Apple, Spotify and More Urge Canadians to ‘Scrap the Streaming Tax’

The Digital Media Association (DiMA), representing music streaming services like Amazon, Apple Music, Spotify, and YouTube, has launched a campaign urging Canadians to oppose the new federal levy on streaming services.

The group set up a website called “Scrap the Streaming Tax,” arguing that the government’s new Online Streaming Act, also known as Bill C-11, will increase costs for consumers.

The site states: “There’s a new streaming tax, targeting you. Life is already unaffordable! The government has put a tax on your streaming services, just another decision that makes life more expensive.”

The law, which requires foreign streaming services operating in Canada to pay a 5% levy on revenue, could result in higher subscription prices and fewer content options for Canadians.

We already told you that Spotify increased its pricing in Canada recently, by up to 24%. As for life being unaffordable? Maybe Apple could lower iPhone prices too, or even the price of its Apple One subscriptions that include Apple Music?

DiMA also warns that the CRTC may impose more regulations in the future, potentially affecting consumers’ access to their favorite content.

“The streaming tax needs to be scrapped because Canadians are already feeling the pinch from rising inflation and economic pressures. The addition of a streaming tax is an unnecessary burden,” said Graham Davies, President and CEO of DIMA, in a statement. “This tax is not only a financial strain on consumers, but it also undermines the role that streaming services have played in promoting Canadian culture and artists and enabling the music sector’s investment in talent.”

The association is encouraging Canadians to voice their concerns by contacting their local MPs and asking them to repeal the legislation. They have provided a letter template for users to send, expressing their opposition to what they call an “unnecessary burden” that increases the cost of living for Canadians.

“It’s time to scrap this tax and focus on measures that genuinely support Canadian creators without placing additional financial strain on consumers. I urge you to take immediate action to repeal the streaming tax and advocate for a more balanced approach that benefits both consumers and creators,” reads the letter template to MPs.

You can check out the new site here and send a letter to your local MP, if you are opposed to the new Online Streaming Act. Consumers will definitely be paying the price here.