Video-streaming services delivering content to the state of California will soon be required to change the way they handle advertising to alleviate one of viewers’ biggest annoyances: Loud commercials. Thanks to Senate Bill 576, signed into law in October 2025 and taking effect on July 1, 2026, commercials can no longer be noticeably louder than the surrounding program.

Broadcast and cable television providers have been adhering to the Commercial Advertisement Loudness Mitigation Act—better known as the CALM Act —since it was signed into law in 2010 to address this same issue, but it has not applied to streaming services.

The new legislation closes that gap, requiring streaming platforms to follow the same practices outlined in CALM, which itself is based on the recommended practices outlined in ATSC A/85, ensuring that ads are delivered at the same volume as the rest of the program content.

Are You Being Served?
To understand how this impacts streaming services, it helps to look at how ads are actually delivered on these platforms. The two main approaches are client-side ad insertion (CSID) and server-side ad insertion (SSID).

Client-side means the ads are added into the stream by the app or device itself. CSID is flexible and allows for targeted ads, but controlling levels is challenging, as every device handles playback differently.

Server-side, on the other hand, stitches ads into the stream before it ever reaches the viewer. SSID behaves more predictably and is often preferred as it helps counter ad blockers, but it introduces its own challenges since different vendors use different encoding pipelines, which can result in inconsistent loudness.

Streaming providers employ these models in different ways. National broadcasters like NBC, CBS, ABC, and Fox already comply with the CALM Act for their traditional broadcasts, so extending those practices to their streaming apps is a natural next step.

Major streaming services such as Netflix, Hulu, Disney+, and Amazon Prime Video are also affected. Netflix recently introduced an ad-supported tier, Hulu and Disney+ lean heavily on server-side insertion, and Amazon Prime’s hybrid model mixes subscription and ad-supported content.

Local broadcasters face a unique challenge, as they often depend on third-party server-side ad insertion vendors for their streams, meaning they will need to ensure those partners are meeting California’s new requirements.

The biggest impact may be felt by FAST (Free Ad-Supported Television Services) channels like Pluto TV, Tubi, and Freevee. These platforms rely almost entirely on server-side ad insertion, pulling ads from a variety of suppliers, making them especially vulnerable to loudness inconsistencies.

Video-on-demand providers face their own challenges, as many of them use client-side ad insertion that requires normalization at the device level. This approach makes consistent loudness more difficult and requires VOD platforms to ensure loudness metadata is included and preserved so that the playback device can adjust levels accordingly.

Overcoming Technical Challenges
The technical hurdles to comply with this new regulation are significant. Different server-side ad insertion providers use different encoding methods, which means ads can arrive with varying loudness levels. Ads themselves often come from multiple sources, each mastered to different standards.

On top of that, playback devices—from smart TVs to mobile phones—interpret audio differently, which makes it even harder to guarantee a consistent experience. Content created before the legislation was enacted adds another wrinkle, since it may not meet modern loudness standards and would need to be reprocessed.

So how do streaming platforms tackle this? The first step is becoming familiar with ATSC A/85 recommended practices, which guide CALM compliance and, in turn, adherence to the new streaming regulations. Streaming providers will need to integrate file-based and, in some cases, real-time processing and loudness control into their server-side commercial insertion workflow, just as they currently do for their primary programming.

For client-side insertion, ensuring that loudness metadata is included and maintained is a promising option. Measuring loudness at ingest (to determine the need for corrective measures) and downstream (as a final QC step before distribution) using the latest iteration of ITU-R BS.1770 is critically important.

California’s new law is a big step toward making streaming feel more polished and viewer-friendly. For national broadcasters, it’s an extension of practices they already follow. For FAST channels and VOD providers, it’s a wake-up call to tighten up their workflows.

The challenges are real, but the solutions are within reach. By adhering to established loudness measurement, enforcing metadata-driven normalization, and holding vendors accountable, streaming platforms can not only comply with the law but also deliver a smoother, more enjoyable experience for viewers.

The California State Legislature has passed a new law that extends federal TV-commercial volume rules to cover streaming.

On Tuesday, Gov. Gavin Newsom signed SB 576 by Sen. Thomas Umberg (D-Santa Ana) to turn down the volume of commercials that rise to a level louder than the primary video content being watched.

When Congress passed the Commercial Advertisement Loudness Mitigation (CALM) Act in 2010, the law only applied to broadcast television stations and cable operators. Gov. Newsom noted that the state’s new rules extend those limits now to streaming services, which have skyrocketed in popularity over the past decade.

“We heard Californians loud and clear, and what’s clear is that they don’t want commercials at a volume any louder than the level at which they were previously enjoying a program,” Newsom said. “By signing SB 576, California is dialing down this inconvenience across streaming platforms, which had previously not been subject to commercial volume regulations passed by Congress in 2010.”

“This bill was inspired by baby Samantha and every exhausted parent who’s finally gotten a baby to sleep, only to have a blaring streaming ad undo all that hard work,” said bill sponsor Umberg. “SB 576 brings some much-needed peace and quiet to California households by making sure streaming ads aren’t louder than the shows we actually want to watch.”

Even though many critics say the current laws on the books are not being adequately enforced, opponents argued that the new rules will be even harder to enforce.

“Unlike in the broadcasting [and] cable network environment, where advertisers sell their ads directly to the networks, streaming ads come from several different sources and cannot necessarily or practically be controlled by streaming platforms,” Melissa Patack, the MPA’s vice president of state government affairs, testified last summer.

Earlier this year, the FCC issued a Notice of Public Rulemaking (NPRM), seeking public input on the effectiveness of the current rules. That NPRM acknowledged streaming but did not suggest that the rules be extended. Closing date for public comments was in May, the FCC has not taken any more action since.

The law, which covers television broadcast stations, cable operators, and other multichannel video programming distributors in addition to streaming services, was so simply written that we feel comfortable publishing it verbatim:

“Existing law regulates various businesses to, among other things, preserve and regulate competition, prohibit unfair trade practices, and regulate advertising.

“Existing federal law requires the Federal Communications Commission to develop regulations that require commercials to have the same average volume as the programs they accompany. The federal regulations apply to television broadcast stations, cable operators, and other multichannel video programming distributors.

“This bill would prohibit, on and after July 1, 2026, a video streaming service, as defined, that serves consumers in the state from transmitting the audio of commercial advertisements louder than the video content the advertisements accompany, as specified. The bill would state that it does not create a private right of action.”

Costa Nikols, executive team strategy adviser, Media & Entertainment, for Telos Alliance, said that since the passage of the federal CALM Act, television has drastically changed to on-demand and OTT platforms where audio levels for commercials remain unregulated.

“California’s new streaming regulations mark an important first step toward improving the viewer experience,” Nikols said. “The industry now has an opportunity to apply the same discipline to streaming audio that transformed broadcast. Audio processing that can help broadcasters with streaming content loudness levels will be in increased focus as companies push to maintain dialogue intelligibility and quality. We saw it before with broadcast—the right technology is already in place, so the industry should feel ready to do it again.”

In an effort to maintain its status as the “entertainment capital of the world,” California Gov. Gavin Newsom has proposed a more than doubling of the state’s Film & Television Tax Credit Program from the current $330 million allocation to $750 million annually.

“This ambitious expansion would position California as the top state for capped film incentive programs, surpassing other states like New York,” Newsom said in announcing the expansion. “California is the entertainment capital of the world, rooted in decades of creativity, innovation and unparalleled talent. Expanding this program will help keep production here at home, generate thousands of good-paying jobs and strengthen the vital link between our communities and the state’s iconic film and TV industry.”

In recent years, the state has seen a decrease in tax revenues from film and TV production, partly due to the double whammy of the pandemic and the almost year-long actors and writers strike that crippled the industry in 2023. But the governor’s office attributed the main reason for the decline to the limits of the current program.

“This program has been oversubscribed year after year, with more productions applying than can be accommodated under the current cap,” Newsom said. “Between 2020 and 2024, data shows California lost production spending due to limited tax-credit funding and increased competition in other states and countries, directly impacting state jobs and local economies​​.

“In recent years, projects that were unable to secure California’s tax credits and moved to other locations as a result contributed to significant economic losses, with an estimated 71% of rejected projects subsequently filming out-of-state,” the governor added.

This past summer, overall production in greater Los Angeles declined by 5% to 5,048 shoot days, according to the latest report from FilmLA, the film office for the city and county of Los Angeles. “The lackluster quarter was the weakest so far in 2024, and surprising for its failure to meet or exceed numbers shared at this time a year ago,” [during the strike],” FilmLA said.

FilmLA President Paul Audley voiced his advocacy for the program earlier this month and urged it to be updated.

“California’s film incentive is a proven jobs creator that studies show provides a net positive return on every allocated dollar,” he said. “What the program lacks is funding and eligibility criteria that reflect the outputs of the industry in 2024. The program’s structure and management through the California Film Commission—these are excellent. But just as our competitors continue to innovate, California must do the same.”

According to a study of California’s film incentive, for every dollar of tax credits approved, the program generated at least $24.40 in output, $16.14 in GDP, $8.60 in wages and $1.07 in initial state and local tax revenue from production. Since its inception in 2009, California’s Film & Television Tax Credit Program has generated more than $26 billion in economic activity and supported more than 197,000 cast and crew jobs across the state, according to the governor’s office.

Tax credits will become refundable for the first time since the program’s inception in 2009, beginning with Program 4.0 set to commence on July 1, 2025.

Los Angeles Mayor Karen Bass added her support. “Hollywood is the cornerstone of this city and our economy and our message to the industry today is clear—we have your back,” she said. “When I was Speaker of the California State Assembly, I worked to support leaders like now-Councilman Paul Krekorian to create the film tax credit. Despite the economy being in a difficult spot, we knew that the industry needed support and if we could at least start the program, then we could grow it. Today I’m proud to stand with Governor Newsom and industry leaders to continue this important work supporting this legacy industry.”

SACRAMENTO—Together with Senator Anthony Portantino (D-La Cañada Flintridge), entertainment unions and the California Film Commission, Governor Gavin Newsom has come out in support for SB 485, which would invest $1.65 billion in the state’s Film & Television Tax Credit Program to extend it for an additional five years, through 2030. 

This program allocates $330 million per year in tax credits for the industry.

The announcement also noted that hundreds of showrunners have demanded that production companies implement protocols to protect pregnant employees in states where abortion is outlawed.

“As other states rollback people’s rights, California will continue to protect fundamental freedoms for all and welcome businesses that stand up for their employees,” said Governor Newsom. “Extending this program will help ensure California’s world-renowned entertainment industry continues to drive economic growth with good jobs and a diverse, inclusive workforce.”

Supporters of the measure noted that the state’s Film & Television Tax Credit Program has been shown to generate $24 in economic activity for every $1 invested – spurring tens of billions of dollars in economic output, helping create over 110,000 jobs, and bringing shows and films to California.

The Entertainment Union Coalition has also come out in favor of the legislation. 

"Governor Newsom gave the 163,000 women and men we represent who work in the California film and television industry a lifeline,” the Coalition said in a statement. “With the announcement that he will sign SB 485 into law, extending the California Film & Television Tax Credit Program to 2030, Governor Newsom has assured a future where our members can continue to work at jobs they love, in the state they call home, and be present as members of their families and communities.”

The Members of the Entertainment Union Coalition (EUC) are: California IATSE Council (CIC); Directors Guild of America, LiUNA! Local 724, SAG AFTRA, and Teamsters Local 399  

LOS ANGELES—A pair of earthquakes hit the Southern California region late last week, with the biggest registering as a 7.1 on the Richter scale. The earthquake hit at 8:21 p.m. PT on Friday, July 5, and was captured live during a broadcast of CBS Los Angeles’ local newscast. Anchors Sarah Donchey and Juan Fernandez give their viewers a quick rundown of what is happening in their studio before Donchey says they should take cover under their desk and Fernandez cuts to break. A video of the broadcast when the earthquake hit can be viewed here.

Elsewhere in Los Angeles, a broadcast of the Dodgers playing the San Diego Padres also captured live footage of the quake, and while the broadcasters make note of it the players seemed not to mind, continuing to play as no delay was called.

While the earthquake, which had an epicenter in Ridgecrest, Calif., resulted in a good bit of damage, no deaths were reported as a result.

Find out more about the broadcast and the earthquake’s impact here.