The federal government plans to remove the financial contribution requirement for online streamers mandated by the CRTC and will instead provide government funding, as stated in a court document. The attorney general’s office mentioned that the government aims to do away with the base contribution requirement on streaming services and substitute it with government funding, according to the document dated July 17. However, the Canadian Association of Broadcasters expressed that the message they received does not align with the government’s stated intention. Kevin Desjardins, the association’s president, emphasized that it would be premature to draw definitive conclusions based on this communication between the court and one of the respondents.
Culture Minister Marc Miller’s office declined to comment on clarifying the government’s position. When asked whether the government intends to eliminate the contribution requirement permanently or temporarily, a spokesperson did not provide a response. The government had announced in June its plan to issue a new policy directive to the CRTC after the regulator increased contributions for major streaming services from five percent to fifteen percent of Canadian revenue. The government also committed to offering $600 million in annual funding to the industry instead of the contributions, often referred to as the “Netflix tax,” following the passage of the Online Streaming Act in 2023.
The court document from July 17 mentioned that the government would release the new policy directive to the CRTC in the upcoming weeks. This was submitted as part of a Federal Court of Appeal challenge by streamers against the CRTC’s regulations. Despite a change in direction by Ottawa following the U.S. labeling the Online Streaming Act as a trade issue, the U.S. Trade Representative recently indicated that Canada may not receive credit for this action. Canada-U.S. Trade Minister Dominic LeBlanc is currently in Washington after U.S. President Donald Trump threatened new tariffs on various Canadian goods.
During a news conference, Prime Minister Mark Carney stated that the decision to cease streamer contributions was made two months ago due to concerns about affordability. Reynolds Mastin, president and CEO of the Canadian Media Producers Association, emphasized the importance of foreign streamers investing back into Canadian content. He highlighted that the Canadian government must continue advocating for Canadian stories and culture.
Desjardins mentioned that it appears the government’s long-term plan is for streamers operating in Canada to contribute back into the system in some manner. He noted that while the government cannot entirely remove contributions from foreign streamers and retain them for Canadian entities, a balance needs to be struck. Hélène Messier, francophone co-chair of the Coalition for the Diversity of Cultural Expressions, stressed the necessity for the government to guarantee funding for the audiovisual and music sectors, estimating it at no less than $200 million annually.
NDP MP Heather McPherson criticized the Liberals for canceling fees imposed on U.S. companies, stating that it will require Canadians to subsidize American tech and media firms competing directly with Canadian media. Conservative culture critic Rachael Thomas voiced opposition to the CRTC’s rules on streamer contributions, accusing the Liberals of absolving American streamers while burdening Canadians with a significant subsidy.