Foreign online streaming services must now pay into fund for Canadian news, content

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Foreign online streaming services must now pay into fund for Canadian news, content
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OTTAWA — Online streaming services such as Netflix and Spotify are being told they must start contributing money toward local news and the production of Canadian content.

On Tuesday, the Canadian Radio-television and Telecommunications Commission directed foreign streamers to pay five per cent of their annual Canadian revenues into a fund.

Companies that are not affiliated with a Canadian broadcaster, and that make at least $25 million from Canadian broadcasting, would be required to pay. It forces streaming platforms to contribute to and promote Canadian content — a requirement traditional broadcasters already follow. Motion Picture Association — Canada, which represents platforms including Disney+, Netflix, HAYU, Sony's Crunchyroll, Paramount+ and Pluto TV, said the new mandate doesn't take into account the contributions these companies already make within the Canadian media industry.

"Today’s discriminatory decision will make it harder for global streamers to collaborate directly with Canadian creatives and invest in world-class storytelling made in Canada for audiences here and around the world." "The contributions the commission has set out for foreign streamers begin to rebalance the obligations between all players who benefit from their access to Canadian audiences and advertisers."

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