Online streaming services operating in Canada will be required to contribute five per cent of their Canadian revenues to support the domestic broadcasting system, the country’s telecoms regulator said on Tuesday.
The money will be used to boost funding for local and Indigenous broadcasting, officials from the Canadian Radio-television and Telecommunications Commission (CRTC) said in a briefing.
“Today’s decision will help ensure that online streaming services make meaningful contributions to Canadian and Indigenous content,” wrote CRTC chief executive and chair Vicky Eatrides in a statement.
The measure was introduced under the auspices of a law passed last year designed to make sure that companies like Netflix make a more significant contribution to Canadian culture.
The government says the legislation will ensure that online streaming services promote Canadian music and stories, and support Canadian jobs.
Minister of Canadian Heritage Pascale St-Onge told reporters on Tuesday that a decision by the CRTC, which calls for online streaming services to hand over five per cent of domestic revenues, will help stimulate investment in Canadian content.
Funding will also be directed to French-language content and content created by official language minority communities, as well as content created by equity-deserving groups and Canadians of diverse backgrounds.
The release also said that online streaming services will “have some flexibility” to send their revenues to support Canadian television directly.
The measure, which will start in the 2024-2025 broadcasting year, would raise roughly $200 million annually, CRTC officials said. It will only apply to services that are not already affiliated with Canadian broadcasters.
Netflix, Apple TV+, Disney+, Spotify and Amazon did not immediately respond to a request for comment.