The Canadian Radio-television and Telecommunications Commission (CRTC) is advancing the implementation of the Online Streaming Act (formerly Bill C-11). These new changes will directly impact such popular services as YouTube, Spotify, Netflix and others.
The Online Streaming Act, which amended the Broadcasting Act, mandates that online streaming services contribute to Canadian and Indigenous content. Following the adoption of the legislation, the CRTC published a regulatory plan and launched four public consultations, including one on the financial contributions online services must make to support the Canadian broadcasting system.
The CRTC has determined that online streaming services must contribute 5% of their Canadian revenues to support the Canadian broadcasting system. These obligations will take effect in the 2024-2025 broadcast year, generating an estimated $200 million annually in new funding.
The funding will be allocated to areas of immediate need in the Canadian broadcasting system, including local news on radio and television, French-language content, Indigenous content, and content created by and for equity-deserving communities, official language minority communities, and Canadians of diverse backgrounds.
Online streaming services will have some flexibility to direct portions of their contributions to support Canadian television content directly.
“As a quasi-judicial tribunal, the CRTC is committed to balancing extensive consultation with expedient action to establish the new regulatory framework,” stated Vicky Eatrides, Chairperson and Chief Executive Officer of the CRTC. “Today’s decision ensures that online streaming services will make substantial contributions to Canadian and Indigenous content, and we will continue to act swiftly as we implement the new legislation.”
It is worth noting that a similar law enacted last year targeting foreign social media platforms led to Facebook ceasing distribution of Canadian news, significantly impacting Canadian news media publishers.