The Canadian government is seeking to eliminate mandatory financial contributions that streaming services like Netflix make toward Canadian content, according to a court document reported by Global News.
Global News reports that the filing indicates Ottawa aims to remove the requirement for streamers to pay into a fund that supports Canadian broadcasting. The change would replace the current system, often called the "Netflix tax," with direct public funding for Canadian content, according to CBC.
The court document, as described by the Wall Street Journal, signals that Canada will stop compelling U.S.-based streaming platforms to help finance domestic broadcasting. The move represents a significant shift from the Online Streaming Act, which the Canadian Radio-television and Telecommunications Commission (CRTC) had used to mandate contributions from foreign streamers.
The plan has drawn criticism from Unifor, a major Canadian union, which condemned what it called a gutting of the Online Streaming Act and warned of further media job losses, according to Yahoo! Finance Canada. Legal expert Michael Geist characterized the filing as confirming that the CRTC's streamer contribution decisions are effectively dead, with a full reset of the Online Streaming Act expected.
The government's proposal would shift the burden of funding Canadian content from foreign streaming companies to Canadian taxpayers. The court document suggests the policy change is part of a broader reconsideration of how the country supports its cultural industries.
Watch for the government's formal legislative proposal and the timeline for phasing out the current streaming contribution requirements.
