The federal government announced its plan to remove the financial contribution requirement for online streamers imposed by the CRTC. Instead of the contributions, the government intends to provide funding to support the industry, as stated in a court document dated July 17. This decision contradicts the understanding of the Canadian Association of Broadcasters, which expressed caution in interpreting the communication between the government and the court.

Culture Minister Marc Miller’s office declined to provide further details on whether the elimination of the contribution requirement would be permanent or temporary. This move follows the government’s pledge in early June to issue a new policy directive to the CRTC after the regulator increased contributions for major streaming platforms from 5% to 15% of Canadian revenue. The government also committed to offering $600 million annually to the industry in lieu of these contributions, commonly referred to as the “Netflix tax.”

The U.S. Trade Representative recently noted that Canada may not receive due credit for this decision, despite changing course after the U.S. flagged the Online Streaming Act as a trade concern. Trade Minister Dominic LeBlanc’s visit to Washington coincides with President Donald Trump’s tariff threats against Canadian goods.

Prime Minister Mark Carney emphasized that the decision to end the tax on large streamers for Canadian content was made months ago due to affordability concerns. The Canadian Media Producers Association echoed the importance of supporting Canadian stories through foreign streamers investing a portion of their revenue back into Canadian content.

Despite the government’s stance, opposition figures like NDP MP Heather McPherson and Conservative culture critic Rachael Thomas criticized the move, alleging that it favors U.S. tech and media companies at the expense of Canadian media. The debate continues as stakeholders await the specific details of the new policy directive to be issued to the CRTC.