In a significant policy reversal, the Canadian government is poised to amend the Online Streaming Act, which previously mandated foreign streaming services to contribute funding to the country’s cultural industries. This move has raised alarms among the broadcasting community, who argue that international platforms should not be exempt from supporting Canadian content, particularly local news outlets. With discussions set to begin between Ottawa and foreign streamers, the future of Canadian media funding hangs in the balance.
Government’s Planned Adjustments
Recent reports indicate that the government intends to instruct the Canadian Radio-television and Telecommunications Commission (CRTC) to reconsider its funding requirements for foreign streaming services. According to two senior government sources, discussions will revolve around establishing “a more reasonable rate” of contribution to Canadian programming, although specific figures remain undecided. This decision has been interpreted as an effort to alleviate concerns from U.S. streaming giants, who have voiced apprehension over the costs associated with the original act.
The Online Streaming Act, enacted in 2023, was designed to ensure that foreign companies streaming audio and video content in Canada contribute financially to the nation’s cultural sectors. However, the impending rollback has prompted industry leaders to express discontent, asserting that foreign streamers must continue to play a role in supporting Canadian news and media.
Industry Responses
Kevin Desjardins, president of the Canadian Association of Broadcasters, emphasised that foreign services should be held accountable for their contributions to Canadian journalism. Historically, local news has relied on a cross-subsidy model, wherein entertainment content bolstered news production. Desjardins remarked, “If they don’t produce news themselves, they should actually be supporting it otherwise, through contributions to funds.” Despite this, he acknowledged a disconnect between the broadcasters’ expectations and the government’s current stance.
The sentiment was echoed by David Errington, president of the non-profit Accessible Media Inc., who argued that foreign streamers should contribute to the Canadian broadcasting system, akin to practices in other countries. Previously, the CRTC had proposed increasing the contribution from streamers from 5% to 15% of their Canadian revenue, a change now under review by Ottawa.
New Funding Initiatives
To mitigate the impact of reduced contributions from foreign streamers, the government has announced a $600-million package aimed at bolstering Canada’s media sector. This funding could be crucial for local news and broadcasters that may face financial strain due to the anticipated changes in the Online Streaming Act. Errington stated that without such support, many organisations risk closure within a few years.
The proposed subsidies, which include financial backing for services deemed “exceptional,” aim to ensure long-term sustainability for Canadian broadcasting entities, including the Aboriginal Peoples Television Network (APTN). Benoit Fortin, a spokesperson for the CRTC, confirmed that the commission is aware of the government’s intent to issue new policy guidance and will assess these directions as they materialise.
The Bigger Picture
As discussions unfold, industry leaders are calling for a framework that treats all players in Canada’s media landscape equitably. Reynolds Mastin, president and CEO of the Canadian Media Producers Association, underscored the necessity for foreign streaming services to commission Canadian content that showcases domestic talent. This call for accountability reflects a broader apprehension regarding the influence of foreign entities on the Canadian cultural fabric.
Corus Entertainment’s spokesperson acknowledged the importance of a level playing field for local broadcasters, highlighting the need for robust support for independent news providers. Meanwhile, Graham Davies, president of the Digital Media Association, welcomed the government’s shift, promoting direct support for creators over taxation on streaming services.
Why it Matters
The government’s reconsideration of the Online Streaming Act represents a pivotal moment for Canadian media. As foreign streaming giants continue to dominate the market, the question of how to ensure their contributions to Canadian content becomes increasingly urgent. The outcome of these discussions will not only determine the fate of local news and broadcasting but also shape the future landscape of Canadian culture in the digital age. The balance between fostering a vibrant local media scene and accommodating international corporations is delicate, and the decisions made in the coming months will resonate for years to come.
