“The CRTC is requiring online streaming services making more than $25 million to contribute 5% of their Canadian revenues to support the Canadian broadcasting system.”
The 5% contributions from online streaming services will go to:
- 2% to the Canada Media Fund and/or direct expenditures towards 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 BPOC creators, and/or the Broadcasting Accessibility Fund;
- 0.5% to the Certified Independent Production Funds supporting OLMC producers and producers from diverse communities; and
- 0.5% to the Indigenous Screen Office Fund.
The 5% contributions from audio streaming services will go to:
- 2% to FACTOR and Musicaction;
- 1.5% to a new temporary fund supporting local news production by commercial radio stations outside of the designated markets;
- 0.5% to the Canadian Starmaker Fund and Fonds RadioStar;
- 0.5% to the Community Radio Fund of Canada;
- 0.35% to direct expenditures targeting the development of Canadian and Indigenous content and/or a variety of selected funds; and
- 0.15% to the Indigenous Music Office and a new fund to support Indigenous music.
The CRTC feels this decision balances the playing field in Canada:
“For decades, traditional Canadian television and radio services have financially supported the creation of content made by and for Canadians, and have showcased that content on their services. Meanwhile, online streaming services, which have been operating in Canada for well over a decade, have not been required to contribute in similar ways. In the Commission’s view, online undertakings that benefit from their place in the Canadian broadcasting system by generating significant revenues and drawing significant Canadian audiences should contribute to the system.”
There is a silver lining. Streamers can count their Canadian projects as 2% of their 5%. “Online streaming services will have some flexibility to direct parts of their contributions to support Canadian television content directly.”
My take: This 5% is not actually a tax that will be added to consumers’ bills. However, I’m almost positive streamers will raise their prices by at least 5%, so perhaps it’s a corporate levy, and not a consumer tax. Just get ready to pay more.