The federal government plans to remove the financial contribution obligation for online streamers set by the CRTC and substitute it with government funding, as per a court document. The attorney general’s office stated that the intention is to eliminate the base contribution requirement and replace it with government funding.
However, the Canadian Association of Broadcasters expressed skepticism regarding this shift, stating that the government’s message does not align with what they have heard. Kevin Desjardins, the association’s president, emphasized the need for caution in drawing conclusions from this communication.
Culture Minister Marc Miller’s office declined to provide further details on the government’s position. They indicated ongoing development of a new policy direction and refrained from elaborating on the permanency of eliminating the contribution requirement.
In early June, the government announced a new policy directive to the CRTC following the regulator’s raise in contributions for large streaming services. The government also disclosed plans to offer $600 million in annual funding to the industry instead of the increased contributions, often referred to as the “Netflix tax,” introduced through the Online Streaming Act.
The court document from July 17 outlined the government’s intent to issue the new policy directive to the CRTC in the upcoming weeks. This submission was part of a Federal Court of Appeal challenge by streamers against the CRTC’s regulations.
While the U.S. identified the Online Streaming Act as a trade concern, the United States Trade Representative remarked that Canada may not receive acknowledgment for this decision. Trade Minister Dominic LeBlanc engaged in discussions in Washington following threats of new tariffs by U.S. President Donald Trump.
Prime Minister Mark Carney confirmed that the decision to alter streamer contributions was made months ago due to affordability concerns. Reynold Mastin, president of the Canadian Media Producers Association, emphasized the importance of requiring foreign streamers to reinvest revenue from Canadian audiences into Canadian content.
Various stakeholders have voiced their opinions on the government’s decision. However, NDP MP Heather McPherson criticized the move as canceling fees for U.S. companies at the expense of Canadian media. Conservative culture critic Rachael Thomas opposed the CRTC’s contribution rules, accusing the Liberals of burdening Canadians with subsidizing American tech and media companies.