Ottawa vows to make streaming giants pay for Canadian content but offers no timeline

OTTAWA · Canadian Identity and Culture Minister Marc Miller says the federal government will compel major streaming services to financially support Canadian content, but he declined to provide a timeline for the move. The government's latest budget includes $600 million to bolster domestic news and cultural programming, which Miller described as emergency support. He said the next phase is to ensure large international platforms contribute directly to the content ecosystem from which they profit. Miller also indicated he is reviewing the tax credits these companies receive.

Speaking on CTV Power Play on Monday, Miller said the budget funding is a short-term measure to assist an industry facing declining revenues. He said the goal is to make sure large streamers operating in Canada become good corporate citizens. The minister argued it is a matter of fairness, as these companies benefit from Canadian audiences but often take profits out of the country. He said past legislation has not effectively redirected money into the system.

The Canadian Radio-television and Telecommunications Commission decided in May to require streaming companies to contribute 15 per cent of their Canadian revenues, tripling the previous five per cent obligation. Companies like Netflix and Disney are challenging that decision in court, and the government has not yet collected any funds under the new rule. In June, Ottawa directed the CRTC to review its decision on the contribution amount. Miller said he will take the time needed to issue a new directive that makes sense.

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When asked by host Vassy Kapelos for a timeline, Miller said his department wants to move as quickly as possible but noted the previous regulatory process took three years. He said the $600 million in budget support is not a response to pressure from the United States, which has criticized Canada's Online Streaming Act. Miller, who was part of the government that passed the act in 2023, said the funding is only a partial solution. "This is not an uncomplex discussion, but it is one that, as part of the budget announcement, is only partial in how we have moved to support through cash and through financial support," he said.

Miller said the government also supports streaming companies through generous tax credits. "I want to take another look at how that is being done and how these companies are benefiting from a tax system that they are seeking to remove revenue from," he told Kapelos. Officials say the budget money will help offset falling contributions from traditional cable and satellite providers. Miller said he hopes the current regulatory process will be faster than the last one.

With files from BNN Bloomberg