As the U.S. government and major online streamers like Spotify and Apple Music push back against the so-called "streaming tax," the Canadian federal government will make its own investment to "provide stability and immediate support to Canada’s audio and audiovisual sectors."
The Canadian government is stepping in to support Canadian music and media amidst debates around the Online Streaming Act.
This morning (June 3), the government announced that it will offer immediate financial support for music, audio and audiovisual media with a $600 million yearly investment. The release says funding will "provide stability and immediate support to Canada’s audio and audiovisual sectors and keep our culture accessible and affordable for all Canadians."
The mandate is a direct response to the Canadian Radio-television and Telecommunications Commission (CRTC)'s recent announcement of plans to triple the base contribution rate that foreign streaming companies and Canadian broadcasters with a yearly revenue of over $25 million pay to Canadian Content, potentially raising it to 15% up from the original 5%. The legislation has become a target of many U.S. politicians during negotiations of the CUSMA trade agreement between the two countries.
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“Canadians should be able to see themselves in the films and series they watch and hear their lives reflected in the artists they listen to. That’s why we are investing to support the audiovisual and audio sectors now, while bringing necessary stability as we develop new directions that will ensure Canadian content remains affordable and that our stories continue to shape our identity and how the world sees us," says Marc Miller, Canada's Minister of Canadian Identity and Culture.
The base contributions would contribute $200 million in increased funding and benefit organizations like nonprofit music funders FACTOR and Musicaction, Canadian Starmaker Fund and Fonds RadioStar, Community Radio Fund of Canada, Indigenous Music Office and more. A spokesperson from the Minister's office confirms to Billboard Canada that the $200 million in funding will now be contributed by the government.
An additional $220 million will go to Services of Exceptional Importance like the Aboriginal Peoples Television Network (APTN), The Weather Network and CPAC (Cable Public Affairs Channel). An additional $180 million is additional investment that will be determined after consultations with stakeholders in the industry.
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The so-called "streaming tax" was originally mandated by the CRTC in its implementation of the Online Streaming Act, which was passed in 2023, the first major update to broadcast regulations and Canadian Content in many decades. The implementation would require streaming services like Spotify, Apple Music and Amazon Music to financially contribute to fostering Canadian and Indigenous content in the country.
These companies have pushed back against the original contribution rate during a series of court hearings that were held in Gatineau throughout 2025 where more than 150 Canadian companies and groups spoke on the topic of the Online Streaming Act, including ADISQ, FACTOR and Music Canada. The federal investment will account for much of the funding that would have come from the contributions.
"Canadian music is more than entertainment, it is one of the ways we tell our stories, reflect our communities and express who we are as a country," says Meg Symsyk, president & CEO of FACTOR. "At a time when global platforms are consolidating and have unprecedented influence over what audiences discover and consume, it is more important than ever that Canada continues to invest intentionally in its own creators and creative businesses.”
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"This announcement recognizes that a strong cultural sector does not happen by accident," she continues. "It requires ongoing investment, partnership and a commitment to ensuring Canadian voices can be heard and discovered at home and around the world. Canadian songwriters, musicians and music companies have repeatedly demonstrated that they can compete on the world stage when they have access to the right tools and opportunities."
Music Canada, which advocates for all three major record labels in Canada, also welcomes the news. The organization had previously filed to intervene in the legal challenge over the CRTC's decision.
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"We champion policies that help Canadian artists succeed at home, reach global audiences, and compete in today’s music streaming marketplace," says Patrick Rogers, CEO of Music Canada. "Today’s announcement by Minister Miller does that by demonstrating the government’s strong commitment to supporting the cultural sector, while keeping the streaming services Canadians love affordable and recognizing that the tools used to regulate the traditional domestic broadcasting sector won’t work for the entirely different model of streaming."
Miller has also directed the CRTC to review its recent requirements on Canadian broadcasters and online streamers. The government says it is looking to adjust the Online Streaming Act with new policies that strive for accessibility, affordability and flexibility for streamers, all while pushing diverse local content to the forefront.
The government also plans to invest into Indigenous storytelling, which reflects a 2025 national report by the Indigenous Music Office (IMO) that outlined the importance of promoting Indigenous Music in Canada during this pivotal moment. It is also looking to ensure strong support for French-language programs, which recalls Quebec's Bill 109 passed in Dec. 2025 to improve the discoverability of French-language content by imposing content quotas on major streaming platforms. Similar to the Online Streaming Act, Bill 109 received major pushback from the Digital Media Association (DIMA), which represents major streaming platforms like Spotify, Apple Music and Amazon.
"We are encouraged by the government’s clear recognition that championing Canadian culture must go hand-in-hand with protecting affordability, innovation, and consumer choice. By directing the CRTC to review its framework and stepping up with federal investments for the cultural sector, the government has shown a commendable willingness to listen to the concerns of the digital industry, creators, and everyday consumers," DIMA says in a statement.
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Conversely, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) sees the removal of mandatory contributions towards CanCon as detrimental to the growth and visibility of Canadian Content. In a release today, the union says the new $600 million federal contribution "lets billionaire streamers off the hook" and "hands a $600 million bill to Canadian taxpayers."
"We endured years of debate to finally get an Online Streaming Act that would require billionaire-owned streamers to pay the bare minimum into Canadian culture. We thought we were finally there,” says ACTRA national president Eleanor Noble. “Rather than requiring wealthy media companies to modestly invest in Canada’s cultural ecosystem, Ottawa has chosen to transfer that responsibility to Canadian taxpayers under the guise of ‘consumer protection’.”
The spokesperson from the Minister's office says that while audio services will no longer have to pay into funds, the government will continue to work with them on non-monetary actions to promote and foster Canadian Content, including measures for discoverability, an updated MAPL definition of CanCon and more.
