California Implements Streaming Advertisement Volume Regulation Law
California will implement a new law on July 1, 2025, restricting streaming service advertisement volume to the same level as the main program content. While television broadcasting has had similar regulations since 2012, streaming services were excluded from this framework. This new law aims to close that regulatory gap at the state level.
California will implement a new law on July 1, 2025, that regulates advertisement volume on streaming services. This law restricts the volume of advertisements that play during video content viewing to a level equivalent to the main program.
This regulation emerged from long-standing viewer complaints. In television broadcasting, the Federal Communications Commission (FCC) implemented the "CALM Act" in 2012, regulating the volume of broadcast and cable television advertisements. However, as streaming services like Netflix and Hulu rapidly proliferated afterward, advertisements delivered over the internet remained outside the scope of traditional regulations. As viewing habits shifted from television to streaming, the issue of sudden volume increases was never resolved and instead carried over to new platforms.
California's new law represents an effort to fill this regulatory gap at the state level. Specifically, it prohibits streaming platforms from delivering advertisements at volumes that substantially exceed the volume of content before and after the ads. The law takes effect on July 1, 2025, and applies to service providers operating within the state.
The significance of this law extends beyond a simple "volume issue." Streaming advertisements continue to evolve through integration with AI-driven viewer targeting and dynamic ad insertion technology, making advertisement experience quality directly linked to platform competitiveness. In this context, the explicit codification of volume regulation as a consumer protection measure in state law indicates that the regulatory perspective on digital advertising as a whole is broadening.
Additionally, California possesses the largest state economy in the United States and hosts headquarters for numerous streaming and technology companies, including Netflix and Google. The state's regulations effectively have the potential to influence industry standards at the national level. Whether this law will spark discussions at the state or federal level remains a point of future interest.
For viewers, the new regulation may reduce the daily stress caused by sudden volume increases during streaming advertisement playback. Meanwhile, the advertising industry and platform operators will face technical compliance costs and regulatory requirements. Discussions surrounding digital advertising experience quality are expected to continue across various jurisdictions going forward.
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