The Canadian government is poised to amend the Online Streaming Act, which mandates foreign streaming services to financially support local cultural industries, including news and niche broadcasters. Reports suggest that officials are set to relax the contribution requirements, stirring concern among domestic broadcasters who argue that foreign companies must continue to support Canadian content.
Changes on the Horizon
The Canadian Radio-television and Telecommunications Commission (CRTC) is expected to receive new directives from Ottawa, which will likely see the scrapping of certain financial obligations imposed on foreign streaming platforms. The Globe and Mail has cited two senior government sources indicating that the government will engage in discussions with these platforms to establish a “more reasonable rate” of contribution to Canadian programming. However, the specifics of this new rate remain undetermined.
Originally enacted in 2023, the Online Streaming Act aimed to ensure that international streaming giants contribute to Canada’s cultural landscape. Observers note that this proposed rollback may be an effort by Mark Carney’s administration to alleviate U.S. concerns regarding the legislation’s impact on American film and music services.
Kevin Desjardins, president of the Canadian Association of Broadcasters, voiced his apprehension over the potential easing of these requirements. He argued that since foreign streamers do not produce local news, they should financially support it through contributions to relevant funds. Desjardins lamented the diminishing cross-subsidy that traditional broadcasters once provided and expressed doubt that the current government will maintain a strong stance on this issue.
Funding for Local News at Risk
In light of the anticipated changes, David Errington, president of Accessible Media Inc., emphasised the necessity for foreign streamers to contribute to the Canadian broadcasting system. Previously, the CRTC had proposed a plan that would have increased the required contributions from these companies from 5% to 15% of their Canadian revenue, specifically aimed at enhancing funding for local news and services catering to Canadians with disabilities. However, the government has now instructed the CRTC to revisit this policy.
In a recent announcement, Ottawa revealed a substantial $600 million investment aimed at bolstering Canada’s media sector, particularly as contributions from streaming services faced delays due to legal challenges. The new funding is expected to offer support to local news providers and broadcasters previously reliant on foreign streaming contributions.
Errington stated the critical nature of this funding, warning that without it, many organisations would face severe operational difficulties within the next few years. The financial support for “services of exceptional importance,” which includes organisations like the Aboriginal Peoples Television Network (APTN), is perceived as essential for long-term viability independent of streaming revenues.
Industry Reactions
The CRTC, which operates as an independent quasi-judicial body, has acknowledged the impending changes to the Online Streaming Act and will review the government’s new policy directions as they emerge. The Canadian Media Producers Association has called for the government to uphold the legislation, emphasising its importance in protecting Canadian creative industries.
Reynolds Mastin, CEO of the association, highlighted the need for foreign streaming services to invest in Canadian-produced content, thereby facilitating the showcasing of domestic talent. Meanwhile, Corus Entertainment has expressed its commitment to following developments closely, stressing the necessity of a level playing field between local broadcasters and their foreign counterparts.
Graham Davies, president of the Digital Media Association, has welcomed the government’s shift away from a streaming tax, favouring direct support for creators instead. This sentiment echoes a broader concern regarding the fairness of the Online Streaming Act, which has faced criticism from U.S. Trade Representative Jamieson Greer for disproportionately targeting American technology firms.
Marc Miller, Minister of Canadian Identity and Culture, underscored the urgency of ensuring that funding flows swiftly to Canadian television, film, and music sectors, which are in dire need of financial support.
Why it Matters
The potential rollback of the Online Streaming Act’s requirements signals a pivotal moment for Canada’s media landscape. As foreign streaming platforms generate significant revenue from Canadian audiences, the government’s decision on this matter could redefine the relationship between domestic broadcasters and international players. If foreign companies are allowed to sidestep their financial responsibilities, the implications for local news and cultural production could be dire, ultimately jeopardising the diversity and richness of Canadian storytelling in a global market.
