Uncertainty over Online Streaming Act Shapes Industry and Trade Tensions

The implementation and adaptation of Canada’s Online Streaming Act has become a focal point for the country’s cultural sector, government policy, and international trade relations. The act, intended to integrate foreign streaming services such as Netflix, Disney+, and Amazon Prime into the framework supporting Canadian film, television, and music, has attracted attention from domestic stakeholders and the United States government, which has labelled the measure a trade irritant with possible implications for future United States-Mexico-Canada Agreement (USMCA) negotiations.

The act’s future remains unsettled, with recent developments adding to industry uncertainty. Earlier this month, Canadian Identity and Culture Minister Marc Miller asked the Canadian Radio-television and Telecommunications Commission (CRTC), the body responsible for implementing the act, to review its decision requiring streaming platforms to contribute 15 percent of their Canadian revenues to support the country’s cultural industries. This intervention followed legal challenges from streaming companies and concerns over how the imposed financial obligations would be allocated.

To address an anticipated funding shortfall as the CRTC reviews its approach, Miller announced a government commitment to provide $600-million annually to the cultural sector. He characterized this as a measure to help fill the gap while longer-term policy is determined. However, Miller is also preparing a policy direction that would recalibrate how funds from foreign streamers are distributed, notably exempting them from supporting local Canadian news and niche broadcasters such as the Indigenous broadcaster APTN.

Alisson Lévesque, a spokesperson for Minister Miller, stated that the government’s intention is to "move quickly to ensure stability and predictability." She indicated that the forthcoming policy direction will consider affordability for Canadians while providing greater flexibility for those contributing to the broadcasting system.

Industry representatives have expressed mixed reactions to the government’s proposed interim funding. Brendan Brady, CEO and executive producer at Accent Aigu Entertainment, which produces the hockey-romance series Heated Rivalry, described the $600-million commitment as a "Band-Aid" and emphasized the need for structural solutions that would provide long-term support for Canadian culture. Brady noted that the annual funding would only be guaranteed while the current government remains in office and called for measures with "teeth" to ensure lasting benefits for the sector.

Brady also highlighted the broader significance of Canadian productions by pointing to Heated Rivalry’s commercial success. The series, produced with Bell Media for Crave, has attracted approximately 10 million viewers per episode in the United States and has been sold internationally, including in Mongolia. The second season is scheduled to begin filming in Ontario and Quebec this summer. Brady described a January meeting with Prime Minister Mark Carney, in which Carney acknowledged the show’s impact and its representation of LGBTQ stories. Brady commented that a symbolic Team Canada fleece jacket, worn by a lead character and tried on by Carney, would not be sent to the Prime Minister until the act’s future is clarified, saying, "If we’re on pause with the government, then the fleece is on pause until we know."

From the perspective of broader industry economics, Kyle Irving, chair of the Canadian Media Producers Association (CMPA), observed that there is still no clarity on how the promised $600-million per year would be allocated. He noted that this figure falls below the estimated $750-million to $900-million that streaming services would have paid collectively each year under the CRTC’s original 15 percent revenue contribution requirement. Irving cited projections that foreign platforms would generate $5-billion to $6-billion in Canadian revenue this year.

Irving also pointed to what he described as a "golden age" for Canadian film and television, with the sector contributing nearly $12-billion to Canada’s GDP and employing more than 180,000 people. He said that prominent Canadian talent, including figures such as Seth Rogen, are increasingly returning from the United States to create content domestically. According to Irving, if the Online Streaming Act is advanced and new funding is secured, this trend could accelerate, potentially marking a high point in Canadian content creation.

Irving further argued that the act would incentivize foreign streaming platforms to share intellectual property ownership with Canadian production partners and ensure key creative roles are filled by Canadians. He framed the stakes as not only cultural but also economic sovereignty, asserting that government policy is moving Canada away from economic reliance on the United States. "This is a great example of us becoming factory owners and workers – versus factory workers," Irving said.

The act’s implementation has also drawn attention at the level of international trade. Washington has described the law as a trade irritant, raising the possibility that it could become a point of contention in future USMCA negotiations. The United States has previously raised concerns about Canadian cultural protection measures, and the ongoing review of the act’s financial provisions may be scrutinized as a potential barrier to market access for American streaming platforms.

Minister Miller has countered criticism that the government has compromised Canadian culture, maintaining that the intent is to support the sector while addressing affordability and flexibility. The government’s approach has been shaped in part by legal actions initiated by streaming companies and the need to ensure compliance with international obligations.

As the regulatory process continues, Canadian producers, broadcasters, and policymakers await further details on how the act will be implemented and what the long-term funding and policy landscape will look like. The outcome of this process carries implications for the structure of Canada’s media industries, the country’s global cultural presence, and the dynamics of North American trade relations.