Ottawa plans to end streamer contribution requirement, replace it with public funding

Ottawa says it plans to remove the CRTC’s required contribution from large streaming services and replace that money with government funding, according to a court document filed on July 17. The change would affect the socalled “Netflix tax,” a fee on major streamers that was raised by the broadcast regulator from 5% to 15% of Canadian revenue. The federal government had previously said it would issue a new policy direction to the CRTC and provide about $600 million in annual funding instead. The Canadian Association of Broadcasters said the government’s latest wording does not match what it has heard directly and that it is too soon to draw firm conclusions. Prime Minister Mark Carney said the decision was made with affordability in mind, while the government also faces pressure from U.S. trade officials who have criticized the Online Streaming Act as a trade irritant.