The Canadian government is poised to revise significant components of the Online Streaming Act, particularly concerning the financial obligations of foreign streaming platforms towards local news and broadcasting. This decision, reportedly aimed at appeasing concerns from U.S. tech giants, has raised alarms among Canadian broadcasters who argue that these platforms should not be exempt from supporting Canadian content.
Government’s New Approach
Recent reports from The Globe and Mail indicate that Ottawa plans to instruct the Canadian Radio-television and Telecommunications Commission (CRTC) to eliminate certain requirements that mandate foreign streaming services to contribute to the funding of Canadian news and niche broadcasters. Two senior government sources confirmed that discussions will commence with international streaming companies to establish what they term “a more reasonable rate” of contribution to local programming—a figure that remains undetermined.
This potential rollback is widely interpreted as a strategic move by Prime Minister Mark Carney’s administration to mitigate the backlash from U.S. streaming giants who have expressed unease over the Act’s implications for their operations in Canada.
Broadcasters Voice Concerns
Kevin Desjardins, president of the Canadian Association of Broadcasters, articulated a strong stance on the issue, asserting that foreign streaming services must retain some level of financial responsibility towards the Canadian news landscape. He noted that traditional broadcasters historically relied on entertainment content to support news production—a dynamic that has been disrupted by the rise of foreign platforms.
Desjardins emphasised, “If they don’t produce news themselves, they should actually be supporting it otherwise, through contributions to funds.” However, he expressed scepticism regarding the government’s current outlook on this matter.
Moreover, David Errington, president of Accessible Media Inc., echoed similar sentiments, advocating for the necessity of foreign streamers to contribute to Canada’s broadcasting system, as is customary in numerous other countries. Previously, this organisation, which focuses on content for Canadians with disabilities, was set to receive funding from foreign streamers under the Act. However, recent directives from Ottawa have led to a reconsideration of the CRTC’s funding framework, which had proposed increasing contributions from 5 per cent to 15 per cent of Canadian revenues.
New Funding Initiatives
In a bid to support the media sector, Ottawa has recently announced a substantial $600-million fund aimed at bolstering Canadian media. This funding is particularly crucial for local news outlets and broadcasters that stand to lose financial support from foreign streamers should the CRTC’s Services of Exceptional Importance Fund be dismantled. Errington warned that without this support, many organisations could face closure within a few years.
The new subsidies are intended to ensure long-term sustainability for essential services, including the Aboriginal Peoples Television Network (APTN), independent of streaming revenues. Benoit Fortin, a spokesperson for the CRTC, acknowledged that the government intends to issue new policy directions regarding the Online Streaming Act, which the Commission will review as they emerge.
Industry Perspectives
Industry leaders continue to express their concerns over the government’s shifting stance. Reynolds Mastin, president and CEO of the Canadian Media Producers Association, reiterated the importance of maintaining the integrity of the Act, particularly as it relates to foreign streaming services profiting from Canadian audiences. He asserted that it is vital for these companies to commission Canadian-produced content that showcases local talent.
In contrast, representatives from the streaming sector, such as Graham Davies of the Digital Media Association, welcomed the government’s pivot away from a direct streaming tax. He stated, “Direct government support for creators is better policy than a streaming tax,” suggesting that this new direction could benefit creators while fostering a more competitive environment.
Why it Matters
The impending changes to the Online Streaming Act highlight a critical crossroads for Canada’s cultural industries. As foreign streaming giants continue to dominate the market, the issue of equitable contributions to the local scene remains pressing. The government’s actions will not only shape the future of Canadian content creation but also determine the viability of local broadcasters who have long relied on a supportive financial ecosystem. As discussions unfold, the balance between fostering international business interests and protecting domestic cultural integrity will be a defining challenge for policymakers in the coming months.
