Canada’s Regulator Faces Government Reversal on U.S. Streaming Tax

In early June, the Canadian Radio-television and Telecommunications Commission (CRTC) approved a 10 percent levy on foreign streaming services, on top of a 5 percent mandatory contribution for Canadian-content production. A week later, Minister Marc Miller ordered the levy dropped, warning it could jeopardise trade talks and provoke U.S. President Donald Trump. Ottawa replaced it with a $600 million annual taxpayer package for domestic film and TV projects.

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The Online Streaming Act, passed in 2023, requires U.S. digital platforms to fund Canadian-content creation. Implementation stalled after an appeals-court challenge, leaving the law unenforced. The dispute echoes a 2014 standoff when the CRTC demanded Netflix subscriber data, prompting then-Prime Minister Stephen Harper to order the regulator to back down. The clash intersects with negotiations over Canadian automotive, steel and aluminium exports to the United States.

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CRTC chair Vicky Eatrides said the commission remains “focused on supporting a modern and sustainable broadcasting system for Canada” and that its mandate is to “safeguard, enrich and strengthen Canada’s cultural, social, political and economic fabric.” Minister Miller replied the government has not “sold out Canadian culture,” arguing the issue is “more about where the money goes and who pays for it” than fairness.

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At the Banff World Media Festival, Canadian producers and creators questioned the abandonment of foreign-streamer contributions, warning it undermines cultural sovereignty while preserving preferential market access for Canadian cars, steel and aluminium. Delegates called the reversal a retreat from promised funding meant to protect domestic content in an increasingly U.S.-dominated streaming market. Delegates also noted Prime Minister Mark Carney’s involvement in the trade-deal shadowboxing with Trump.

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Because the Online Streaming Act remains blocked by the appeals court, anticipated contributions from U.S. platforms have not been collected or spent. No clear timetable has been provided for when, if ever, the 10 percent levy might be reinstated, leaving the future funding landscape uncertain.

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• “The CRTC’s work continues. We are focused on supporting a modern and sustainable broadcasting system for Canada,” — Vicky Eatrides, Chair, CRTC

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• “How do we adapt frameworks to a broadcasting environment that is being reshaped by new technologies, new business models and changing audience habits?” — Vicky Eatrides, CRTC

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• “This isn’t about ensuring no one pays a fair share. The question is more about where the money goes and who pays for it,” — Marc Miller, Minister

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The pending appeals-court ruling will determine whether the Online Streaming Act can be enforced and the levy reinstated. Simultaneously, Canada’s trade negotiations with the United States will shape the political calculus around foreign-streamer contributions. Industry observers expect further CRTC guidance once the legal and trade uncertainties are resolved.

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