The Canadian Radio-television and Telecommunications Commission (CRTC) has mandated that large online streaming platforms must pay 5% of their revenue in Canada to the government. This is estimated to generate around $200 million annually, which will be used to support local news programs and content producers in the country.
The directive applies to streaming services for both video and music with revenues exceeding $25 million in Canada. Prior to this, major players like Amazon, Apple, Disney, Google, Netflix, Paramount, and Spotify had expressed their opposition during the public consultation period.
However, the order exempts revenue collection from audiobooks, podcasts, video games, and user-generated content (UGC), sparing platforms like YouTube from the payment requirement.
Not all content producers in Canada agree with this mandate. The Canadian Film Institute, for instance, sees parallels with past revenue-sharing agreements with cable television that potentially limit the global reach of Canadian content creators.
Source: Ars Technica Image: Pixabay
TLDR: CRTC has instructed large online streaming platforms to pay 5% of their Canadian revenue to the government to support local news and content producers, with exceptions for certain types of content. Major players have criticized the decision, while some Canadian organizations feel it may restrict global access to Canadian content.
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