Overview
- The attorney general’s office told the Federal Court of Appeal in a July 17 filing that the government intends to eliminate the CRTC’s base contribution rule for streaming services and substitute direct government funding.
- The move follows the CRTC’s decision earlier this year to raise the required contribution for large streamers from 5% to 15% of Canadian revenue, which Ottawa said risked higher prices for consumers.
- Ottawa has previously said it would provide $600 million a year as an alternative funding stream, but the new policy directive that would formalize the change has not yet been published and timing remains unclear.
- Broadcasters and creators reacted uneasily: the Canadian Association of Broadcasters said the court letter’s language did not match what it was told, while some creators warned that regulator-linked payments were a key revenue source; streamers are continuing a legal challenge to the CRTC rules.
- The U.S. trade office has signalled scepticism about whether the rollback will affect Canada’s standing in trade talks, and observers say the decision could reshape CRTC independence, federal budgets, and how Canadian content is supported.