Ottawa orders CRTC review of streamer spending rules, citing consumer cost – National

Ottawa says it will direct the CRTC to review its recent decision tripling streamers’ financial contributions to Canadian content.

The government says Ottawa will issue a new policy direction to the CRTC to adjust how it is implementing the Online Streaming Act.

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The CRTC said in May it would require large streaming services like Netflix to contribute 15 per cent of their Canadian revenues to Canadian content.

The government says it will instead provide $600 million to Canada’s audio and audiovisual sectors.

The Motion Picture Association, the U.S. group representing streamers, had called on cabinet to reconsider the current approach and the U.S. ambassador to Canada called for the policy to be rescinded.

Under the Broadcasting Act, cabinet does not have the authority to directly overturn the decision but must instead direct the CRTC on how to broadly implement the Online Streaming Act.