Canada reverses course on mandatory contributions from foreign streaming platforms

The Canadian government has announced that it will no longer require foreign streaming services such as Netflix, Disney+, and Amazon Prime Video to contribute a percentage of their Canadian revenues to fund domestic television and film production. Instead, the government intends to replace that funding with direct public support. This marks a major shift in Canada's cultural and broadcasting policy.

Why it matters legally:

• The policy stems from the implementation of the Online Streaming Act (Bill C-11), which expanded the powers of the Canadian Radio-television and Telecommunications Commission (CRTC) over online streaming services.

  
  

• The CRTC had proposed increasing mandatory contributions from 5% to 15% of Canadian revenues, a move that prompted legal challenges and criticism from U.S. companies and trade officials, who argued it could violate international trade commitments.

  
  

• The federal government's reversal may affect ongoing litigation and regulatory proceedings before the Federal Court of Appeal and could reshape Canada's approach to regulating digital platforms.

SOURCE: https://www.wsj.com/business/media/canada-to-cease-compelling-u-s-streamers-to-help-finance-domestic-broadcasting-3f969061?utm_source=chatgpt.com