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The Canadian government is poised to revise the Online Streaming Act, a move that has ignited significant debate among broadcasters about the obligation of foreign streaming services to contribute to Canadian content. As reported by The Globe and Mail, senior government sources have indicated that Ottawa will instruct the Canadian Radio-television and Telecommunications Commission (CRTC) to eliminate certain funding requirements for international streamers, a decision that is likely to reshape the landscape for local news and niche broadcasters.
Government’s Proposed Changes to the Online Streaming Act
The Online Streaming Act, which was enacted in 2023, mandates that foreign streaming platforms financially contribute to the cultivation of Canada’s cultural industries. However, the anticipated changes appear to be an attempt by Mark Carney’s administration to alleviate concerns from U.S. streaming giants about their financial responsibilities in Canada.
Sources within the government suggest that discussions will commence with foreign streaming services and other stakeholders to establish a “more reasonable rate” for their contributions to Canadian programming. The specifics of this new rate are yet to be determined, but the shift has raised alarms among Canadian broadcasters.
Kevin Desjardins, president of the Canadian Association of Broadcasters, has voiced concerns that foreign streamers should not be exempt from supporting the Canadian news ecosystem. He noted that traditional broadcasters historically funded news production through cross-subsidisation from entertainment content, a model that has been disrupted by the rise of foreign streaming services. “If they don’t produce news themselves, they should actually be supporting it otherwise, through contributions to funds,” Desjardins asserted.
The Implications for Local News Funding
The proposed rollback of the Online Streaming Act has implications that extend beyond mere regulatory adjustments. David Errington, president of Accessible Media Inc., expressed that foreign streamers should still be held accountable for contributing to the Canadian broadcasting infrastructure, similar to practices in many other nations. The CRTC had previously set a policy to increase contributions from streamers from 5% to 15% of their Canadian revenue, a move that has now been scrutinised and is subject to review.
The government has also announced a significant $600 million in support for Canada’s media sector, a decision that comes as some streaming contributions have been stalled due to legal challenges. This funding aims to provide financial stability to local news and broadcasters, particularly those that would be adversely affected by the reduced contributions from foreign entities.
Errington emphasised the urgency of this funding, stating, “If we didn’t get this help, in three or four years from now we would probably be out of business.” The government’s new funding initiatives are expected to bolster local services, including the Aboriginal Peoples Television Network (APTN), ensuring their long-term viability independent of streaming revenue.
Broader Industry Reactions
In light of the developments, Reynolds Mastin, president and CEO of the Canadian Media Producers Association, underscored the necessity of the federal government defending the Online Streaming Act. He reiterated the need for foreign streaming services generating substantial revenue in Canada to prioritise commissioning Canadian-produced content that showcases domestic talent.
Corus Entertainment, through spokesperson Melissa Eckersley, echoed the sentiment for a level playing field, asserting that Canadian broadcasters require equitable support to compete effectively against their foreign counterparts. Meanwhile, Graham Davies, president of the Digital Media Association, welcomed the government’s shift towards direct support for creators, arguing that this approach is preferable to imposing a streaming tax.
Why it Matters
The impending changes to the Online Streaming Act represent not only a shift in policy but also a pivotal moment for Canada’s cultural landscape. As government discussions unfold, the outcome will significantly influence how foreign streaming giants contribute to the local media ecosystem. The balance between fostering a competitive market for international players and ensuring the sustainability of Canadian content production is delicate. The decisions made in Ottawa will have lasting repercussions for broadcasters, content creators, and audiences alike, potentially reshaping the future of Canadian media in an increasingly globalised digital environment.
