The Motion Picture Association has slammed new streaming revenue rules in Canada, saying they impose unprecedented, unnecessary and discriminatory investment obligations on U.S. streaming services.
Canada's broadcast regulator, the CRTC, said Thursday large TV streaming services must contribute 15 per cent of their Canadian revenues to Canadian content.
That’s three times the initial contribution requirement the CRTC set out in 2024, which is being challenged in court by streamers including Apple, Amazon and Spotify.
The Motion Picture Association, which represents streamers including Netflix and Prime Video, said those rules triple the cost of doing business in Canada and it's calling on the federal government to reconsider.
"American studios and streaming services are already the top foreign investors in Canada’s film and TV ecosystem — delivering content to Canadian audiences and sharing Canadian stories with the world," the group wrote in a media statement.
The CRTC made the decisions as part of its implementation of the Online Streaming Act, which the United States has identified as a trade irritant ahead of negotiations with Canada.
Canadian Heritage Minister Marc Miller said in a social media post Thursday he is reviewing the CRTC's decision.
"As we carefully assess its impacts, it will always be paramount to ensure that Canadians continue to see themselves reflected on screen, hear Canadian voices, and celebrate what makes this country unique," he wrote.
The CRTC's new rules also change the contribution requirements for traditional broadcasters. Currently paying between 30 and 45 per cent, those fees will be lowered to 25 per cent.
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 contributions can go toward content, though the CRTC is imposing rules on how that money must be spent for the largest streamers.
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.
Large Canadian broadcasters will have to direct at least 15 per cent of their contributions toward news.
Picture Courtesy: THE CANADIAN PRESS/Giordano Ciampini
