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The Canadian government’s intention to modify the Online Streaming Act has sparked significant debate, particularly among the nation’s broadcasters. As reports indicate that Ottawa is poised to eliminate mandatory contributions from foreign streaming services to support local news, industry leaders are voicing their concerns over the potential consequences for Canadian content.
Government’s Shift in Policy
Sources familiar with the matter have revealed that the government plans to instruct the Canadian Radio-television and Telecommunications Commission (CRTC) to abandon certain obligations imposed on international streaming platforms. These obligations were designed to ensure these services financially support Canadian cultural industries, particularly local news outlets and niche broadcasters.
The Online Streaming Act, enacted in 2023, mandates that foreign entities streaming audio and video content in Canada contribute to the country’s media ecosystem. However, the proposed rollback appears to be an effort by Mark Carney’s administration to alleviate apprehensions from American streaming giants regarding their financial responsibilities in Canada.
Industry Reactions
Kevin Desjardins, president of the Canadian Association of Broadcasters (CAB), expressed that the organisation’s stance remains firm: foreign streamers must continue contributing to the funding of Canadian news. He noted that traditional broadcasters historically relied on a cross-subsidy model, where entertainment content helped finance news production. However, the rise of foreign streaming services has disrupted this model, leading to a decline in resources for local news.
“If they don’t produce news themselves, they should actually be supporting it otherwise, through contributions to funds,” Desjardins asserted, while acknowledging that the government does not seem inclined to adopt this viewpoint at present. He further emphasised the need for structural solutions that would equitably address the roles of both broadcasters and streamers in Canada’s media landscape.
Impact on Accessible Media and Other Stakeholders
David Errington, president of Accessible Media Inc. (AMI), echoed these sentiments, arguing that foreign streamers should be required to contribute in some manner to the Canadian broadcasting system, similar to practices in other countries. AMI, which creates content for Canadians with disabilities, was previously set to benefit from increased funding through contributions mandated by the Online Streaming Act.
However, recent government directives have prompted the CRTC to reassess its policy, which would have seen the contribution rate from streamers rise from 5% to 15% of their Canadian revenue—an adjustment aimed at bolstering local content creation. In light of these developments, the government has announced a $600 million support package for Canada’s media sector, a move that Errington believes is critical for the survival of local news and broadcasting entities.
“If we didn’t get this help, in three or four years from now we would probably be out of business,” he commented, highlighting the urgency of the situation for organisations like AMI.
The Broader Implications
The current climate in Canadian broadcasting has led to calls for a reevaluation of the relationship between traditional media and foreign streaming platforms. As Reynolds Mastin, president and CEO of the Canadian Media Producers Association, pointed out, it is crucial for the federal government to uphold the integrity of the Online Streaming Act. He stressed that it is vital for foreign streaming services—generating substantial revenue from Canadian audiences—to invest in Canadian-produced content that showcases local talent.
Meanwhile, Corus Entertainment has weighed in on the evolving situation, underscoring the necessity for a level playing field between Canadian broadcasters and international competitors. Melissa Eckersley, a spokesperson for the company, asserted that independent local news services require robust support to thrive in this competitive environment.
Conversely, Graham Davies, president of the Digital Media Association, which represents music streaming giants like Spotify and Apple, welcomed the government’s shift towards direct support for creators rather than imposing additional taxes on streaming services. This suggests a growing divide between traditional media advocates and their counterparts in the digital streaming realm.
Why it Matters
The government’s potential rollback of the Online Streaming Act highlights a critical juncture in Canada’s media landscape. With foreign streaming services exerting increasing influence over the market, the long-term sustainability of Canadian content is at stake. As industry stakeholders advocate for equitable contributions from these platforms, the government’s decisions will shape not only the future of local news but also the broader cultural fabric of Canada. The outcomes of these discussions will resonate far beyond the confines of the broadcasting sector, influencing how Canadians engage with their media in an increasingly globalised digital age.
