CRTC Establishes Base Contributions From Online Streaming Services

The Canadian Radio-television and Telecommunications Commission (CRTC) has published its decision on base contributions from online streaming services as part of the Online Streaming Act, which amended the Broadcasting Act.

The Online Streaming Act requires the CRTC to modernize the Canadian broadcasting framework and ensure that online streaming services make meaningful contributions to Canadian and Indigenous content. After the new legislation was adopted, the CRTC published a regulatory plan and launched four public consultations, including one on what base contributions online services must make to support the Canadian broadcasting system.

The CRTC received more than 360 detailed submissions during this contribution and held a three-week public hearing where it heard from over 120 groups.

Based on the public record, the CRTC is requiring online streaming services to contribute 5 percent of their Canadian revenues to support the Canadian broadcasting system. These obligations will start in the 2024-25 broadcast year and will provide an estimated C$200 million per year in new funding.

The funding will be directed to areas of “immediate need” in the Canadian broadcasting system, such as local news on radio and television, French-language content, Indigenous content and content created by and for equity-deserving communities, official language minority communities and Canadians of diverse backgrounds.

Online streaming services will have some flexibility to direct parts of their contributions to support Canadian television content directly.

Vicky Eatrides, chairperson and CEO of the CRTC, said: “Today’s decision will help ensure that online streaming services make meaningful contributions to Canadian and Indigenous content. The CRTC will continue to move quickly, listen carefully, and take action as we implement the new legislation.”