The CRTC estimates the Online Streaming Act (formerly Bill C-11) will bring in an estimated $200 million per year in new funding for the Canadian broadcasting system.
The estimate, announced at Radiodays North America in Toronto by CRTC Chair Vicky Eatrides, follows a consultation on contributions during which the commission received more than 360 detailed submissions and held a three-week public hearing where it heard from over 120 groups.
Based on that information, the CRTC is requiring online streaming services that make $25 million or more in annual contributions revenues, and that are not affiliated with a Canadian broadcaster, to contribute five per cent of their Canadian revenues to support the Canadian broadcasting system. Those obligations will start in the 2024-25 broadcast year.
The commission says the funding will be directed to areas of immediate need in the Canadian broadcasting system, including local news on radio and television, French-language content, and content created by and for Indigenous, official language minority, and equity-deserving communities. Online streaming services will have some flexibility to direct parts of their contributions to support Canadian television content directly.
Specifically, the decision says contributions from audio-visual 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 contributions from audio online undertakings 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.
Eatrides said during the consultation period, the regulator heard many diverse perspectives that formed the basis for today’s decision.
“At a high level, we heard that Canadians care about content. We heard concerns that certain types of content like local interest stories will not be made or distributed anymore. Or that they will become less available because they will not be funded by market forces alone,” said Eatrides.
“Representatives of local news broadcasters and community radio stations told us that they are struggling to meet the needs of their communities,” she continued. “Groups representing Canadians of diverse backgrounds also told us that they are struggling in the current system and need support to fully participate, so that audiences can continue to see a diversity of stories reflected in the broadcasting system. Some interveners noted that there is no local news fund for radio the same way there is for television.”
She concluded her remarks reflecting on the first speech she gave as commission chair.
“The focus of that speech was on creating the future of the communications sector together, and the importance of doing it quickly,” said Eatrides. “We are moving forward together, and we are moving quickly…today’s decision is a good example of the progress we are making.”
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