The Canadian government will instruct the country’s broadcast and telecommunications regulator to reconsider its recent decision to increase the financial contributions that streaming services like Netflix must allocate to Canadian content. The Heritage Department announced on Wednesday that the Canadian Radio-television and Telecommunications Commission’s (CRTC) new regulations could lead to higher costs for Canadian consumers. Prime Minister Mark Carney emphasized that this is not the appropriate time to burden Canadians with increased expenses.
In response, the government disclosed a $600 million investment to support Canada’s audio and audiovisual sectors, ensuring the accessibility and affordability of the country’s cultural content. The Online Streaming Act, passed in 2023 during the previous Trudeau administration, empowered the CRTC to mandate streaming companies with over $25 million in annual Canadian revenue to contribute a portion towards the creation of Canadian content, including movies, television, and local news.
Initially set at five percent of a company’s Canadian revenue, the CRTC raised the contribution requirement to fifteen percent last month. The government will issue a new policy directive to the CRTC to modify the implementation of the Online Streaming Act. This law has been identified by the Trump administration as a trade concern as the two nations renegotiate their free trade agreement.
The Motion Picture Association, representing U.S. streaming platforms, urged the cabinet to reconsider its stance. U.S. Ambassador to Canada Pete Hoekstra welcomed the decision to review the contribution increase, highlighting the importance of a fair and supportive framework for American investments in Canada’s creative industry. While cabinet lacks the authority to directly reverse the regulator’s decisions, it can guide the CRTC on the broad application of the Broadcasting Act.
The CRTC confirmed its awareness of the government’s intention to adjust the implementation of the Online Streaming Act and stated readiness to review any new policy directions. Minister of Identity and Culture Marc Miller acknowledged the industry’s financial challenges and the need for assistance, emphasizing that platforms will still be required to contribute to Canadian content. Miller noted that the ongoing review coinciding with U.S. trade negotiations was coincidental.
