The federal government plans to remove the financial contribution obligation for streamers established by the CRTC and intends to substitute it with government funding, as stated in a court filing. The attorney general’s office conveyed that the government aims to abolish the base contribution requirement for streaming services and introduce government funding to replace these contributions, in a document dated July 17.
However, the Canadian Association of Broadcasters expressed a different interpretation, indicating a misalignment between the government’s message and their understanding. Kevin Desjardins, the association’s president, emphasized caution in drawing definitive conclusions from this communication, highlighting a discrepancy with the government’s stance.
The Culture Minister Marc Miller’s office declined to comment on clarifying the government’s position. When questioned about the permanency of the elimination of the contribution requirement, a spokesperson stated that no further details could be shared at the moment.
Earlier in June, the government announced its decision to issue a new policy directive to the CRTC following the regulator’s increase in contributions for major streaming services from five percent to fifteen percent of Canadian revenue. The government also committed to providing the industry with $600 million in annual funding, in place of these contributions, commonly referred to as the “Netflix tax,” enacted after the passage of the Liberal government’s Online Streaming Act in 2023.
The court document from July 17 mentioned the forthcoming publication of the new policy directive to the CRTC by the government. This document was submitted as part of a challenge in the Federal Court of Appeal by streamers against the CRTC’s regulations.
Meanwhile, a recent statement from the United States Trade Representative indicated that Canada might not receive full acknowledgment for its decision to address the trade concerns related to the Online Streaming Act. In response, Canada-U.S. Trade Minister Dominic LeBlanc is currently engaged in discussions in Washington following threats of new tariffs on Canadian goods by U.S. President Donald Trump.
During a news conference, Prime Minister Mark Carney affirmed that the decision to alter streamer contributions was made two months prior due to affordability concerns. Reynolds Mastin, president of the Canadian Media Producers Association, emphasized the importance of foreign streamers reinvesting a portion of their revenue from Canadian audiences into Canadian content.
Stakeholders such as the Coalition for the Diversity of Cultural Expressions and political figures like NDP MP Heather McPherson and Conservative culture critic Rachael Thomas shared contrasting views on the government’s actions, underscoring concerns about the impact on Canadian media and content production.