The federal government plans to remove the financial contribution obligation for online streamers imposed by the CRTC and intends to substitute it with government funding, as stated in a court filing. The attorney general’s office mentioned in a document dated July 17 that the government aims to eliminate the base contribution requirement for streaming services and replace it with government funding.
However, the Canadian Association of Broadcasters expressed diverging views, indicating that the language in the document does not align with their understanding from the government. The association’s president, Kevin Desjardins, emphasized caution in drawing definitive conclusions from this communication between the court and a respondent.
Culture Minister Marc Miller’s office declined to provide further details on the government’s position when pressed for clarification. The spokesperson did not respond to inquiries regarding whether the elimination of the contribution requirement would be permanent or temporary. Hermine Landry mentioned in an email that the government is currently developing a new policy direction and has no additional information to share.
In early June, the government announced its intention to issue a new policy directive to the CRTC following the regulator’s decision to increase contributions for major streaming platforms from five percent to fifteen percent of Canadian revenue. The government also disclosed plans to allocate $600 million annually to the industry in lieu of these contributions, famously referred to as the “Netflix tax,” which resulted from the passage of the Online Streaming Act by the Liberal government in 2023.
The court document from July 17 disclosed that the government would release the new policy directive to the CRTC in the forthcoming weeks. This submission was part of a Federal Court of Appeal challenge initiated by streamers against the CRTC’s regulations.
Despite changing course subsequent to the U.S.’s objection to the Online Streaming Act as a trade impediment, the United States Trade Representative indicated that Canada may not receive full acknowledgment for this alteration. Canada-U.S. Trade Minister Dominic LeBlanc is presently in Washington, particularly 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 eliminate streamer contributions was made “two months ago” due to concerns about affordability. Reynolds Mastin, president and CEO of the Canadian Media Producers Association, highlighted the need for foreign streamers to reinvest part of their revenues derived from Canadian audiences back into Canadian content.
Desjardins indicated that it appears the government’s long-term objective is for streamers operating in Canada to contribute back to the system, suggesting that total elimination of contributions from foreign streamers while maintaining them for Canadian entities is improbable. Hélène Messier of the Coalition for the Diversity of Cultural Expressions emphasized the necessity for the government to ensure permanent funding equivalent to or surpassing the anticipated $200 million annual base contribution requirement.
NDP MP Heather McPherson criticized the Liberals for canceling fees charged to U.S. companies, implying that Canadians would have to subsidize American tech and media firms competing directly with Canadian media. Conservative culture critic Rachael Thomas opposed the CRTC’s regulations imposing contributions on streamers, asserting that the Liberals are absolving American streamers while burdening Canadians with a substantial $600 million subsidy.