Foreign streamers like Netflix will be required to contribute 5% of their Canadian revenue to support Canada’s broadcasting system, starting with the 2024/2025 broadcast year that begins in September. This announcement was made earlier today by the CRTC (Canadian Radio-Television and Telecommunications Commission) as part of its ongoing implementation of the Online Streaming Act, which passed into Canadian law in April 2023. 

Streamers that aren’t affiliated with Canadian broadcasters and that generate CAD$25 million (US$18.2 million) or more in annual Canadian revenue will be required to make this 5% contribution.

The CRTC estimates the move will inject roughly CAD$200 million (US$146 million) a year into Canada’s broadcasting system to address “areas of immediate need” like local news and content from underrepresented groups. 

Specifically, the commission has outlined that the 5% will be directed as follows: 2% to the Canada Media Fund, with some flexibility to direct up to 1.5% towards the production or commissioning of certified Canadian content; 1.5% to the Independent Local News Fund; 0.5% to the Black Screen Office Fund, the Canadian Independent Screen Fund for BIPOC creators and/or the Broadcasting Accessibility Fund; 0.5% to the Indigenous Screen Office Fund; and 0.5% to the Certified Independent Production Funds for supporting diverse producers (under which the Shaw Rocket Fund should be eligible to support kids content producers).

While no specific allocations for children’s programming were announced in the framework, the industry’s hope is that it will be adequately prioritized within the allocations that each of these orgs receives. 

For its part, the Canada Media Fund reiterated the importance of kids content this April when it announced its new annual budget, which contained an increased allocation for children’s and youth programming (from 21% in 2023 to 22% this year).

Updated: The Canadian Media Producers Association welcomed the news as a “watershed moment” for the industry. Said president and CEO Reynolds Mastin: “Canada’s independent media producers create some of the best content on the planet. With the CRTC’s ruling, producers stand ready to collaborate with online streaming services on new projects that will entertain audiences in Canada and around the world.” 

Neal McDougall, assistant executive director of the Writer’s Guild of Canada, also praised this “important first step” forward, while noting that there’s still work to do. “It is an investment in Canada’s economy, promoting Canadian [content and] supporting well-paying, unionized jobs for screenwriters in the Canadian audiovisual broadcasting industry. Canadian screenwriters remain uniquely vulnerable in our regulatory system, and we must ensure the benefits of this vital legislation do not pass them by.” 

Warren Sonoda, president of the Directors Guild of Canada, added: “[It] demonstrates a strong commitment to the sustainability and growth of our film and TV production sector, leveling the playing field and positioning Canada alongside other jurisdictions that have adopted measures to protect their cultural sovereignty and bring their broadcasting systems into the digital age.”

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