Five per cent of annual revenue. That’s the figure at the centre of a high-stakes legal face-off between global streaming leaders and Canada’s broadcast regulator—a confrontation that could reshape who pays for the country’s news and cultural output.
Apple, Amazon, and Spotify—names synonymous with global reach—have found themselves on the defensive in a Toronto courtroom, challenging a Canadian Radio-television and Telecommunications Commission (CRTC) order that demands foreign streaming services contribute a portion of their Canadian revenue to support local content and news. The question is simple: Should international digital platforms shoulder the financial burden of sustaining Canada’s media landscape?
At the heart of the dispute is a sweeping regulatory decision from 2024, which requires major foreign online undertakings with over $25 million in annual Canadian broadcasting revenue to allocate five per cent of that sum to Canadian production funds. While traditional broadcasters have long faced similar obligations, streaming giants argue this new levy is inequitable, unfairly targeting foreign players while applying a much lower rate to Canadian radio (just 0.5 per cent).
Timing is everything. The dust-up arrives as the CRTC implements the Online Streaming Act, modernizing decades-old broadcasting mandates to capture the digital era. The legal challenge, consolidated in the Federal Court of Appeal this June, is unfolding amid rising trade tensions, with U.S. tech groups warning that new requirements could sour cross-border relations. The parallel threat of American tariffs on non-U.S. movies lingers in the background, underscoring just how global—and fraught—the stakes have become.
Toronto serves as the legal battleground, but the implications reach far beyond city limits. The funding crisis gripping Canadian newsrooms has sharpened scrutiny on how—and by whom—local journalism is financed. The CRTC, backed by federal officials, contends that foreign streamers have long profited from Canadian audiences without contributing to the nation’s creative ecosystem. Industry advocates argue the system is overdue for a reset, pointing to the collapse of traditional models as audiences flock online.
The mechanics of the order are technical, but the underlying logic is clear: level the playing field between legacy broadcasters and the tech giants transforming how Canadians consume media. Yet streamers counter that they’ve been asked to fund content before the rules of engagement—including a clear definition of “Canadian content”—are even finalized.
As both sides dig in, the broader question endures: In the rapidly shifting landscape of digital media, who ultimately pays to preserve and promote Canadian stories? The outcome of this standoff will echo across boardrooms and newsrooms alike, determining not just who funds Canadian content, but who defines its future.
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Global streamers fight CRTC’s rule requiring them to fund Canadian content
