(Ottawa) The Canadian Radio-television and Telecommunications Commission (CRTC) estimates that it will collect $200 million a year from foreign streaming services such as Netflix and Spotify, which it promises to redistribute “where appropriate.” there is an immediate need” in the Canadian ecosystem
More specifically, the CRTC announced Tuesday that, as part of the implementation of Bill C-11, it will require those commonly called “digital giants” to pay 5% of their profits made in Canada.
This requirement will come into effect beginning with the “2024-2025 broadcast year which begins on 1er September” and the contributions raised will be redistributed in particular to ensure the production of “local news on radio and television”, we can read in the regulations specifying the way in which the reform of the Broadcasting Act applies
The CRTC also promises that the redistribution of money will target “French-language content, indigenous content and content created by and for groups deserving of equity, official language minority communities.”
The entities responsible for paying will be companies that are not affiliated with a Canadian broadcaster and that earn $25 million or more from Canadian broadcasting.
Traditional broadcasters already contribute to the production of Canadian content, and this new directive aims to create a level playing field between tech giants and Canadian broadcasters.
“Typically, in the television and distribution industries, contribution requirements for traditional businesses range from 5% to 45% of their annual revenue. In the radio sector, the requirements range from 0.5% to 4% of their annual revenues,” specifies the CRTC.
The organization chose to redistribute contributions from streaming services through channels that already exist, such as the Canada Media Fund and the Canadian Community Radio Fund.