Major online streaming services in Canada will now be required to allocate 15% of their Canadian revenues to support local content. This new mandate was announced by the Canadian Radio-television and Telecommunications Commission (CRTC) on Thursday.
Details of the New Revenue Mandate
This revised contribution rate is a significant increase from the initial 5% that was established for 2024. This initial requirement has faced legal challenges from leading streaming platforms like Apple, Amazon, and Spotify.
Impact on Traditional Broadcasters
- Traditional broadcasters currently contribute between 30% and 45%. This rate will be reduced to 25%.
The CRTC estimates that these contributions will stabilize funding for Canadian and Indigenous content at over $2 billion. This financial support will encompass various forms of content, including news and French-language programming.
New Spending Rules for Streamers
The CRTC has outlined specific guidelines regarding how this revenue must be allocated. While most of the contributions from the streamers can support content creation, strict expenditure rules are in place for larger companies.
- Streamers with Canadian revenues exceeding $100 million annually must devote 30% of their spending to partnerships with Canadian broadcasters and independent producers.
- The new requirements apply to platforms with minimum Canadian broadcasting revenues of $25 million.
Implementation of the Online Streaming Act
This revenue mandate comes as part of the implementation of the Online Streaming Act. The U.S. has raised concerns over this act, labeling it as a trade irritant during ongoing trade discussions with Canada.
Enhancing Access to Canadian Content
The CRTC also emphasized the need for online streamers to ensure Canadian and Indigenous content is both available and easily discoverable. This initiative aims to facilitate better access to local content for Canadian audiences.
- The specific details on how to implement these accessibility requirements will be announced in the future.
Furthermore, the CRTC is creating a new fund to back specific television channels, including CPAC, which covers political events in Canada comprehensively.
