CRTC orders streaming services to pay 5% of Canadian revenue
The Canadian Radio-television and Telecommunications Commission (CRTC) announced that online streaming services operating in Canada must contribute 5% of their Canadian revenues to support the Canadian broadcasting system, starting in the 2024-2025 broadcast year. This decision, resulting from the Online Streaming Act, is expected to generate an estimated $200 million annually for areas including local news, French-language content, Indigenous content, and content from various equity-deserving communities. Online streaming services will have some flexibility in directing parts of their contributions to support Canadian television content directly.
Key Takeaways
- The CRTC’s 5% contribution requirement applies to online streaming services operating in Canada and starts in the 2024-2025 broadcast year.
- The regulator estimates the new obligations will bring in about $200 million per year.
- Funding is earmarked for local news on radio and television, French-language content, Indigenous content, and content made by and for equity-deserving communities, official language minority communities, and Canadians of diverse backgrounds.
- Online streaming services will have some flexibility to direct part of their contributions to Canadian television content directly.
- The decision follows more than 360 submissions and a three-week public hearing with over 120 groups.
Why It Matters
This makes the Online Streaming Act financially concrete: streamers operating in Canada now face a 5% revenue contribution tied to their Canadian business, with obligations beginning in the 2024-2025 broadcast year. The money is targeted at areas the CRTC calls immediate needs, especially local news, French-language content, Indigenous content, and equity-deserving communities. It also shows the CRTC moving from consultation to implementation after four public consultations and a three-week hearing. The next concrete signal to watch is the rollout of the Independent Local News Fund and the commercial radio local news fund consultations the CRTC says are coming soon.
Read full article at canada.ca
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