The Canadian government plans to request the broadcasting and telecommunications regulator to reconsider its recent decision to increase the financial contributions that streaming services such as Netflix must allocate to Canadian content. The Heritage Department stated that the new requirements set by the Canadian Radio-television and Telecommunications Commission (CRTC) could potentially result in higher costs for Canadian consumers.
Prime Minister Mark Carney emphasized the importance of not increasing costs for Canadians during a meeting with his cabinet. In response to the situation, the government announced a $600 million investment to offer immediate support and stability to Canada’s audio and audiovisual sectors, ensuring the accessibility and affordability of culture for all Canadians.
The Online Streaming Act, which was enacted in 2023 under the former Trudeau government, empowered the CRTC to mandate that streaming companies generating at least $25 million in annual Canadian revenue allocate a portion towards supporting Canadian content, including movies, television, and local news. Initially set at five percent, the CRTC raised this contribution requirement to 15 percent last month, leading to the government’s decision to issue a new policy direction for the CRTC to adjust its implementation of the Online Streaming Act.
The Motion Picture Association, representing U.S. streamers, urged the cabinet to reconsider its approach, while U.S. Ambassador to Canada Pete Hoekstra welcomed the decision to review the contribution increase. Although the Broadcasting Act does not grant cabinet the authority to directly reverse the regulator’s decisions, it can guide the CRTC on the broad implementation of the act.
In response to the government’s directive, the CRTC confirmed its awareness of the upcoming adjustments to the implementation of the Online Streaming Act. Minister of Identity and Culture Marc Miller acknowledged the industry’s financial struggles and emphasized the ongoing obligation for platforms to contribute to Canadian content, despite potential changes in directives. Miller clarified that the review coinciding with U.S. trade negotiations was coincidental and emphasized the sector’s need for support.