive in households with young children.

What's Next?

With the law set to take effect in 2026, streaming services will need to develop strategies to comply with the new regulations. This may involve technological advancements to better control ad volume across various devices. The FCC may also play a role in monitoring compliance and addressing any ongoing consumer complaints. As the law progresses, other states may consider similar legislation, potentially leading to broader regulatory changes in the streaming industry. Stakeholders, including streaming platforms and consumer advocacy groups, will likely continue to engage in discussions to ensure the law's effective implementation and address any unforeseen challenges.

Beyond the Headlines

The law highlights the evolving landscape of media consumption and the need for regulatory frameworks that adapt to new technologies. It raises questions about the balance between consumer protection and the operational capabilities of streaming services. Additionally, the law reflects broader societal concerns about media consumption and its impact on daily life, particularly in family settings. As streaming services continue to grow, similar regulatory measures may emerge to address other aspects of digital media consumption, such as data privacy and content moderation.