CRTC Slaps Apple, Netflix and Disney With 15% Tax — And Your Streaming Bill Is Next

Apple, Netflix, Amazon, Disney+ and other online streaming services operating in Canada will see their mandatory contributions to Canadian and Indigenous content triple under new rules announced by the country’s broadcast regulator.

The Canadian Radio-television and Telecommunications Commission (CRTC) has set a new 15% contribution rate for online broadcasters, now up from the 5% base rate introduced in 2024.

The increase means major streaming platforms earning more than $25 million annually in Canadian broadcasting revenues will now direct a significantly larger share of their income toward Canadian and Indigenous programming, including French-language content and news.

The CRTC framed the move as a matter of fairness, arguing that online broadcasters should shoulder a greater share of the system they profit from. Traditional broadcasters such as CTV and CBC will soon lower to a 25% contribution standard (currently it’s 30-45%)  meaning the gap between legacy and streaming players, while still huge, is narrowing.

The regulator says the combined contributions from all broadcasters are expected to stabilize funding at more than $2 billion annually.

“Today’s decisions are about building a stronger broadcasting system. We are taking action to ensure stable funding for Canadian and Indigenous content, and to help make it more discoverable,” said Vicky Eatrides, Chairperson and Chief Executive Officer, CRTC, in a statement on Thursday.

As it stands, the likes of Apple, Amazon, Netflix and other global streaming platforms are challenging a federal order. The 5% they are supposed to pay has been set aside in a trust pending the outcome of their appeal.

One thing is for sure, if big foreign streamers, mainly from the U.S., are forced to increase contributions, you know that tax will be passed onto consumers. So who really wins here?

The new rate follows broad public consultations that drew more than 600 submissions and testimony from nearly 150 groups, including Indigenous peoples, creators, and both traditional and online broadcasters.

It’s estimated contributions from foreign streamers will make up about $2 billion towards Canadian content.

Earlier this week, Republican Lloyd Smucker warned that new rules under Ottawa’s Online Streaming Act were coming soon, and an American response would be coming. “Canada is doubling down on discriminatory regulations targeting American streaming services and digital creators,” Smucker wrote. It seems Ottawa let the U.S. know ahead of time of this massive change.

In other news, get ready for a future remake of Anne of Green Gables in 4K and in IMAX, right?

Update May 21: Spotify told iPhone in Canada the 15% tax doesn’t apply to them as they are classified as an audio streaming service and not audio-visual.