The government plans to instruct the broadcast and telecommunications regulator to reconsider its decision to triple the financial contributions that streaming services like Netflix must make to support Canadian content. The Heritage Department expressed concerns that the increased costs imposed on streamers could lead to higher prices for Canadian consumers.
Prime Minister Mark Carney emphasized the need to avoid raising costs for Canadians during a meeting with his cabinet. Additionally, the government announced a $600 million investment to provide immediate support to Canada’s audio and audiovisual sectors, aiming to maintain accessibility and affordability of cultural content for all Canadians.
The Online Streaming Act, enacted in 2023 under the previous Trudeau government, empowered the CRTC to mandate that streaming companies with annual Canadian revenue exceeding $25 million allocate a portion towards creating Canadian content such as movies, television shows, and local news. Initially set at five percent, the CRTC raised this contribution to 15 percent last month.
As a response, Ottawa will issue a new policy directive to the CRTC for adjusting the implementation of the Online Streaming Act. The Motion Picture Association, representing U.S. streamers, and the U.S. Ambassador to Canada, Pete Hoekstra, welcomed the decision to review the contribution increase, highlighting the importance of a fair framework for investment in Canada’s creative sector.
While the Broadcasting Act does not allow the cabinet to directly overturn regulator decisions, it can provide broad directives for implementation. The CRTC confirmed its awareness of the forthcoming government directive to adjust the Act’s implementation and expressed readiness to review any new policy directions.
Minister of Identity and Culture Marc Miller acknowledged concerns raised by U.S. Trade Representative Jamieson Greer over the Online Streaming Act but emphasized the financial challenges faced by the industry. Miller stated that the government is reviewing its upcoming directive to the CRTC, ensuring that platforms continue to contribute to Canadian content without absolving their responsibilities to the sector. The timing of the review amid U.S. trade negotiations was deemed coincidental by Miller during an interview with CBC’s Power & Politics.