California Enacts Law to Curb Loud Ads on Streaming Platforms

California Enacts Law to Regulate Loud Commercials on Streaming Platforms

California has introduced landmark legislation aimed at controlling the volume of advertisements on major streaming platforms including Netflix, Hulu, and Prime Video. Governor Gavin Newsom signed Senate Bill 576 into law on October 6, 2025, mandating that commercials must not exceed the audio volume of the content they accompany. The new regulation will take effect on July 1, 2026, ensuring that streaming services align their commercial audio levels with those of the programs viewers are watching. This move addresses widespread consumer complaints about disruptive, excessively loud ads.

Legislative Background and Intent

SB 576 is modeled closely after the federal Commercial Advertisement Loudness Mitigation (CALM) Act of 2010, which prohibited television commercials from being broadcast at volumes louder than the accompanying programming. Until now, streaming platforms have remained outside the scope of such regulations.

“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,” said Governor Newsom. “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.”

The law reflects a growing recognition of the disruptive effect that disproportionately loud ads have on viewers’ experience, especially in the streaming era where consumers expect a seamless and comfortable viewing environment.

Origins and Advocacy Behind SB 576

California State Senator Tom Umberg authored the bill, citing a personal anecdote involving his legislative director’s newborn child being disturbed by loud streaming commercials.

“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,” Senator Umberg remarked. “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.”

The legislation highlights the importance of consumer comfort and the need for regulatory parity between traditional broadcast media and digital streaming services.

Potential Industry and Market Impact

Given California’s pivotal role in the entertainment and technology sectors, this law is expected to set a precedent that may influence streaming platforms’ policies nationwide. Companies operating in the streaming ecosystem will need to implement technical measures to monitor and adjust commercial audio levels accordingly. The regulatory alignment could also prompt discussions about federal standards for streaming ad volumes, further standardizing the viewer experience across platforms.

FinOracleAI — Market View

The enactment of SB 576 marks a significant regulatory step in addressing consumer grievances related to streaming ad loudness. This legislation introduces a new compliance requirement for streaming services, potentially increasing operational costs but improving user experience.

• Opportunities: Enhanced customer satisfaction may reduce subscription cancellations and improve brand loyalty across streaming platforms.
• Risks: Technical implementation challenges and monitoring costs could impact smaller streaming providers more significantly.
• Potential ripple effect leading to broader adoption of similar regulations in other states or at the federal level.
• Pressure on streaming services to innovate audio normalization technologies.

Impact: This law is expected to positively influence the streaming industry by standardizing ad volumes and enhancing viewer experience, setting a new regulatory benchmark for digital content providers.