Large online streaming services must contribute 15 per cent of their Canadian revenues to Canadian content, the federal broadcast regulator said Thursday.
That’s three times the five-per-cent initial contribution requirement the CRTC set out in 2024, which is being challenged in court by major streamers, including Apple, Amazon and Spotify.
Contribution requirements for traditional broadcasters, which currently pay between 30 and 45 per cent, will be lowered to 25 per cent.
“The total contributions are expected to stabilize the funding at more than $2 billion in support of Canadian and Indigenous content, such as French-language content and news,” the regulator said in a press release.
The CRTC also set out rules on how the money must be spent for both streamers and broadcasters, including contributions toward production funds and direct spending on Canadian content.
Most of the streamers’ financial contribution can go toward content, though the CRTC is imposing rules on how that money must be spent for the largest streamers.
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For instance, streamers with Canadian revenues of more than $100 million annually must direct 30 per cent of spending toward partnerships with Canadian broadcasters and independent producers.
The new financial contribution rules apply to streamers and broadcasters with at least $25 million in annual Canadian broadcasting revenues.
The CRTC made the decisions as part of its implementation of the Online Streaming Act, which the U.S. has identified as a trade irritant ahead of trade negotiations with Canada.
The regulator also said Thursday online streamers will have to take steps to ensure Canadian and Indigenous content is available and visible to audiences.
“This will make it easier for people to find this content on the platforms they use, while giving broadcasters flexibility in how they meet the new expectations,” the CRTC said in the release.
Details of those requirements will be determined at a later time, the CRTC said.
The CRTC is also establishing a new fund to support specific TV channels, including CPAC, the Canadian service that provides direct coverage of political events.
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