The federal government plans to remove the financial contribution requirement for online streamers previously set by the CRTC and intends to substitute it with government funding, as stated in a court document. The attorney general’s office conveyed this decision in a document dated July 17, stating that the government aims to abolish the base contribution requirement for streaming services and allocate government funding in its place.
However, the Canadian Association of Broadcasters expressed a different perspective, noting a discrepancy between the content of the letter and their understanding of the government’s position. Kevin Desjardins, the association’s president, emphasized caution in drawing definitive conclusions from this communication, indicating that it remains premature to interpret the situation conclusively.
Culture Minister Marc Miller’s office declined to provide further clarity on the government’s stance when requested. The spokesperson did not address inquiries regarding whether the elimination of the contribution requirement would be permanent or temporary, stating that the government is currently developing a new policy direction without additional details to disclose at this time.
In early June, the government announced its intention to issue a new policy directive to the CRTC following the regulator’s decision to raise contributions for major streaming services from five percent to 15 percent of Canadian revenue. Concurrently, the government proposed providing the industry with $600 million in annual funding, pivoting from the previously implemented contributions dubbed the “Netflix tax” following the passage of the Liberal government’s Online Streaming Act in 2023.
The court document from July 17 affirmed the government’s commitment to release the new policy directive to the CRTC in the upcoming weeks. The submission was made in the context of a Federal Court of Appeal challenge by streamers against the CRTC’s regulations.
While the U.S. raised concerns regarding the Online Streaming Act as a trade issue, the United States Trade Representative recently remarked that Canada may not receive full acknowledgment for its actions. Amidst this, Canada-U.S. Trade Minister Dominic LeBlanc visited Washington following President Donald Trump’s threat of imposing new tariffs on various Canadian goods.
During a news conference, Prime Minister Mark Carney reiterated that the decision to modify streamer contributions was made two months earlier, emphasizing considerations of affordability as the primary driver for the change. This decision was welcomed by Reynolds Mastin, president and CEO of the Canadian Media Producers Association, who underlined the importance of maintaining support for Canadian content through foreign streamer investments.
Various stakeholders, including the Coalition for the Diversity of Cultural Expressions and political representatives, have voiced differing opinions on the government’s decision to adjust the contribution requirements for streamers. The debate continues over the implications and long-term effects of the government’s shift in approach towards supporting Canadian media and content creation.