Ottawa says CRTC's new cash requirements from streamers risk price hikes for Canadians
Posted on: Jun 03, 2026 20:30 IST | Posted by: Cbc
The federal soldier authorities testament verbatim its programme and telecommunications regulator to revisit a recent decision to triple the funds that streaming services like Netflix must contribute to Canadian content.
The Heritage Department said in a statement on Wednesday that the Canadian Radio-television and Telecommunications Commission (CRTC)'s new requirements would "impose costs" on streamers "which could ultimately fall on Canadian consumers through higher prices."
"This is not the time to raise the cost for Canadians," Prime Minister Mark Carney told reporters after meeting with his cabinet.
The government also said it is investing $600 million to "provide stability and immediate support to Canada's audio and audiovisual sectors and to keep our culture accessible and affordable for all Canadians."
The Online Streaming Act, which passed in 2023 under the former Trudeau government, enabled the CRTC to order all streaming companies with at least $25 million in annual Canadian revenue to direct a portion of that toward supporting the creation of Canadian content including movies, television and local news.
The CRTC initially set that base contribution at five per cent of a company's Canadian revenue, but then raised it to 15 per cent last week.
Ottawa will now issue a new policy direction to the CRTC to adjust how it is implementing the Online Streaming Act.
The Motion Picture Association, the U.S. Group representing streamers, had called on cabinet to reconsider its approach. The U.S. Ambassador to Canada has also called for the policy to be rescinded.
Under the Broadcasting Act, cabinet doesn't have the authority to directly overturn the regulator's decisions, but must instead direct the CRTC on how to broadly implement the act.
"The CRTC will review any new policy directions as they are released," the agency said.
Culture minister says Ottawa will direct CRTC to review decision on streamers' CanCon contributions
Minister of Identity and Culture Marc Miller said he isn't surprised U.S. Trade Representative Jamieson Greer listed the Online Streaming Act as an irritant, but said the industry is suffering financially and needs help.
Miller said the government is currently reviewing what its new directive to the CRTC will be and wouldn't provide details. But he said platforms will still be expected to contribute to Canadian content.
"This isn't an absolute removal of any responsibility to contribute to the sector, far from that," he said.
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