Big streaming companies such as Netflix, Disney Plus, Amazon, and Spotify have received a temporary reprieve from paying for Canadian content, thanks to a recent Federal Court of Appeal decision. The court will first hear their appeal against a Canadian Radio-television and Telecommunications Commission (CRTC) ruling before any payments are required.
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CRTC’s Canadian Content Payment Order
In June 2023, the CRTC mandated that foreign streaming platforms must contribute 5% of their annual Canadian revenues to a fund aimed at supporting Canadian content production. This includes local TV and radio news. The decision was made under the new Online Streaming Act, which became law earlier in 2023.
However, major global streaming services challenged this order in court, arguing against the payments. The estimated annual contributions for companies like Netflix and Disney Plus would amount to at least $1.25 million each.
Court Agrees to Hear the Appeal
Earlier this month, the Federal Court of Appeal agreed to hear the case. Justice Wyman Webb granted a temporary pause on the payment requirements until the legal process is completed. The judge acknowledged the streamers’ concerns that, if they made payments but later won the appeal, recovering the funds would be impossible.
To minimize delays, the court set an expedited schedule. The hearing is scheduled for June 2025, well before the payments are due on August 31, 2025.
Reactions to the Court’s Decision
The CRTC stated that the Online Streaming Act was designed to modernize Canada’s broadcasting framework. It pledged to balance thorough consultations with swift action to build a new regulatory structure.
Meanwhile, Kevin Desjardins, president of the Canadian Association of Broadcasters, expressed disappointment with the court’s decision. However, he remains hopeful that the case will be resolved quickly to ensure much-needed funding for Canadian news and other productions can flow back into the media system next year.
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What’s Next?
As the case unfolds, the outcome will have significant implications for the Canadian media landscape and streaming giants. The June 2025 hearing will determine whether the CRTC’s ruling will stand, potentially shaping the future of Canadian content production funding.
Stay tuned for updates as this pivotal case develops.
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