Canada u-turns on US streamer spending requirements

Canada’s government is to inject C$600m (£320m) into the country’s audiovisual sector after ditching plans that would have forced operators such as Netflix, Prime Video, Paramount+ and Disney+ to increase their local production spend.

The Canadian Radio-television and Telecommunications Commission (CRTC) said last month that streamer contributions towards local productions would rise from 5% of local revenues to 15%.

The move, which came alongside contribution requirements from local broadcasters, was to be incorporated into the Online Streaming Act that was first introduced in 2024 and would have raised $2bn to support the sector, the CRTC said.

However, the country’s government has now told the regulator to ditch the plans. Prime minister Mark Carney rejected suggestions that the move was only related to ongoing trade talks between the US and Canada, and instead pointed to fears of rising subscription costs for local consumers.

Carney described the change in approach as “another step to reinforce affordability” for Canadians, adding that “this is not the time to raise the costs…”

Culture minister, Marc Miller, admitted that the Online Streaming Act had been “identified… as a trade issue” but said it would be “disingenuous” to suggest it was the only factor.

The Canadian Media Producers Association’s chair, Kyle Irving, questioned the move, however, adding that he was “concerned that the federal government has sold out Canadian culture in favour of big US tech interests.”

C$600m injection

Canada’s government will now inject C$600m annually into the audiovisual sector, with C$220m set aside to support organisations such as non-profit broadcaster CPAC.

Other funding will be used to support indigenous programmes and local production, with the government looking to “provide stability and immediate support to Canada’s audio and audiovisual sectors and to keep our culture accessible and affordable for all Canadians,” it said.

The u-turn follows pressure from the Motion Picture Association, which represents US-based streamers. It had argued that the spending requirements would “undermine the open, market-based system”.

The MPA is already challenging the 5% quota in Canada’s federal court, a move that has frozen funds destined for the arts and culture sector that had been generated by the introduction of the Online Streaming Act in 2024.

MPA-Canada president and managing director, Michele Austin, welcomed the Canadian government’s latest move, adding it “acknowledges that the CRTC’s proposed framework for investment obligations needs to change.”

She continued: “We are encouraged by the government’s commitment to new policy directions. While certain concerns about the Online Streaming Act’s framework for global streamers remain unresolved, we look forward to engaging with leaders in Ottawa to develop a new approach to supporting Canadian stories.”

Pete Hoekstra, US ambassador to Canada, also welcomed the decision, adding: “American firms want to invest in Canada’s creative sector, and a fair, nonburdensome framework makes that possible.”