Washington – Today, the Canadian Radio-television and Telecommunications Commission (CRTC) released a decision that would require certain streaming providers to contribute 5% of their revenue to funds supporting the production of Canadian content. This proposed obligation, released as part of the implementation process for the Online Streaming Act, aims to generate $200 million CAD annually in new funding, a significant share of which would be extracted from U.S. suppliers.
Although obligated to pay, U.S. providers would generally be ineligible to access those funds for content they may seek to produce in Canada, given discriminatory qualifying factors.
The Computer & Communications Industry Association has previously criticized Canada’s approach through a white paper detailing how the Online Streaming Act would violate the U.S.-Mexico-Canada Free Trade Agreement (USMCA), a key element of Canada’s overall digital trade-restrictive agenda.
CCIA has advocated for digital trade rules that strengthen the global economy for over 50 years.
The following can be attributed to CCIA Vice President of Digital Trade Jonathan McHale:
“Through their significant investments, U.S. suppliers greatly facilitate the distribution of Canadian content in Canada, the United States, and beyond, opening global markets up to Canadian artists and creators. Thus, they already meet the CRTC’s goal of helping to promote the production of Canadian content.”
“Punishing suppliers of online content with hefty additional funding obligations, 5% of Canadian revenues, is both onerous and unnecessary, given the vitality of the Canadian content market. In fact, as a requirement is likely to increase prices for Canadian consumers, it could have the opposite effect of what was intended.”
“By mandating contributions into a fund U.S. suppliers cannot access, and which discriminates against non-Candian content, the CRTC’s decision is inconsistent with trade commitments Canada made under USMCA. We urge Canada to reconsider this approach and instead reaffirm its U.S. trade commitments.”