The Canadian Radio-television and Telecommunications Commission (CRTC) directed foreign online streamers like Netflix and Spotify to start contributing funds to local news production and Canadian content as part of the Online Streaming Act (Bill C-11).
According to the Globe and Mail, the CRTC told streamers to contribute five percent of their annual Canadian revenue into a fund, which the commission expects will bring $200 million into Canada’s broadcasting system annually. Online streamers who make at least $25 million from Canadian broadcasting would need to contribute.
The CRTC expects this to take effect during the 2024-2025 broadcast year beginning September 1st, 2024.
BREAKING: @CRTCeng announces “major step forward” in implementation of C-11, requiring online streaming services like Netflix to contribute 5% of Canadian revenue to support domestic broadcasting system, injecting upward of $200M per year into sector. Here’s how it breaks down…
— Barry Hertz (@HertzBarry) June 4, 2024
The CRTC will split that five percent between various funds. That includes directing two percent to the Canadian Media Fund (CMF) or direct expenditures on certified Canadian content, 1.5 percent to the Independent Local News Fund, 0.5 percent to the Indigenous Screen Office, 0.5 percent to the Black Screen Office, the Canadian Independent Screen Fund for BPOC creators, and/or the Broadcasting Accessibility Fund and 0.5 percent to the remaining Canadian-certified independent production funds.
The contribution split differs for audio, which will see two percent go to Factor and Musicaction, 1.5 percent to a new temporary fund supporting local news, 0.5 percent to the Canadian Starmaker Fund and Fonds RadioStar, 0.5 percent to the Community Radio Fund of Canada, 0.35 percent to direct expenditures targeting the development of Canadian and Indigenous content and/or a variety of selected funds, and 0.15 percent to the Indigenous Music Office and a new fund to support Indigenous music.
Interestingly, Hertz also tweeted that the CRTC decision is final, and the focus is now on ensuring compliance, suggesting streamers won’t be able to appeal.
Source: CRTC Via: Globe and Mail
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