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Streaming

Canadian Court Pauses So-Called 'Streaming Tax' on Companies Like Spotify, Amazon and Apple

The CRTC mandated major global streaming companies pay 5% of their Canadian revenues into a Canadian content fund, but the Federal Court of Appeal now says the companies won't have to make payments until after their appeal is heard in summer 2025.

Canadian Court Pauses So-Called 'Streaming Tax' on Companies Like Spotify, Amazon and Apple
Photo by Filip on Unsplash

The Canadian government's so-called "Streaming Tax" is on pause.

The CRTC (Canadian Radio-television and Telecommunications Commission) revealed in June 2024 that major global streaming companies would be mandated to pay 5% of their annual Canadian revenues into funds that fuel Canadian content. The decision was part of the Online Streaming Act, new legislation that modernizes Canada's Broadcasting Act for the first time in a generation.


Since then, many of the biggest streaming companies – including Spotify, Amazon, Apple, Netflix and Disney – have been fighting the decision in court. This week, the Federal Court of Appeal decided to put the companies' required payments on hold until their appeal is heard.

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The Canadian Press reports that the payments, estimated to be at least $1.25 million each annually, will not have to be made until the court process is finished. They've agreed to expedite the hearings to June 2025, with the bulk of the money due in August.

While pursuing legal challenges, many of the biggest streaming companies have also launched an online campaign to lobby against the decision in the court of public opinion. A group called DiMA (the Digital Media Association) – whose members include Amazon, Pandora, Spotify, YouTube, Apple and more – launched a website with a petition and letter-writing campaign under the name Stop the Streaming Tax. The campaign has at least one high-profile advocate in musician Bryan Adams, a long-time critic of CanCon regulations.

The 5% contributions "could lead to higher prices for Canadians and fewer content choices," the website argues. "As a result, you may end up paying more for your favourite streaming services and have less control over what you can watch or listen to."

Many Canadian music associations like CIMA (the Canadian Independent Music Association), meanwhile, have praised the CRTC's decision. In June, CIMA's President Andrew Cash called it "good news for the Canadian music sector" and said it “lays the groundwork for a dynamic partnership with digital platforms where Canadian talent can thrive both domestically and internationally."

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The mandated contributions would go to music funds like FACTOR and Musicaction as well as the Canadian Starmaker Fund, to funds to support commercial and community radio, and to the Indigenous Music Office and other Indigenous music incubators.

More on this story as it develops.

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Quebec to Impose Quotas For French-Language Content On Streaming Platforms
Photo by Kenny Eliason on Unsplash
Streaming

Quebec to Impose Quotas For French-Language Content On Streaming Platforms

Bill 109 could impose big changes for streaming services to improve the discoverability of French-language content in Quebec.

Quebec may soon be getting stricter language regulations on streaming services.

Quebec Culture Minister Mathieu Lacombe tabled a new bill on Wednesday (May 21) that aims to add more French-language content to major streaming platforms, as well as increasing its discoverability and accessibility by establishing quotas. The bill will directly impact platforms that offer media content such as music, TV, video and audiobooks, including giants like Netflix and Spotify.

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