OTTAWA, ON and GATINEAU, QC—The CRTC is taking a major step forward in the implementation of the Online Streaming Act, which amended the Broadcasting Act, by requiring that online streaming services contribute 5% of their Canadian revenue to the Canadian broadcasting system.
The Online Streaming Act passed last year requires the CRTC to modernize the Canadian broadcasting framework and ensure that online streaming services make meaningful contributions to Canadian and Indigenous content. Immediately after the new legislation was adopted, the CRTC published a regulatory plan and launched four public consultations, including one on what base contributions online services must make to support the Canadian broadcasting system.
During this consultation, the CRTC received more than 360 detailed submissions and held a three-week public hearing where it heard from over 120 groups.
Based on the public record, the CRTC is now requiring online streaming services to contribute 5% of their Canadian revenues to support the Canadian broadcasting system. These obligations will start in the 2024-2025 broadcast year and will provide an estimated $C200 million ($146 million) per year in new funding, the agency said.
The funding will be directed to areas of immediate need in the Canadian broadcasting system, such as local news on radio and television, French-language content, Indigenous content, and content created by and for equity-deserving communities, official language minority communities, and Canadians of diverse backgrounds.
The CRTC, which is an independent quasi-judicial tribunal that regulates the Canadian communications sector in the public interest, also said that online streaming services will have some flexibility to direct parts of their contributions to support Canadian television content directly.
"Today's decision will help ensure that online streaming services make meaningful contributions to Canadian and Indigenous content. The CRTC will continue to move quickly, listen carefully, and take action as we implement the new legislation,” said Vicky Eatrides, chairperson and CEO, CRTC
In making the ruling the CRTC highlighted a few key dates in the development of the policy:
- April 27, 2023: Online Streaming Act (formerly Bill C-11) receives Royal Assent.
- May 8, 2023: CRTC publishes regulatory plan.
- May 12, 2023: CRTC launches three public consultations (base contributions to support Canadian and Indigenous content; registration of online streaming services; and exemption orders and basic conditions of service).
- August 23, 2023: CRTC launches public consultation on regulatory fees.
- September 29, 2023: CRTC publishes decisions on registration and conditions of service.
- November 9, 2023: Government issues direction to CRTC on how to design and implement new regulatory framework.
- November 20 to December 8, 2023: CRTC holds three-week public hearing on base contributions.
- March 21, 2024: CRTC publishes decision on regulatory fees.
- June 4, 2024: CRTC publishes decision on base contributions.
The CRTC also reported that it will soon be launching more public consultations on the amended Broadcasting Act, including on the Independent Local News Fund and a fund to support local news production by commercial radio, and will continue to publish decisions as they are made.
