Government overrides CRTC on streaming service payment demands
Ottawa will provide $600 million to media instead of requiring Netflix and others to triple their contributions to Canadian content.
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The federal government has directed the CRTC to back down from requiring large streaming services to contribute 15 per cent of their Canadian revenues to Canadian content, Culture Minister Marc Miller announced Wednesday.
Instead, Ottawa will allocate $600 million directly to the media sector. The CRTC's May decision would have tripled streamer contributions under the Online Streaming Act and risked raising costs for Canadian consumers, the government said.
"At a time when Canadians face cost-of-living pressure, now is not the time to make culture and entertainment more expensive," a government statement read.
Miller acknowledged the U.S. trade office's objection to the policy, though he said it was not the only reason for the reversal. "The reality is we're impatient to make sure that the sector stays vital and stays supported," he said.
The industry has been strained while previous CRTC orders — requiring five per cent of revenues — remain frozen in Federal Court of Appeal litigation. That case has not yet been decided.