Canada’s broadcasting regulator announced on Tuesday that streaming platforms like Netflix and Disney will be required to contribute five percent of their Canadian revenues to fund local content, starting in September. This requirement is a result of the Online Streaming Act, which was passed in 2023 to regulate digital platforms and ensure financial contributions towards the creation, production, and promotion of Canadian content.
The Canadian Radio-television and Telecommunications Commission (CRTC) estimated that this measure will generate Can$200 million (US$146 million) annually to support Canada’s broadcasting system. The funding will specifically benefit areas such as local news, French-language content, and Indigenous content.
Streaming services will have some flexibility in directing their contributions to support Canadian television content directly. This move is part of a larger effort by the Canadian government to regulate web giants and ensure fair contributions from digital platforms.
While some industry associations, like the Digital Media Association (DiMA) and the Motion Picture Association-Canada, expressed concerns about the new requirement, Canada’s Heritage Minister Pascale St-Onge emphasized that this measure will ultimately benefit streamers by reinvesting in Canadian creation.
