The Broadcasting Act gets an update
On June 4, 2024, The Canadian Radio-television and Telecommunications Commission (CRTC) took a step forward in implementing the Online Streaming Act, originally known as Bill C-11.
According to the Government of Canada’s news release, “The Online Streaming Act, which amended the Broadcasting Act, requires the CRTC to modernize the Canadian broadcasting framework and ensure that online streaming services make meaningful contributions to Canadian and Indigenous content.”
The Act is designed in such a way that it promotes Canadian content and cultural diversity, representing the true nature of what Canada is and ensuring that Canadian stories and music are widely available on digital platforms.
However, there were many debates held around this step. Some groups perceived it as a positive step with more contribution towards Canadian content, and others argued that the Act’s 5 per cent tax not only hurts consumers but also disrupts the critical role streaming services have played in promoting Canadian talent. One of the major industry stakeholders of this stance is the Digital Media Association (DIMA).
With more people turning to online platforms for music, movies, and shows, the government decided that it was time to update the rules governing digital platforms. The Act made sure there were no special rules for streaming platforms like Netflix, Spotify, and YouTube, and that traditional media companies in Canada, such as TV and radio broadcasters, support Canadian culture by making their content more accessible and discoverable on these platforms.
This was seen as of the utmost importance as this change considers the consumer’s, those who live in Canada’s, side. Investments are being made to local artists, musicians, and filmmakers by requiring streaming platforms to invest in Canadian content, much like how radio stations must play a certain amount of Canadian music.
The Government of Canada’s charter statement on the Act stated, “amendments [to the Broadcasting Act] would further the values that underlie freedom of expression.” Furthering the people’s freedom of expression might help creators and artists who are looking to get out there in the Canadian ecosystem of media make their mark.
The Act also emphasizes updating the policies regarding making programs accessible to persons with disabilities. According to the charter statement, “Clause 5 would update the regulatory policy by adding that the broadcasting system should be regulated and supervised in a manner that facilitates the provision of programs that are accessible without barriers to persons with disabilities. The Commission’s power to make orders in clause 10 would include orders imposing conditions respecting access by persons with disabilities to programming, including the identification, prevention and removal of barriers to such access.”
The tax obligations made by online streaming services would be directed to areas of “immediate need in the Canadian broadcasting system, such as local news on radio and television, French-language content, Indigenous content, and content created by and for equity-deserving communities, official language minority communities, and Canadians of diverse backgrounds” as per the Government of Canada news release.
DIMA released a national campaign called “Scrap the Streaming Tax” to ensure that “online streaming remains affordable for all Canadians in the face of new costs brought on by the continued implementation of the Online Streaming Act (Bill C-11)” as per their release on Sept 30. The media release by the organization explains their stance on how the bill has led to increased costs for consumers, making music streaming services less affordable.
According to Graham Davies, President and CEO of DIMA, “The streaming tax needs to be scrapped because Canadians are already feeling the pinch from rising inflation and economic pressures. The addition of a streaming tax is an unnecessary burden. This tax is not only a financial strain on consumers, but it also undermines the role that streaming services have played in promoting Canadian culture and artists and enabling the music sector’s investment in talent.”
DIMA created a separate website so that supporters of this campaign can send messages to Members of Parliament urging them to keep the affordability of these services as a priority when these policies are being evaluated. They further started a new hashtag called #ScrapTheStreamingTax so that it is open to the public to join this conversation and get their voices heard.
Other organizations like the Canadian Motion Pictures Association are in support of the bill as they believe that it has created a balance between the needs of Canadian producers, broadcasters, and major streaming platforms.
According to Damon D’Oliveria, “…with the government’s recognition of the significant contribution of the Canadian independent production sector, regulations must also ensure there is a foundation for fair negotiations between independent Canadian producers and huge broadcasters and global content companies.” D’Oliveria is the partner of Conquering Lion Pictures and part of the CMPA Board of Directors.
There were further pushes against the new Bill from smaller companies and niche streaming services that may struggle to afford the new tax levied on them and may end up either increasing the subscription fees or limiting their availability in Canada, thereby moving their services somewhere else. There are still facts that are being clarified, including the balance between supporting Canadian culture and maintaining an affordable and accessible online streaming service landscape.
Meanwhile, Canadians are closely watching as the costs of streaming services rise. The conversation about whether the Act is more beneficial or costly continues, weighing the benefits of keeping or removing the new Act on Canadian media.
If organizations like DIMA continue to lead and speak out, the Parliament may see further campaigns pushing for amendments to the new bill or at least some flexibility in its application. As Canada continues to navigate the evolving digital media landscape, the key challenges are balancing all of it to maintain the welfare of the people and also making the talent pool seen in the world. Whether the Online Streaming Act will achieve this balance remains to be seen, but its long-term impact will shape the future of both the industry and Canadian culture in the digital era. This also includes the legal challenges and varied industry responses that will need to be kept in consideration to find a solution that satisfies both cultural objectives and economic realities.
