Washington – The Canadian Radio-television and Telecommunications Commission (CRTC) announced a series of decisions this week aimed at providing preferences for Canadian content in the broadcasting and online streaming sectors. Canada’s decision to significantly expand mandatory local content contributions of online streaming services exacerbates a discriminatory regime, whose burdens fall overwhelmingly on U.S. suppliers. The Computer & Communications Industry Association has long opposed this regime.
Under the new framework, broadcasters with more than $25 million in annual Canadian broadcasting revenues will face mandatory contribution requirements to fund Canadian content. Traditional broadcasters, by definition Canadian, will see their burden reduced while online broadcasters (largely American) will be required to contribute 15% of their revenue to local content, building on the existing 5% base contribution established in 2024. These expanded requirements could cost covered companies nearly $7 billion over the next five years.
Mandatory local content expenditures and prescriptive content-placement rules distort competition and force U.S. firms to subsidize their direct Canadian competitors, on top of the hundreds of millions of dollars U.S. services already invest voluntarily in the Canadian creative sector each year. CCIA urges U.S. policy leaders to initiate an investigation to assess steps that the USMCA envisaged to maintain the balance of benefits under this agreement.
The following can be attributed to CCIA Vice President of Digital Trade, Jonathan McHale:
“Canada’s unfortunate decision to triple local content funding obligations for streaming companies from 5 to 15% is a major step backwards, coming at an inopportune time given the ongoing USMCA review. Imposing legacy broadcasting requirements on innovative digital platforms, which will cost U.S. firms almost $7 billion over the next five years, will only impede Canada’s audiovisual industry’s ability to adapt to an interactive medium with global reach. CCIA supports efforts to promote Canadian and Indigenous creators, but mandatory revenue obligations and prescriptive discoverability rules will raise costs, reduce choice, and discourage investment. CCIA calls on U.S. policymakers to initiate an investigation into the impact of this decision and consider an appropriate and timely response.”
