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The Canadian government is poised to revise significant aspects of the Online Streaming Act, a move that has ignited widespread concern among local broadcasters. As part of these changes, the administration plans to eliminate the mandatory financial contributions from foreign streaming giants that support Canadian news outlets. This decision, reported by The Globe and Mail, appears to be an attempt to placate U.S. interests while leaving Canadian media stakeholders apprehensive about the future of their industry.
Government’s Shift in Strategy
According to two senior government sources, Ottawa will instruct the Canadian Radio-television and Telecommunications Commission (CRTC) to relax certain stipulations that require international streaming platforms to financially back local news and niche broadcasters. This adjustment is expected to open discussions with these foreign companies and other stakeholders to establish what the government describes as a “more reasonable rate” for contributions to Canadian programming. However, no specific figures have been disclosed at this time.
The Online Streaming Act, which became law in 2023, was designed to compel foreign entities that provide audio and video content to contribute to Canada’s cultural landscape. Critics of the impending rollback argue that the government should not absolve these corporations of their obligation to support Canadian content, especially as they continue to thrive in the Canadian market.
Concerns from Canadian Broadcasters
Kevin Desjardins, president of the Canadian Association of Broadcasters, articulated the frustrations of private broadcasters regarding this shift. He emphasised the need for foreign streamers to contribute to local news funding, a task traditionally supported by established broadcasters through cross-subsidisation of their entertainment offerings. “If they don’t produce news themselves, they should support it through contributions to funds,” he remarked. Despite this, Desjardins noted that the government appears disinclined to pursue this avenue.
David Errington, president of Accessible Media Inc., echoed these sentiments, asserting that foreign streaming services should adhere to similar funding requirements as those in place in other countries. Previously, AMI was to benefit from a funding scheme dependent on contributions from these platforms, which was recently undermined by the government’s directive for the CRTC to reassess its policies. This review includes a proposal to increase the contribution rate from 5% to 15% of revenue generated in Canada, a suggestion that now hangs in the balance.
Government Funding and Future Support
In a bid to counterbalance the anticipated shortfall from foreign streamers, the government has announced a substantial $600-million investment to bolster Canada’s media sector. This funding is intended to assist local news and broadcasters that would otherwise miss out on financial support from international streaming companies. “If we didn’t get this help, in three or four years from now we would probably be out of business,” warned Errington.
This infusion of government funding aims to provide a “long-term sustainability” for Canadian broadcasters, independent of streaming revenue, thereby securing a vital lifeline for many organisations, including the Aboriginal Peoples Television Network (APTN).
The Broader Implications for Canadian Media
The ongoing debate around the Online Streaming Act is not merely a matter of funding; it encapsulates larger issues regarding the relationship between domestic and foreign media entities. Reynolds Mastin, president and CEO of the Canadian Media Producers Association, has called on the federal government to continue defending the principles behind this legislation, emphasising that it is crucial for foreign services operating in Canada to invest in homegrown talent and productions.
Corus Entertainment’s spokesperson, Melissa Eckersley, highlighted the urgency for a level playing field between Canadian broadcasters and their foreign counterparts. “Independent local news providers need robust support,” she asserted.
Conversely, the Digital Media Association, representing U.S. streaming services, has welcomed the government’s pivot, suggesting that direct support for creators is preferable to imposing a streaming tax. This perspective aligns with U.S. Trade Representative Jamieson Greer’s criticism that the original act unfairly burdens American tech companies.
Why it Matters
The government’s decision to roll back elements of the Online Streaming Act underscores a significant crossroads for Canadian media. As the landscape evolves with the increasing influence of foreign streaming entities, the need for equitable contributions to Canadian content has never been more pressing. The outcome of these discussions will not only shape the immediate financial health of local broadcasters but will also determine the future of Canada’s cultural fabric in an increasingly globalised media environment. If foreign streamers are allowed to evade their responsibilities, the potential erosion of local news and programming could leave a lasting impact on Canadian society as a whole.