Federal government says it plans to remove a requirement for online streaming services to contribute part of their Canadian revenues toward Canadian content, replacing the funding with taxpayer money.
Change was outlined in a July 17 letter to the Federal Court of Appeal as part of a legal challenge over the Online Streaming Act. Government said it intends to eliminate the current “base contribution” rule for streaming companies and create a new funding system.
Move follows Ottawa’s decision to ask the CRTC to review its recent plan to increase streaming companies’ contributions from five per cent to 15 per cent of Canadian revenues. Government had previously announced $600 million in funding for the media sector but did not say the contribution requirement would be removed.
CRTC introduced the original rule in 2024, requiring large streaming services such as Netflix and Amazon Prime Video to help fund Canadian programming, including local news and French-language content. Payments were later paused while the Federal Court of Appeal reviews a legal challenge from streaming companies.
Proposed change has faced criticism from cultural groups and some politicians, who argue foreign streaming companies should continue helping support Canadian culture.
Prime Minister Mark Carney said the decision was not made because of pressure from the United States. He said the goal is to support affordability and prevent streaming companies from raising prices for Canadian customers.
