Canada's federal broadcast regulator has announced that large online streaming services must now contribute 15% of their Canadian revenues to Canadian content, tripling the previous 5% requirement set in 2024. The decision, made by the Canadian Radio-television and Telecommunications Commission (CRTC), is part of the implementation of the Online Streaming Act and has been identified by the United States as a trade irritant ahead of bilateral negotiations.
Increased Financial Commitments
The new rule applies to streamers and broadcasters with at least $25 million Canadian (US$18 million) in annual Canadian broadcasting revenues. Major US-based companies, including Apple, Amazon, and Spotify, are currently challenging the original 5% requirement in court. The CRTC expects total contributions to stabilize at over $2 billion, supporting Canadian and Indigenous content, including French-language programming and news.
Impact on Traditional Broadcasters
Traditional broadcasters, which previously paid between 30% and 45%, will see their contribution requirements lowered to 25%. The regulator has also outlined specific spending rules: streamers with Canadian revenues exceeding $100 million Canadian (US$73 million) annually must direct 30% of their contributions toward partnerships with Canadian broadcasters and independent producers.
New Fund for Political Coverage
Additionally, the CRTC is establishing a new fund to support specific TV channels, including CPAC, which provides direct coverage of political events. The regulator emphasized that the changes aim to ensure a stable funding environment for Canadian content creation.
