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Streaming
Music 'Streaming Tax' Update Is 'Forthcoming' as CRTC Triples TV Streaming CanCon Contributions to 15%
While it doesn’t directly affect music streaming platforms yet, a CRTC spokesperson tells Billboard Canada that “a decision on the Consultation on Canadian content for audio services is forthcoming."
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The Canadian Radio-television and Telecommunications Commission (CRTC) has increased its base contributions for major audiovisual streaming services like Netflix, Amazon Prime Video and Apple TV.
The federal broadcast regulator has revealed that platforms earning more than $25 million in revenue will be required to pay 15% of their income to Canadian content funds. It’s a 10% increase from the 5% base contribution requirement proposed in 2024.
“The total contributions are expected to stabilize the funding at more than $2 billion in support of Canadian and Indigenous content, such as French-language content and news,” the federal broadcast regulator’s statement reads. “These measures will help ensure that Canadian stories continue to be told and made available to audiences across the country.”
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The CRTC made the decisions as part of its implementation of the Online Streaming Act, in an effort to boost Canadian and Indigenous content discoverability.
To ensure the CRTC’s requests are met, online streaming platforms will be required to take steps to make diverse content available and visible. Details of those requirements have yet to be publicly revealed.
So, what does this mean for music streaming?
A spokesperson for the CRTC tells Billboard Canada, “a decision on the Consultation on Canadian content for audio services is forthcoming, and any changes affecting music streaming services would be set out in a public decision following that process."
As it stands, CRTC regulations state that at least 35% of music played on commercial radio stations must be localized content — a.k.a. CanCon. This standard doesn't extend to music streaming services, with many independent Canadian groups pushing for this change with the 5% base contributions. Currently, rollout is paused.
Still, in March, the CRTC launched a call for applications for FM radio stations to serve Indigenous communities in Toronto and Ottawa.
While nothing explicit has been shared about any shift in financial requirements, Canadian music organizations are chiming in on the recent increase in base contributions for audiovisual streaming services.
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“This decision responds to an observation that our sector has been documenting for years: left to their own devices, streaming platforms do not ensure the visibility of our music,” says Eve Paré, executive director of ADISQ. “While binding measures for digital players still need to be established in subsequent processes, we can welcome the fact that this CRTC discoverability framework is ambitious, and call for its implementation to be equally so.”
This serves as one of the first major changes to the Online Streaming Act since its implementation.
The legislation has evoked much conversation amongst the industry, including across the border. Canada’s federal government is under heavy pressure from the United States to forego the base contributions as part of trade negotiations. Additionally, it became the subject of one of U.S. Congressman Lloyd Smucker’s latest bills earlier this year.
The new decision follows two public hearings in Gatineau, Quebec, on how to support Canadian audio content last September. There, the CRTC heard a wide range of perspectives from nearly 150 groups, including Nettwerk Music Group, Music Canada, CBC/Radio Canada, Amazon Music and more.
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