Canada and the United States are embroiled in a trade dispute that extends beyond traditional goods like dairy and car parts to also include the content displayed on streaming platforms like Netflix. According to a report by The Globe and Mail, U.S. negotiators requested that Canada eliminate the requirement for American streaming services to promote Canadian content, including French-language content. However, the Canadian government, led by Prime Minister Mark Carney, stood firm in defense of Canadian sovereignty, language protection, and cultural preservation, refusing to comply with the U.S. demand.
The conflict stems from a longstanding disagreement between Canadian authorities and American streaming giants over the promotion and support of Canadian content, known as Cancon. While traditional broadcasters have been obligated to promote Cancon, online streaming platforms like Netflix, YouTube, and Amazon Prime have not faced the same requirements. To address this disparity, the Canadian government introduced the Online Streaming Act in 2022, aiming to ensure that online streamers contribute to Canadian content creation in a manner similar to traditional broadcasters.
Despite opposition from American streaming companies, the legislation was passed in April 2023, delegating the determination of contribution amounts to the Canadian Radio-television and Telecommunications Commission (CRTC). Subsequently, the CRTC mandated that streaming services with revenues exceeding $25 million allocate five percent of their Canadian revenues to support local news, French-language programming, and Indigenous content.
Major streaming companies, including Netflix and Disney Plus, challenged these requirements in court, leading to ongoing legal battles. In response, the CRTC announced an increase in contribution rates to 15 percent of revenue for online broadcasters, sparking further criticism from organizations like the Motion Picture Association (MPA). The MPA denounced the decision as discriminatory and in violation of trade agreements, prompting the Canadian government to instruct the CRTC to reconsider the rate hike.
In a move to address concerns over potential price increases for consumers, the government indicated its intention to eliminate the contribution requirements entirely and replace them with taxpayer funding. Additionally, the government abolished the digital services tax in June 2025 as part of trade negotiations with the U.S.
The dispute highlights broader issues surrounding the regulation of Canadian content on digital platforms. The Online Streaming Act not only addresses funding but also aims to enhance access to Canadian content, particularly French- and Indigenous-language programming. While debates continue over the role of mandated payments versus regulatory control in cultural policy, the Canadian government remains committed to preserving Canadian culture and media sovereignty in the face of international pressures.
The conflict over cultural content regulations is not unique to Canada, as evidenced by Quebec’s Bill 109, which mandates the inclusion and accessibility of French-language content on streaming services. Experts suggest that the American government’s interest in these issues may stem from a historical strategy of promoting American cultural influence globally as a form of soft power.