New Canadian content funding
Canadian government orders regulator to reverse decision on streamer content fees
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Canada's federal government has ordered its broadcasting regulator to scrap a plan that would have tripled fees charged to U.S. streaming giants like Netflix. Culture Minister Marc Miller directed the Canadian Radio-television and Telecommunications Commission — the CRTC — to reverse a decision that would have raised contribution requirements from 5% to 15% of Canadian revenues. In its place, Ottawa will pump $600 million per year into the Canadian content sector, according to Global News.
Prime Minister Mark Carney framed the reversal as a cost-of-living issue. "This is not the time to raise the costs for Canadians," he said, according to AP News. The move comes as Canada and the U.S. are deep in talks to renew their shared trade deal, known as CUSMA.
CRTC's 15% Levy Sparked a Swift U.S. Backlash
The CRTC announced the 15% fee hike on May 21, 2026, as part of its work under Canada's Online Streaming Act. The law was designed to make foreign "web giants" contribute to Canadian film and TV, the same way domestic broadcasters always have. Any streaming service earning over $25 million a year in Canada would face the new rate, according to CityNews Toronto.
The backlash was near-instant. U.S. Ambassador Pete Hoekstra called the levy a "discriminatory trade barrier." The Motion Picture Association's CEO Charles Rivkin said it violated CUSMA, the trade deal between Canada, the U.S., and Mexico. Members of the U.S. House Ways and Means Committee threatened a formal trade investigation into Canada's digital policies, according to CTV News.
Ottawa Swaps Streamer Fees for $600M Taxpayer Fund
Instead of forcing Netflix and Disney+ to pay more, the Canadian government will directly fund the sector itself. The $600 million annual investment is meant to act as "bridge funding" for audio and audiovisual creators while a new, more flexible policy is designed. Minister Miller said, "Canadians should be able to see themselves in the films and series they watch," according to Global News.
The CRTC must now rewrite its rules with a focus on "flexibility, consumer choice, and affordability" rather than fixed revenue levies. Experts say the shift moves the financial burden from U.S. tech companies onto Canadian taxpayers. Market analysts had warned the 15% levy would have pushed monthly streaming bills up by $2 to $5 per subscriber, according to Morningstar.
Critics Call It a Cultural Sellout to Hollywood
Not everyone welcomed the reversal. The Canadian Media Producers Association's chair Kyle Irving said the government may have "sold out Canadian culture in favour of big U.S. tech interests," according to The Logic. Independent Canadian producers now face real uncertainty as funding shifts from private levies back to government grants.
University of Ottawa professor Michael Geist said the government "killed the centerpiece of its broadcasting policy" just two weeks after it was announced. He described the $600 million package as a "payout" to keep the sector quiet while avoiding a trade war. The Online Streaming Act had originally been sold to Canadians as a way to "make web giants pay," according to Michael Geist.
A Trade Deal Looms Over Every Decision
CUSMA — the Canada-U.S.-Mexico trade agreement — is up for renewal in 2026. The U.S. Trade Representative had already flagged Canada's Online Streaming Act as a "trade irritant" in annual reports. The 15% streaming levy gave U.S. negotiators extra leverage, and its removal likely clears a major hurdle for upcoming talks, according to Michael Geist.
The original 5% contribution rule, set in June 2024, had applied to streamers earning over $25 million in Canada. A higher $100 million threshold triggered an added 1.55% fee for a new cultural fund. With the 15% hike now reversed, the CRTC must rebuild its contribution framework from scratch, according to nhregister.com.
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