What's Happening?
California Governor Gavin Newsom has signed legislation aimed at regulating the volume of commercials on streaming platforms such as Netflix, Hulu, and HBO Max. This new law addresses a gap left by the 2010 Commercial Advertisement Loudness Mitigation (CALM) Act, which did not cover streaming services due to their nascent status at the time. The law mandates that streaming ads must not be louder than the accompanying video content. The initiative was inspired by State Senator Tom Umberg's staffer, who struggled to put their baby to sleep due to loud ads. The law faced opposition from entertainment industry groups, citing the complexity of controlling ad volume from multiple sources. The legislation is set to take effect in July 2026.
Why It's Important?
This law is significant as it could set a precedent for national standards in regulating streaming ad volumes, given California's influence and its ties to the entertainment industry. It addresses consumer complaints about excessively loud ads, which have been increasing according to the Federal Communications Commission (FCC). The regulation could lead to changes in how streaming platforms manage ad content, potentially affecting advertising strategies and revenue models. Consumers stand to benefit from a more consistent viewing experience, while streaming services may need to adapt their operations to comply with the new law.
What's Next?
The law's implementation in July 2026 will require streaming platforms to adjust their ad delivery systems to comply with the new volume regulations. This may involve technological changes or negotiations with advertisers to ensure compliance. The entertainment industry may continue to lobby against the law, arguing for more flexible solutions. The FCC's ongoing review of its rules could lead to further federal regulations, potentially harmonizing standards across the country.
Beyond the Headlines
The law highlights the evolving nature of media consumption and the need for regulations to keep pace with technological advancements. It raises questions about the balance between consumer protection and industry innovation. The legislation could prompt discussions on broader advertising practices and consumer rights in the digital age.
