The federal government is overriding a CRTC decision that would have forced major streaming platforms to pay a 15% levy to fund Canadian content, citing concerns that the costs would have been passed straight to consumers.
The CRTC had bumped the contribution rate from 5% to 15% under the Online Streaming Act, targeting foreign (well, mainly U.S.) streamers like Netflix, Apple TV+, Paramount+, and Prime Video. The backlash was quick, with Canadians already squeezed by the cost of living not thrilled about the prospect of higher subscription bills.
Instead of letting those rules stand, Ottawa is putting $600 million in taxpayer funding directly into the audio and audiovisual sectors. The money is meant to support local news, French-language productions, and Canadian creators, essentially filling the hole that the CRTC tax would have generated without making streaming more expensive.
It’s a surprise announcement considering the feds said last week they would not be able to intervene with the CRTC decision. The Motion Picture Association, which represents big studios in Hollywood, called the Online Streaming Act illegal and was ready to fight it as it was said to have violated USMCA agreement between North America.
The government says it is also rewriting how the Online Streaming Act gets implemented, with a new approach focused on flexibility for platforms, consumer choice, and keeping content affordable. Alrighty then.
“Canadians should be able to see themselves in the films and series they watch and hear their lives reflected in the artists they listen to,” said Marc Miller, Minister of Canadian Identity and Culture, in a statement on Tuesday. “That’s why we are investing to support the audiovisual and audio sectors now, while bringing necessary stability as we develop new directions that will ensure Canadian content remains affordable and that our stories continue to shape our identity and how the world sees us.”
Of course, there will be consultations with the cultural sector before the government finalizes how the funding gets distributed, it said.
The timing isn’t accidental either. With CUSMA renegotiations on the horizon, the last thing Ottawa wanted was a fight with Washington over a tax that directly targeted American streaming giants like Netflix, Apple TV+, and Prime Video. Killing it now was as much about keeping the trade relationship smooth as it was about protecting Canadian wallets. Well, this time taxpayers are footing the bill instead, regardless.
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You can’t seem to make up your mind in this article. On one hand you criticize the CRTC levy, but then you also criticize the public funding alternative. What’s the deal? Or are you advocating for no funding to go to the Canadian cultural sector? Maybe you are happy to just watch American stories and never see Canadian stories being told or to promote Canadian musicians. Is that it?
Also, your writing is heavily influenced by your opinion. That’s not how news articles are supposed to be written. How professionally written publications balance news vs opinion is that news articles are pure fact reporting pieces and do not include snide opinion comments, like you have included. And then they have a separate piece whose title starts with the word “opinion” and that’s where they make all of their snide comments or express their views. I really wish you folks would do that. As it stands now, the “articles” on this website are a mix of both news and opinion, and it just muddies things.
You are correct Alan. iPhoneinCanada has had a strong Conservative slant for a while now – especially when pertaining to the Canadian Government crossing over with Tech. There’s a slavish devotion to all things Musk and Tesla as well. The “news” part of the site had unfortunately (like you said) given way to right-wing talking points and opinions.
and what are right wing talking points and opinions u speak of?
I have no interest in tv shows that are Canadian produced. they just suck. i watch content freely from all services with shows that are good. tell me the last good canadian tv series in the past 10 years? let me choose what i want to watch instead of being forced to watch lame tv shows being forced on me with some algorithm. that being said id watch the littlest hobo remake if it came back lol
Hahahahahahaha. What a joke. Professionally written pieces. Yeah the CBC is full of that /s. We are broke, spending more money we do not have costs is more and more. You cannot tax to prosperity.
I couldn’t agree more
Man, our government is insane. first voting against cancelling the online streaming act yesterday, now overriding the CRTC and instead using 600 million in funds to subsidize crap shows that nobody wants to watch. why not just let good content speak for itself instead of subsidizing junk shows that nobody ever wants to watch. What a joke. how about spending $600 million on doctors so I can get a doctor and not have to wait 8 hours in emergency that’s not even 24 hours anymore.
Here is the issue. CanCon has been a slush fund for many years and what do we get for our tax dollars being given away for entertainment? Not a lot. Any music or tv shows that are worth anything would be made anyway without tax dollars. And on top of that reality, this decision by the CRTC is over reach and then the feds cancel it and give our money away anyway. This will increase the deficit and make everything more expensive because we continue to print money so that the Liberals can get more votes. This is insane. Lets pass a law to always have a balanced budget so if you want to spend money on something you can cut something else that doesn’t need it.