CANADA MANDATES STREAMING PLATFORMS TO FUND LOCAL CONTENT

Sun 09 June 2024:

Starting in September, streaming platforms like Netflix and Disney will be required to allocate five percent of their Canadian revenues to support local content, as mandated by Canada’s broadcasting regulator.

The Online Streaming Act, enacted in 2023, sets a legal framework to regulate digital platforms, compelling them to financially support the creation, production, and promotion of Canadian content, including TV shows.

The Canadian Radio-television and Telecommunications Commission (CRTC) projects that this requirement will generate Can$200 million (US$146 million) annually for the country’s broadcasting system. This funding will be directed towards areas of immediate need, such as local news, French-language programming, and Indigenous content.

Streaming services will have some leeway in directing their contributions towards supporting Canadian television content directly.

The law is part of a broader governmental effort to regulate web giants more effectively. However, the Digital Media Association (DiMA), representing major music streaming services, criticized the measure as a “discriminatory tax” on platforms already contributing to Canadian culture.

The Motion Picture Association-Canada also expressed disappointment, arguing that the decision reinforces outdated regulations designed for cable companies. In contrast, Canada’s Heritage Minister Pascale St-Onge argued that the measure would ultimately benefit streamers by reinvesting in content that would return to their platforms.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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