Ottawa announced a major policy re-direction Wednesday morning that will “adjust the implementation” of the Online Streaming Act, while asking the CRTC to review its decision imposing further Canadian content spending requirements on foreign streamers.
As part of its efforts to modernize the Broadcasting Act, the commission unveiled changes to the CPE (Canadian Programming Expenditures) requirement for online streaming services earning more than $25 million in annual Canadian revenue, upping their contribution to 15% – including the 5% base contribution requirement set in 2024, which is still before the courts. At the same time, the changes reduced CPE requirements for broadcasters.
Wednesday morning, Canadian Identity and Culture Minister Marc Miller announced a federal investment of $600 million “to provide stability and immediate support to Canada’s audio and audiovisual sectors and to keep our culture accessible and affordable for all Canadians.”
Miller is also directing the CRTC to review its May 21 decision to regulate online streamers and Canadian broadcasters.
“The CRTC’s new requirements would impose new costs on the companies providing these services, which could ultimately fall on Canadian consumers through higher prices,” a Canadian Heritage release stated. “At a time when Canadians face cost-of-living pressure, now is not the time to make culture and entertainment more expensive. To that end, the government will develop new policy directions to adjust the implementation of the Online Streaming Act.”
In addition to affordability, among the stated objectives of the new policy direction are to protect choice for consumers by protecting a healthy and diverse audio and audiovisual sector; ensuring flexibility for both online streamers and Canadian broadcasters; and leveraging new government investments to maintain strong support for Canadian stories, local news, French-language content, Indigenous storytelling, content created by and for equity-deserving groups and official language minority communities, and services of exceptional importance, including CPAC, APTN, and TV5/Unis.
Canadian Heritage says the additional federal investments will ensure Canadian creators, producers and broadcasters receive the financial support they would otherwise have had as a result of the CRTC decisions, with additional details to be announced following consultation with the sector.
“Once the new CRTC rules are finalized, the level of government investment will be adjusted as appropriate,” the release stated.
“Canadians should be able to see themselves in the films and series they watch and hear their lives reflected in the artists they listen to,” said Miller. “That’s why we are investing to support the audiovisual and audio sectors now, while bringing necessary stability as we develop new directions that will ensure Canadian content remains affordable and that our stories continue to shape our identity and how the world sees us.”
The commission told Broadcast Dialogue in an email that it is “aware that the government intends to issue new policy directions to adjust the implementation of the Online Streaming Act.”
“The CRTC will review any new policy directions as they are released,” a spokesperson said.
More to come.
