Canada Reverses Increased Content Contribution Requirements for U.S. Streamers

The Heritage Department announced that the CRTC’s proposal to raise mandatory contributions from 5 % to 15 % of revenue for U.S. streaming services will not be implemented. The plan had been intended to fund a $2 billion Canadian and Indigenous content pool.

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The 2023 Online Streaming Act requires platforms earning over C$25 million annually in Canada to contribute to domestic programming. In May, the CRTC suggested the 15 % rate to reflect the size of services such as Netflix, Disney+ and Amazon Prime Video.

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Mark Carney, a senior Canadian government official, voiced opposition. The Heritage Department issued the reversal. The CRTC remains the regulator. Trade Minister Dominic LeBlanc met U.S. Trade Representative Jamieson Greer shortly before the announcement. Michele Austin, Managing Director of MPA-Canada, and Netflix CEO Ted Sarandos were also cited.

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• Current contribution: 5 % of streaming revenue.

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• Proposed increase: 15 %, projected to generate $2 billion.

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• Revenue threshold for mandatory payments: C$25 million per year.

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Carney emphasized that raising costs for Canadians at that moment would be inappropriate, stressing price concerns. Officials claim the policy shift is unrelated to ongoing U.S. trade talks and announced forthcoming CRTC guidelines to clarify the Act’s scope.

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Opposition MPs called the reversal a “cynical” move to ease pressure on a pending free-trade deal with the Trump administration. The Motion Picture Association warned that the 15 % rate would undermine the open, market-based system. MPA-Canada welcomed the change, noting the need to adjust the CRTC framework.

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The government denies any link to trade negotiations, yet the reversal was announced less than 24 hours after LeBlanc’s meeting with the U.S. trade representative. No alternative contribution model or timeline for the new CRTC guidelines has been disclosed.

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• “is not the time to raise the cost for Canadians.” — Mark Carney, senior Canadian government official

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• “Today’s announcement acknowledges that the CRTC’s proposed framework for investment obligations needs to change,” — Michele Austin, Managing Director, MPA-Canada

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• “could ultimately fall on Canadian consumers through higher prices.” — Heritage Department spokesperson

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• “We are encouraged by the government’s commitment to new policy directions. While certain concerns about the Online Streaming Act’s framework for global streamers remain unresolved, we look forward to engaging with leaders in Ottawa to develop a new approach to supporting Canadian stories.” — Michele Austin, Managing Director, MPA-Canada

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• “undermines the open, market-based system,” — Motion Picture Association spokesperson

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The government plans to issue revised CRTC guidelines soon, shaping future Canadian content financing. The decision may still affect Canada-U.S. trade discussions, although officials maintain a separation between cultural policy and trade negotiations.

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