The federal government plans to remove the financial contribution obligation for online streamers, as outlined in a court document. Instead of the current requirement set by the CRTC, the government intends to provide funding to replace these contributions, according to the attorney general’s office in a document dated July 17.
However, the Canadian Association of Broadcasters expressed skepticism, noting a discrepancy between the government’s message and what they have heard. Kevin Desjardins, the association’s president, emphasized the need for caution in interpreting the communication between the court and a respondent.
Culture Minister Marc Miller’s office declined to comment on whether the contribution requirement elimination would be permanent or temporary. The government is in the process of developing a new policy direction following the CRTC’s decision to raise contributions for major streaming services to 15% of Canadian revenue.
The move to replace the contributions with government funding comes after the passage of the Online Streaming Act in 2023, which introduced the so-called “Netflix tax.” The government has announced plans to issue a new policy directive to the CRTC, with $600 million in annual industry funding to support Canadian content.
Despite the reevaluation of the contribution requirement, the United States Trade Representative recently expressed skepticism about Canada’s actions, stating that Canada may not receive recognition for the change. Trade discussions between Canada and the U.S. continue, with Trade Minister Dominic LeBlanc visiting Washington amid looming tariff threats from U.S. President Donald Trump.
Prime Minister Mark Carney clarified that the decision to alter streamer contributions was made two months prior, citing concerns about affordability for Canadians. The Canadian Media Producers Association underscored the importance of foreign streamers investing in Canadian content, emphasizing the government’s responsibility to uphold this support.
While the government looks to reshape its policy direction, various political figures have voiced contrasting views on the implications of removing contribution requirements for streamers. Opposition parties have raised concerns about subsidizing large U.S. tech and media companies and the potential impact on the Canadian media industry.