The Canadian government plans to instruct the broadcast and telecommunications regulator to reconsider its recent decision to triple the financial contributions that streaming platforms such as Netflix are required to make towards Canadian content. The Department of Heritage stated that the new obligations imposed by the Canadian Radio-television and Telecommunications Commission (CRTC) could lead to increased costs for consumers. Prime Minister Mark Carney emphasized the importance of not burdening Canadians with higher expenses during a meeting with the cabinet.
In response, the government announced a $600 million investment aimed at providing immediate support and stability to Canada’s audio and audiovisual industries, ensuring that cultural content remains accessible and affordable to all Canadians. The Online Streaming Act, enacted in 2023 under the previous Trudeau administration, granted the CRTC the authority to mandate that streaming companies generating at least $25 million in annual Canadian revenue allocate a portion of their earnings to support the development of Canadian content, including films, TV shows, and local news.
Initially set at five percent, the CRTC raised the required contribution to 15 percent last month. The government will issue a revised policy directive to the CRTC regarding the implementation of the Online Streaming Act. The legislation has been identified by the Trump administration as a trade concern as part of the ongoing review of the free trade agreement between the two countries.
The Motion Picture Association, representing U.S. streaming services, urged the cabinet to reconsider its position. U.S. Ambassador to Canada Pete Hoekstra welcomed the decision to review the contribution hike, emphasizing the importance of facilitating American investment in Canada’s creative sector through a fair and reasonable regulatory framework. While the cabinet lacks direct authority to overturn the CRTC’s decisions, it can provide guidance on the broader implementation of the Broadcasting Act.
The CRTC acknowledged the forthcoming directive from the government to adjust the implementation of the Online Streaming Act and expressed readiness to review any new policy directions. Minister of Identity and Culture Marc Miller noted the financial challenges facing the industry and emphasized the ongoing commitment of platforms to contribute to Canadian content. The minister assured that the review’s timing amid U.S. trade negotiations was coincidental and reiterated the government’s support for the cultural sector.