Canada’s broadcast regulator is asking big streaming services to put more money back into local content, meaning companies like Netflix will soon need to contribute 15 percent of what they make in Canada to domestic and Indigenous productions.
The Canadian Radio-television and Telecommunications Commission says the updated rules build on a 2024 policy that made streaming services earning over $25 million a year in Canada put five percent of their revenue into local productions. Now, that requirement is growing to 15 percent, with most of the money going to Canadian film and TV projects and 30 percent set aside for French-language programming.
The change effectively completes the rollout of the Online Streaming Act, a 2023 law that introduced funding rules for digital platforms. According to the CRTC, broadcasters making significant revenue in Canada will be covered, while companies bringing in more than $100 million a year will also have to spend part of their budget on partnerships with Canadian production companies and support for Canadian journalism.
The commission expects the framework to deliver roughly $2 billion in new funding for Canadian and Indigenous programming, including French-language productions, after full implementation. It is also developing a discoverability framework meant to improve the visibility of Canadian content for domestic viewers.
The original Online Streaming Act rules faced immediate opposition from U.S. technology companies and film industry representatives. Apple, Amazon, Spotify, and the Canadian arm of the Motion Picture Association challenged the levy in federal court in an attempt to block or delay its implementation, with legal challenges expected to continue following the CRTC’s latest decision.
CRTC vice-president of broadcasting Scott Shortliffe said the commission operates as a quasi-judicial body with authority comparable to a federal tribunal, meaning challenges to its decisions must go through the Federal Court of Appeal. He added that the regulator plans to continue carrying out its mandate regardless of ongoing court proceedings.
“No one ever likes being regulated,” Shortliffe said. “No one ever likes, particularly, being asked that they should pay more into a system.”
Minister of Canadian Identity and Culture Marc Miller later said the federal government is reviewing the CRTC’s decision, adding that Canadians should be able to access locally produced shows and series through online streaming platforms.
The expanded measures have faced sharp criticism from the U.S. industry. The Motion Picture Association described them as “unprecedented, unnecessary, and discriminatory” investment obligations for American streaming services operating in Canada.
Canadian authorities maintain that the Online Streaming Act complies with the cultural exemption under the Canada-United States-Mexico Agreement. The Motion Picture Association argues the requirements are inconsistent with the terms of the trade agreement.
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