The Canadian Radio-television and Telecommunications Commission (CRTC) announced a new rule this week that requires streaming platforms to donate 5% of their domestic revenue to support Canadian-produced content.
The commission said the rule would go into effect for the 2024-25 broadcast season, which begins this fall. The fees are expected to provide $200 million in additional funding each year.
The CRTC said in a press release that the extra money would be used to fund “areas where there is urgent need in Canada’s broadcasting system,” including local news, French-language programming, and community-focused content. Streaming companies would have a say in how their fees are spent, according to the press release.
The new rule applies to online services that generate at least $25 million in Canadian revenue and are not affiliated with a Canadian broadcaster. Revenues from podcasts, video games and audiobooks will not be subject to the additional tax.