The Motion Picture Association, which includes Netflix, Disney, Amazon Prime Video, and Paramount, and the Streaming Innovation Alliance, which includes Netflix, Disney, Peacock, and Pluto TV, opposed the bill. According to a September 2025 state assembly analysis (PDF), the groups argued that “many” streaming services were already “trying to manage the volume of advertisements coming from server-side ad insertion, which may be inconsistent with the sound of the programs”. The amount of server-side advertisements may vary due to companies using different encoding pipelines.
Additionally, as opposition groups previously pointed out, streaming services must compete with a wide range of output devices, including TVs, tablets, and phones.
Reporting on how streaming services could comply with the California law, trade publication TV Tech in December reported: “Streaming providers will need to integrate file-based and, in some cases, real-time processing and loudness controls into their server-side commercial insertion workflow, as they currently do for their primary programming.”
The difficulties in managing the sound of commercials are highlighted when considering the dissatisfaction that remains among broadcast, cable and satellite audiences. The FCC said it received “at least” 1,700 complaints about it in 2024, about 825 in 2023, and about 750 in 2022.
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