Canada’s federal government today moved to pull back a landmark CRTC streaming regulation and replace it with $600 million in direct investment, sidestepping a rule that would have compelled Netflix and other large foreign platforms to spend 15% of their Canadian revenues on domestic content, roughly triple what those platforms previously contributed.
Marc Miller, Minister of Canadian Identity and Culture, announced the funding from Gatineau and directed the CRTC to review its May 21 decision. That ruling had imposed new spending requirements on both large foreign streamers and Canadian broadcasters, requiring them to direct 15% of their Canadian revenues toward acquiring or producing Canadian programming.
Ottawa’s stated objection is straightforward, in that compliance costs would likely flow down to subscribers. The $600 million is framed as a bridge to keep money flowing to Canadian creators, producers, and broadcasters while the government develops new CRTC directions through sector consultation.
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Once those rules are in place, the investment level will be adjusted accordingly, meaning the $600 million is transitional, not permanent. Further details are still to come.
The reversal did not happen in a vacuum. The Motion Picture Association, the Washington-based lobbying group representing major streaming platforms, had called on cabinet to reconsider the CRTC’s approach. The U.S. ambassador to Canada went further, calling for the policy to be rescinded outright. The combination of domestic affordability concerns and direct American pressure made the CRTC’s framework politically untenable.
Cabinet cannot directly overturn a CRTC ruling under the Broadcasting Act. Instead, it must issue policy directions on how to broadly implement the underlying legislation, the Online Streaming Act, which was the first major overhaul of the Broadcasting Act since 1991.
Miller framed the investment in cultural terms. “Canadians should be able to see themselves in the films and series they watch and hear their lives reflected in the artists they listen to,” he said.
“That’s why we are investing to support the audiovisual and audio sectors now, while bringing necessary stability as we develop new directions that will ensure Canadian content remains affordable and that our stories continue to shape our identity and how the world sees us.”
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