The federal government plans to replace the financial contribution requirement for streamers with government funding, as stated in a court document. The attorney general’s office mentioned that the intention is to eliminate the base contribution requirement on streaming services. However, the Canadian Association of Broadcasters expressed skepticism, stating that the government’s message does not align with their understanding.
Culture Minister Marc Miller’s office declined to provide further details on whether the contribution requirement will be eliminated permanently or temporarily. In early June, the government announced its decision to issue a new policy directive to the CRTC, following the regulator’s increase of contributions for large streaming services. The government aims to provide the industry with $600 million in annual funding, replacing the contributions labeled as the “Netflix tax” under the Online Streaming Act.
The court document dated July 17 revealed the government’s plan to release the new policy directive to the CRTC soon. While the U.S. deemed the Online Streaming Act a trade irritant, leading to Ottawa’s policy shift, the U.S. Trade Representative suggested that Canada may not receive recognition for this action.
Prime Minister Mark Carney emphasized that the decision to eliminate the tax on large streamers was made two months ago due to concerns about affordability. The Canadian Media Producers Association emphasized the importance of foreign streamers investing in Canadian content to support the industry. Opposition MPs criticized the government’s approach, with the NDP accusing the Liberals of subsidizing U.S. tech and media companies at the expense of Canadian media. The Conservatives opposed the CRTC’s contribution rules and criticized the government for imposing a significant subsidy on Canadians.
