Large online streaming services operating in Canada will have to contribute 15 per cent of their Canadian revenues toward Canadian and Indigenous content under new rules announced Thursday by the CRTC.
The decision marks a major increase from the five-per-cent initial contribution requirement the federal broadcast regulator introduced in 2024. Major streaming companies, including Apple, Amazon and Spotify, are already challenging the earlier requirement in court.
The CRTC said the updated framework is aimed at stabilizing support for Canadian programming as audiences continue shifting from traditional television and radio to digital platforms.
“The total contributions are expected to stabilize the funding at more than $2 billion in support of Canadian and Indigenous content, such as French-language content and news,” the regulator said in a press release.
The financial contribution rules apply to online streaming services and traditional broadcasters with at least $25 million in annual Canadian broadcasting revenues.
While streamers will face a higher contribution requirement, traditional broadcasters will see their rate lowered. Broadcasters currently contribute between 30 and 45 per cent, but their requirement will drop to 25 per cent under the new framework.
The CRTC also outlined rules for how the money must be spent. Contributions will go toward production funds and direct spending on Canadian content.
For the largest streamers, the regulator added specific spending obligations. Streaming services with more than $100 million in annual Canadian revenues must direct 30 per cent of their spending toward partnerships with Canadian broadcasters and independent producers.
The CRTC made the changes as part of its implementation of the Online Streaming Act. The legislation has drawn attention beyond Canada, with the United States identifying it as a trade irritant ahead of negotiations with Canada.
The regulator also said online streamers must take steps to make Canadian and Indigenous content easier for audiences to find on their platforms.
“This will make it easier for people to find this content on the platforms they use, while giving broadcasters flexibility in how they meet the new expectations,” the CRTC said in the release.
Specific visibility and availability requirements will be set later.
The CRTC also announced a new fund to support specific television channels, including CPAC, the Canadian service providing direct coverage of political events.
