Corrects to remove references to Spotify in headline and body
Investing.com - Canada will require streaming platforms including Netflix Inc. (NASDAQ:NFLX) to spend 15% of their domestic annual revenues on Canadian content under new regulations announced Thursday by the Canadian Radio-television and Telecommunications Commission.
The rules implement the country’s Online Streaming Act, which brings global streaming platforms under domestic broadcasting rules. Online broadcasters will contribute 15%, up from the 5% base contribution they were previously required to make. Traditional broadcasters must contribute 25% of their domestic annual revenues to Canadian content, down from the current requirement range of 30% to 45%.
The regulations apply to broadcasters with annual Canadian broadcasting revenues above $25 million. No broadcasters below that threshold will be required to spend on Canadian content. The total contributions are expected to stabilize funding at more than $2 billion in support of Canadian and Indigenous content.
The CRTC received more than 600 submissions and held two public hearings during consultations on the regulations. Nearly 150 groups participated, including creators, traditional and online broadcasters, production groups, public interest organizations, Indigenous peoples, and official language minority communities.
The regulator also set expectations for the discoverability of Canadian and Indigenous content on streaming platforms. "Today’s decisions are about building a stronger broadcasting system," said Vicky Eatrides, Chairperson and Chief Executive Officer of the CRTC.
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