Canada Imposes 15% Levy on Streaming Platforms to Boost Local Content
The Canadian government is moving ahead with stricter regulations for streaming platforms, introducing a new 15 percent levy aimed at supporting local film, television and digital productions.
The policy is part of the country’s Online Streaming Act, legislation introduced in 2023 to ensure major streaming services contribute financially to Canada’s creative industry.
Under the updated framework announced by the Canadian Radio-television and Telecommunications Commission, CRTC, streaming companies generating more than $25 million annually from Canadian subscribers will now contribute up to 15 percent of their Canadian revenue toward domestic content development.
The levy expands on an earlier 5 percent contribution rule introduced in 2024. Authorities said a significant portion of the funds will support Canadian productions, while 30 percent will be specifically reserved for French-language programming.
The CRTC also disclosed that broadcasting companies earning more than $100 million yearly will face additional obligations, including directing part of their spending toward partnerships with Canadian production companies and local journalism initiatives.
According to the commission, full implementation of the policy is expected to generate nearly $2 billion in additional funding for Canadian, Indigenous and French-language content.
The regulator added that it is developing a new discoverability framework designed to increase the visibility of Canadian productions on streaming platforms.
The policy, however, has sparked criticism from several US-based technology and entertainment companies.
Apple, Amazon, Spotify and the Canadian arm of the Motion Picture Association, MPA, have challenged aspects of the Online Streaming Act in court, arguing that the measures unfairly target foreign streaming services.
In a statement, the MPA described the new rules as “unprecedented, unnecessary, and discriminatory investment obligations” imposed on American companies operating in Canada.
Canadian officials, on the other hand, insist the regulations are consistent with cultural protection provisions under the Canada-United States-Mexico Agreement, CUSMA.
CRTC vice-president of broadcasting Scott Shortliffe said the commission intends to proceed with implementation despite ongoing legal challenges.
“No one ever likes being regulated,” he said, noting that companies rarely welcome increased financial obligations.
Canada’s Minister of Canadian Identity and Culture, Marc Miller, also defended the policy, stating that Canadians deserve access to locally produced stories and programming while using global streaming services.
