Commentary
It seems that Canada’s broadcasting regulator and foreign streamers are heading towards a contentious relationship, with the full impact likely taking a couple of years to assess.
The Canadian Radio-television and Telecommunications Commission (CRTC) has a history of challenging conversations with domestic stakeholders like Bell (BCE Inc.), Rogers Communications, and Telus Corp. These companies rely on CRTC licenses for their operations in both the telecommunications and broadcasting sectors, making it crucial to maintain a positive relationship with the regulator.
With the passage of the Online Streaming Act (Bill C-11) last year, the CRTC’s jurisdiction now extends to all audio and visual content on the internet. The act aims to compel streaming companies like Spotify and Netflix to contribute to Canadian content funds to support producers of certified Canadian content.
Despite arguments from streaming companies about their direct investments in Canada’s film and television industry, the CRTC recently mandated that companies with annual Canadian revenues of $25 million or more contribute 5 percent towards supporting the Canadian broadcasting system.
This decision has sparked backlash from industry players like Spotify and the Motion Picture Association Canada, who are concerned about the impact on their operations and investments in Canadian content.
As the CRTC continues to make decisions regarding internet regulation in the coming years, the industry is likely to see further developments that could impact the landscape. While there may be tensions in the short term, the long-term implications remain to be seen.
Ultimately, streaming companies may have to pass on any additional costs incurred due to regulatory requirements to their customers, similar to how cable companies have operated for years.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
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