Bitrate Fights: Canadian authorities introduced the Online Streaming Act three years ago, imposing new funding obligations on major streaming platforms. The OSA is now being fully implemented, with financial commitments reportedly even higher than initially expected. The changes have drawn widespread criticism, particularly from US corporations and film industry representatives.
The Canadian Radio-television and Telecommunications Commission recently introduced a significant update to the Online Streaming Act. The legislation, enacted in 2023, requires major streaming platforms such as Netflix to contribute funding toward Canadian content. The CRTC now says that these financial obligations are being further expanded for companies generating significant revenue from Canadian subscribers.
In 2024, the regulator said that streaming services earning more than $25 million annually in Canada would be required to allocate 5% of their Canadian revenue to support domestic content. Under its latest announcement, the CRTC is increasing the overall levy to 15%. This new framework incorporates the previously established 5% requirement, with most of the funds directed toward Canadian productions. In addition, 30% of the allocation will be reserved for French-language content.
The decision follows CRTC consultations on how to implement the Online Streaming Act. Broadcasting groups earning more than $100 million annually will face additional obligations, including a requirement to direct 30% of certain spending toward partnerships with Canadian production companies. At least 15% of these funds must also support Canadian journalistic content.
According to CRTC representatives, full implementation of the OSA is expected to generate approximately $2 billion in additional funding for Canadian and Indigenous content, including French-language productions. The commission is also developing a new discoverability framework intended to increase the visibility of Canadian programming for domestic audiences.
The original Online Streaming Act rules were opposed by US tech companies involved in streaming and film distribution. Apple, Amazon, Spotify, and the Canadian branch of the Motion Picture Association challenged the framework in Canadian federal court in an effort to block or delay the levy. They are expected to continue pursuing legal avenues in response to the CRTC's latest decisions.
According to CRTC vice-president of broadcasting Scott Shortliffe, the commission is a quasi-judicial body with powers similar to those of a federal tribunal. As a result, organizations seeking to challenge its decisions must do so through the Federal Court of Appeal.
Shortliffe also said the regulator is required to carry out its mandate, meaning it will proceed with implementation without waiting for court rulings. "No one ever likes being regulated," the CRTC vice-president said, adding that "no one ever likes, particularly, being asked that they should pay more into a system."
In a later statement, Minister of Canadian Identity and Culture Marc Miller said the federal government is reviewing the CRTC's decision. He added that Canadians have the right to access locally produced shows and series when using online streaming platforms.
US companies have criticized the latest OSA regulations. In a statement, the MPA described the provisions as "unprecedented, unnecessary, and discriminatory investment obligations on American streaming services operating in Canada."
Canadian officials maintain that the OSA's implementation is consistent with the cultural exemption under the Canada – United States – Mexico Agreement CUSMA. The MPA, however, argues that the requirements violate the terms of the trade agreement.
Canada is imposing a 15% tax on streaming services to support local content
