The federal government intends to extract $200 million from major online broadcasting platforms as of September to finance local, French-speaking or Indigenous content in the country, announces the Canadian Radio-television and Telecommunications Commission (CRTC).
This is a first step for the implementation of the Online Streaming Act (C-11), which received royal assent in spring 2023. The CRTC indicated Tuesday that only online platforms which are not linked to Canadian broadcasters are currently affected.
A 5% share of the Canadian revenues of these large platforms will have to be paid into different funds. This “core contribution” is intended to fund local news on radio and television, as well as indigenous, francophone or minority group content. According to government calculations, this will total around 200 million per year.
“Online streaming services will have a certain flexibility allowing them to allocate part of their contributions directly to supporting Canadian television content,” we can read in the CRTC press release.
Bill C-11 is a reform of Canadian broadcasting law which aims to make online platforms such as Netflix, Disney + or YouTube pay for Canadian content. The CRTC did not want to confirm on Tuesday that these specific platforms will have to go to the cash register in September, but the regulation indicates that these are those which make more than 25 million dollars per year in Canada.
Social media, podcasts, video games and audiobooks are not included in the calculation. The CRTC’s regulations only address “online broadcasting”, such as professional music, films and television series.
The lion’s share of the Canada Media Fund
The largest share of the 5% contribution of the major platforms’ Canadian revenue is allocated to the Canada Media Fund (two percentage points), part of which could also be used to directly produce content in the country. 60% of the funds must be intended to finance content in the English language, and the remainder (40%) for content in French.
Of this contribution, one and a half percentage points must go to independent local news production, half a percentage point must go to the Indigenous Screen Office and the same share for diversity and inclusion funds and certified independent production funds.
For audio, recipients of funds include the Canadian Association of Broadcasters, the Canadian Community Radio Fund, Musicaction and the Radiostar Fund, as well as their English-speaking equivalents.
Hailed by the community
Cultural groups welcomed the CRTC’s decision on Tuesday, immediately after its publication.
“This important measure should make it possible, among other things, to ensure better support for local artists and their talents and thus ensure the influence they deserve,” we can read in a joint press release from five groups representing broadcasting artisans, including the Union of Artists (UDA) and the Guild of Musicians of Quebec (GMMQ).
“For over a decade, foreign broadcast platforms have failed to contribute to the systems and structures that support our news and stories. The decision taken today by the CRTC marks the end of their impunity,” writes the pressure group Friends of the Canadian Media.
Another major part of broadcasting reform concerns the promotion, or “discoverability”, of Canadian content on platforms. CRTC officials did not want to give details on when we will see such obligations for the platforms during a technical briefing with the media on Tuesday.
The timetable provides for implementation of C-11 over several years, including a consultation in spring 2025 to better define what Canadian content means.