Prime Minister Mark Carney wants to scale back funding requirements imposed on foreign streaming companies like Netflix and Disney+ to avoid price hikes for Canadians.
The change comes after the Canadian Radio-television and Telecommunications Commission (CRTC) ordered streamers to pay 15 per cent of Canadian revenues toward Canadian content last month. The new requirement was triple the original five per cent contribution requirement initially laid out by the Online Streaming Act.
The Heritage Department told CBC News that the CRTC’s higher contribution requirement would “impose costs” on streamers that could be passed on to Canadian consumers via price increases.
Carney echoed that sentiment when speaking to reporters following a cabinet meeting on Wednesday, saying it’s “not the time to raise the cost for Canadians.”
The government will give the CRTC a new policy direction to adjust its implementation of the Online Streaming Act. However, the new directive is still in review, and the government wouldn’t provide details beyond noting that streamers will still be expected to contribute to Canadian content.
Moreover, the government said it would invest $600 million to support Canada’s audio and audiovisual sectors and to “keep our culture accessible and affordable for all Canadians,” CBC News reported.
Notably, the change comes amid U.S. trade negotiations. The Trump administration has taken issue with the Online Streaming Act, which would impact several major U.S. streaming companies. However, Canada’s Minister of Identity and Culture, Marc Miller, told CBC News that the timing of the review amid trade negotiations was “coincidental.”
We’ve already seen several streaming companies raise prices in Canada over the last couple of years, with some even blaming the Online Streaming Act for the increase.
Music streaming giant Spotify just raised prices in Canada this year, and its previous 2024 price hike came after Spotify challenged the Online Streaming Act and threatened to raise prices in response.
Disney+ hiked its subscription costs in Canada in 2025, as did fellow streaming giant Netflix.
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Source: CBC News
