Carney government right to order the CRTC not to increase streaming taxes
Toronto, ON: The Consumer Choice Center (CCC) is encouraged by today’s announcement by Culture Minister Marc Miller that he has ordered the Canadian Radio-television and Telecommunications Commission (CRTC) to review its recent decision to triple the amount of revenue foreign streaming giants like Netflix and Amazon Prime must pay the government to contribute to so-called “local media funds.” When the CRTC’s initial decision was announced, the CCC warned that such a decision would result in higher prices for consumers and could lead some streaming providers to exit the Canadian marketplace altogether.
In a statement today, Miller all but admitted the CCC’s position was right.
“The CRTC’s new requirements would impose new costs on the companies providing these services, which would ultimately fall on Canadian consumers through higher prices,” said Miller. “At a time when Canadians face cost-of-living pressures, now is not the time to make culture and entertainment more expensive.”
Jay Goldberg, the CCC’s North American Affairs Manager, commented on Miller’s move.
“The government’s decision today to essentially order the CRTC to reverse course on its plans to triple the streaming tax is a major win for Canadian consumers. The CRTC’s plans would have led to higher costs for consumers, could have led streaming providers to exit the Canadian marketplace altogether, and were causing increased trade tensions with the United States at the worst possible time. While ordering the CRTC not to increase the streaming tax is the right move, the best thing for consumers and Canada’s trading relationship with the United States would be for the tax to be eliminated entirely,” said Goldberg.