Canada is set to reverse a policy that required U. S. streaming services to contribute financially to the Canadian domestic broadcasting industry. A recent court filing revealed the government's intention to eliminate these mandatory contributions from platforms like Netflix, Disney+, and Amazon Prime Video. This marks a significant shift from nearly a decade of policy aimed at ensuring foreign digital giants supported Canadian television and film production.
The move comes after Prime Minister Mark Carney's government had previously asked the broadcast regulator, the CRTC, to re-examine an order that would have increased contributions from streamers to 15% of their Canadian revenue, up from 5%. U. S. officials had expressed concerns that this regulatory ruling constituted a trade barrier. In a letter to the Federal Court of Appeal, the government stated its intention to "eliminate the base contribution requirement on streaming services and to provide government funding to replace those contributions."
This policy shift is accompanied by a commitment to provide government funding to support the domestic content sector. Minister of Canadian Heritage Marc Miller had previously announced approximately $430 million to bolster Canada's music, television, and film industries. The government plans to make these intentions public through a note in the Canada Gazette.
The Online Streaming Act, which received Royal Assent in April 2023, initially aimed to ensure online streaming services supported Canadian and Indigenous content. The act empowered the CRTC to regulate these services and impose conditions, including Canadian content obligations. However, the evolving landscape and pushback from U. S. stakeholders appear to have prompted this latest policy adjustment by the Canadian government.
