In a significant policy shift, the Canadian government is poised to revise elements of the Online Streaming Act, particularly concerning financial contributions from foreign streaming services. This move has drawn sharp criticism from broadcasters who argue that global streaming platforms should remain accountable for supporting Canadian content, especially in the news sector.
The Proposed Changes
Sources within the government have indicated that Ottawa intends to instruct the Canadian Radio-television and Telecommunications Commission (CRTC) to reconsider certain funding obligations initially imposed on foreign streaming companies. These changes could effectively relieve these companies from their financial responsibilities towards local news and niche broadcasters, a decision that has raised alarms among Canadian media stakeholders.
The Online Streaming Act, enacted in 2023, mandates that foreign entities streaming audio and video in Canada contribute to the nation’s cultural industries. However, the anticipated rollback appears to be an attempt by the administration under Mark Carney to placate concerns from U.S. streaming giants regarding the legislation’s implications for their operations in Canada.
Arguments from Canadian Broadcasters
Kevin Desjardins, president of the Canadian Association of Broadcasters, has voiced strong opposition to the government’s anticipated changes. He asserts that foreign streamers should continue to play a role in financing Canadian news, given that traditional broadcasters have historically relied on a cross-subsidy model to sustain their news operations. With the rise of these foreign platforms, that model has been disrupted.
Desjardins stated, “If they don’t produce news themselves, they should actually be supporting it otherwise, through contributions to funds.” His sentiment underscores a broader concern that without adequate financial backing from foreign companies, local news services could face dire consequences.
David Errington, president of Accessible Media Inc.—an organisation dedicated to producing content for Canadians with disabilities—echoed these concerns. He believes that foreign streamers should still contribute to the Canadian broadcasting framework, as is customary in many other countries. Under the previous structure, Accessible Media was set to benefit from increased contributions mandated by the CRTC, which would have raised the foreign streamers’ financial commitment from 5% to 15% of their Canadian revenues. This increase is now under review, as Ottawa seeks to recalibrate the policy.
New Funding Initiatives
In light of these developments, the government has signalled plans to unveil a new funding package aimed at bolstering the Canadian media sector. This package, amounting to $600 million, is expected to support local news and broadcasters who may lose financial backing from foreign streamers. Errington highlighted the critical nature of this support, stating, “If we didn’t get this help, in three or four years from now we would probably be out of business.”
The proposed funding will specifically target “services of exceptional importance,” which includes organizations like the Aboriginal Peoples Television Network (APTN). According to Errington, this funding would ensure long-term sustainability, independent of the fluctuating revenues from streaming services.
Benoit Fortin, a spokesperson for the CRTC, confirmed awareness of the government’s move to issue new policy directions, which will be assessed as they are developed.
Industry Reactions
The reaction from the media industry has been mixed. Reynolds Mastin, president and CEO of the Canadian Media Producers Association, underscored the need for the federal government to defend the Online Streaming Act, stating that it is crucial for foreign companies profiting from Canadian audiences to invest in domestic productions. He emphasised, “The most important thing is that foreign streaming services… be required to commission Canadian-owned, Canadian-produced shows that showcase the best Canadian creative talent.”
Meanwhile, Corus Entertainment has expressed a desire for a level playing field between Canadian broadcasters and foreign streaming competitors, asserting the necessity for robust support for local news entities.
Conversely, Graham Davies, president of the Digital Media Association—representing international music streamers—welcomed the government’s shift, arguing that direct support for creators is a more effective strategy than imposing a streaming tax.
Why it Matters
The potential rollback of the Online Streaming Act’s funding requirements could have profound implications for the future of Canadian media. As foreign streaming services continue to dominate the market, the necessity for a balanced and equitable regulatory framework becomes increasingly urgent. Without adequate contributions from these platforms, the sustainability of local news and cultural programming is at stake, risking the diversity and richness of Canada’s media landscape. The government’s forthcoming policy directions will be pivotal in determining how the Canadian broadcasting sector navigates this complex environment, and whether it can thrive in the face of mounting external pressures.
