CRTC Raises Required Contributions from Streaming Services to 15 Percent

The Canadian Radio-television and Telecommunications Commission announced Thursday that large online streaming providers must direct 15 percent of their Canadian revenue to Canadian content. The Online Streaming Act, passed in 2023, allows the regulator to require companies with at least $25 million in annual Canadian revenue to support Canadian movies, television, and local news.

The CRTC initially set the contribution rate at five percent and is now raising it to 15 percent.

The regulator lowered the base contribution rate for traditional broadcasters to 25 percent. Previously that rate ranged from 30 to 45 percent. The CRTC stated the changes will stabilize annual funding for Canadian content at around $2 billion. The regulator is also implementing discoverability guidelines to ensure Canadian and Indigenous content is prominently presented on streaming platforms.

Streaming companies challenged the original five percent requirement in court, and the funds have not yet begun flowing. Scott Shortliffe, a CRTC vice-president, said he was confident the court would rule in the CRTC's favor. "We do recognize there's a stay in place, but in the meantime we're going forward in establishing these policies," Shortliffe said.

U.S. lawmakers who have called it a trade irritant. U.S. Trade Representative to investigate the measure and consider retaliatory action. -Mexico Agreement by July 1.