The Canadian government will instruct the broadcast and telecommunications regulator to reconsider its recent decision to increase the financial contributions that streaming services such as Netflix must allocate to Canadian content. The Heritage Department expressed concerns that the new requirements by the Canadian Radio-television and Telecommunications Commission (CRTC) could result in higher costs for Canadian consumers.
Prime Minister Mark Carney emphasized the importance of not burdening Canadians with additional costs during a meeting with the cabinet. The government announced a $600 million investment to support Canada’s audio and audiovisual sectors, aiming to maintain accessibility and affordability of cultural content for all citizens.
The Online Streaming Act, enacted in 2023 under the previous Trudeau administration, empowered the CRTC to mandate streaming companies with over $25 million in annual Canadian revenue to contribute a portion towards Canadian content creation, including movies, television, and local news. Initially set at five percent, the CRTC raised this contribution to 15 percent last month.
In response to the situation, Ottawa will issue a new policy directive to the CRTC to modify the implementation of the Online Streaming Act. The law has been highlighted as a trade issue by the Trump administration as part of ongoing trade negotiations between the two countries.
The Motion Picture Association, representing U.S. streaming platforms, urged the cabinet to reconsider its stance, while U.S. Ambassador to Canada Pete Hoekstra welcomed the decision to review the contribution increase, emphasizing the importance of a fair framework for American firms to invest in Canada’s creative sector.
Although cabinet does not have direct authority to overturn the regulator’s decisions, it can provide broad directives to the CRTC on implementing the Broadcasting Act. The CRTC confirmed its awareness of the government’s intention to adjust the act’s implementation and stated readiness to review any new policy directions.
Minister of Identity and Culture Marc Miller acknowledged the Online Streaming Act’s inclusion as a trade irritant by the U.S. and highlighted the financial challenges faced by the industry. Miller revealed that the government is evaluating its directive to the CRTC, ensuring that platforms continue to contribute to Canadian content.
Regarding the timing of the review coinciding with U.S. trade negotiations, Miller described it as coincidental and refrained from providing specific details about the new directive during an interview with CBC’s Power & Politics.