Foreign streaming companies forced to contribute hundreds of millions of dollars to support 'Canadian and Indigenous content'

Foreign streaming platforms not affiliated with a Canadian broadcaster that make more than $25 million of Canadian revenue annually will need to pay.

Foreign streaming companies forced to contribute hundreds of millions of dollars to support 'Canadian and Indigenous content'
Tada Images/Adobe Stock
Remove Ads

Streaming companies have warned that consumers could see prices increase after it was announced that they would need to contribute 5 percent of their annual revenues to support broadcasting in Canada.

The Canadian Radio-television and Telecommunications Commission (CRTC) which is in charge of putting the Online Streaming Act into place, announced on Tuesday that companies like Netflix, Spotify, and Amazon Prime will need to pay about $200 million per year to support Canadian music, TV, film and radio.

Foreign streaming platforms not affiliated with a Canadian broadcaster that make more than $25 million of Canadian revenue annually will need to pay.

The funds will go towards supporting the creation of Indigenous, French, and Black content.

Funds will also be allocated to the Canadian Starmaker Fund which finds emerging Canadian recording artists and helps support them in their quest of being signed by a major Canadian record label.

"The funding will be directed to areas of immediate need in the Canadian broadcasting system, such as local news on radio and television, French-language content, Indigenous content, and content created by and for equity-deserving communities, official language minority communities, and Canadians of diverse backgrounds," the CRTC said.

CRTC Chairperson Vicky Eatrides said the agency's "decision will help ensure that online streaming services make meaningful contributions to Canadian and Indigenous content."

The Motion Picture Association of Canada slammed the CRTC yesterday saying that the fee "reinforces a decades-old regulatory approach designed for cable companies" and is "discriminatory."

The fees, they say, "will make it harder for global streamers to collaborate directly with Canadian creatives and invest in world-class storytelling made in Canada for audiences here and around the world."

The group added that the CRTC did not fully consider "the significant contributions streamers make in working directly with Canada's creative communities."

The group represents streaming giants like Netflix, Disney Plus, HAYU, Crunchyroll, and Paramount Plus.

"Global studios and streaming services have spent over $6.7 billion annually producing quality content in Canada for local and international audiences and invested more in the content made by Canadian production companies last year than the CBC, or the Canada Media Fund and Telefilm combined," the group said.

The Digital Media Association, representing streaming music providers like Amazon Music, Apple Music, and Spotify, also criticized the fees.

The "discriminatory tax on music streaming services... is effectively a protectionist subsidy for radio" and may worsen "Canada's affordability crisis," the group said.

Remove Ads
Remove Ads

ORDER NOW: Sell the CBC T-shirt

$1.5 billion annually in tax dollars and all we got was this lousy channel!

BUY NOW!

Don't Get Censored

Big Tech is censoring us. Sign up so we can always stay in touch.

Remove Ads