The Government’s moves to revive the domestic broadcast industry are part of its broader efforts to support a financially-stressed news and media sector
The Online Streaming Act puts streaming platforms on the same regulatory footing as traditional broadcasters
On 4 June 2024, the Canadian Radio-television and Telecommunications Commission (CRTC) announced its decision on the level of contributions streaming platforms are required to pay into the country’s broadcasting system under the Online Streaming Act (Bill C-11). The Act, which was passed in April 2023, sets out a framework to modernise broadcasting regulation in Canada, including by bringing streaming platforms into the regulatory fold. Tech firms will be required to subsidise certain targeted funds that support the creation of diverse and Canadian-produced media. Under the Act, these platforms are also required to register with and pay regulatory fees to the CRTC similar to traditional broadcasters. The CRTC’s broader plan to implement the Online Streaming Act, whereby setting contribution levels and registration rules is just a part, has been under consultation for over a year, beginning in May 2024 and is projected to be completed by the end of 2025.
Streaming platforms will be required to contribute 5% of their Canadian revenue to support domestic broadcasting
In its decision, the CRTC ruled that streaming services with over C$25m (£14m) in annual revenues will be required to pay 5% of their Canadian revenue to support the domestic broadcasting industry. However, revenue from podcasts, video games, audiobooks and user-generated content will all be exempted from this calculation. For audiovisual platforms, such as Netflix, contributed funds must be allocated to support the creation of news content, Indigenous content, French-language content, content created by diverse groups or other Canadian-created content. Audiovisual services will be allowed to use up to 30% of their total contributions to directly support specific Canadian-produced projects. For audio-only platforms, such as Apple Music, contributions must be made to support local news, community radio and Indigenous or Canadian music projects. The Canadian Government estimates that these new obligations will bring in about C$200 (£114m) annually to support outlets otherwise struggling to compete in broadcast markets.
Mitigating the impacts of platforms and AI on the broader media landscape
The Online Streaming Act is part of the Canadian Government’s broader aims to support and revive the financially-stressed domestic news and media industry. In addition to demanding additional support from streamers, it passed the Online News Act (Bill C-18) in June 2023, creating a news bargaining code to introduce a new revenue stream for traditional news outlets. Other governments, including Australia and the US, have paid similarly special attention to news and broadcast industries, which have been destabilised by the growth of platform-based services. In the UK, a parliamentary inquiry into the “future of news” is also looking ahead to the potential implications of AI on news media revenue models, attempting to preempt further financial challenges to traditional journalism. Outside of regulation, increasing numbers of traditional media stakeholders – from print news outlets to acting and writing trade unions – have developed strategies for, and occasionally made direct partnerships with, AI firms to prevent the unpaid use or replication of their content. While these efforts to protect media industries come at an earlier stage in the AI lifecycle compared to interventions made to address platforms, their effectiveness remains to be seen as the adoption of the technology continues to grow.
