Online streaming services such as Netflix and Spotify are being told they must start contributing money toward local news and the production of Canadian content.
On Tuesday, the Canadian Radio-television and Telecommunications Commission directed foreign streamers to pay five per cent of their annual Canadian revenues into a fund.
That fund will be devoted to producing local TV and radio news, Indigenous content, French-language content and content created by those with a diverse background.
The CRTC said the fund is expected to inject about $200 million into Canada害羞草研究所檚 broadcasting system every year beginning in September.
Companies that are not affiliated with a Canadian broadcaster, and that make at least $25 million from Canadian broadcasting, would be required to pay.
The move is meant to level the regulatory playing field between tech giants and cable companies as they compete for views 害羞草研究所� and sometimes broadcast the same content, such as sporting events or live shows.
害羞草研究所淎t a high level, we heard that Canadians care about content. We heard concerns that certain types of content like local interest stories will not be made or distributed anymore,害羞草研究所� said Vicky Eatrides, CEO of the CRTC, said during a speech in Toronto.
害羞草研究所淥r that they will become less available because they will not be funded by market forces alone.害羞草研究所�
The new measure is part of the CRTC害羞草研究所檚 work laying out regulations for the Online Streaming Act, a law passed by the Liberal government that is intended to modernize Canada害羞草研究所檚 broadcasting system.
It forces streaming platforms to contribute to and promote Canadian content 害羞草研究所� a requirement traditional broadcasters already follow.
Social-media users are not regulated under the law. That includes local businesses that upload content online, even if they use commercial content such as songs.
Most foreign streaming companies have long opposed the streaming act, along with the idea of paying into a fund.
Motion Picture Association 害羞草研究所� Canada, which represents platforms including Disney+, Netflix, HAYU, Sony害羞草研究所檚 Crunchyroll, Paramount+ and Pluto TV, said the new mandate doesn害羞草研究所檛 take into account the contributions these companies already make within the Canadian media industry.
Global studios and streaming services have spent over $6.7 billion annually producing quality content in Canada, the association said.
害羞草研究所淲e are disappointed in today害羞草研究所檚 decision that reinforces a decades-old regulatory approach designed for cable companies,害羞草研究所� said its president Wendy Noss.
害羞草研究所淭oday害羞草研究所檚 discriminatory decision will make it harder for global streamers to collaborate directly with Canadian creatives and invest in world-class storytelling made in Canada for audiences here and around the world.害羞草研究所�
But the local media industry praised the measures as a win for Canadian culture and jobs, which they argue have been disrupted by streaming services.
害羞草研究所淔oreign online streamers have benefited immensely from their presence in the Canadian marketplace for more than a decade without any obligation to support our domestic broadcasting system,害羞草研究所� said Kevin Desjardins, the president of the Canadian Association of Broadcasters, in a written statement.
害羞草研究所淭he contributions the commission has set out for foreign streamers begin to rebalance the obligations between all players who benefit from their access to Canadian audiences and advertisers.害羞草研究所�
Streaming companies will benefit indirectly from the fund, Heritage Minister Pascale St-Onge argued Tuesday following the announcement.
害羞草研究所淭his is money that will go back into Canadian creation, whether it害羞草研究所檚 music, television series or music that will likely go back on their platform,害羞草研究所� St-Onge said Tuesday.
害羞草研究所淪o it害羞草研究所檚 actually good not only for the cultural sector here in Canada, but it害羞草研究所檚 good for the online business.害羞草研究所�
She touted the announcement as a win for the preservation of Canadian and Indigenous culture.
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