Toronto, ON: The Consumer Choice Center is calling on the Carney government to repeal the Online Streaming Act following the Canadian Radio-television and Telecommunications Commission’s (CRTC) release of new regulations that increase the contributions online streaming companies like Netflix and Amazon Prime must contribute to so-called “local media funds” from five per cent to 15 per cent of their total Canadian revenue, which will increase costs for consumers and possibly drive foreign providers out of the Canadian marketplace altogether.
Jay Goldberg, the CCC’s North American Affairs Manager, commented on the release of the new regulations.
“Everyone knows that online streaming giants like Netflix and Amazon Prime don’t just take increased costs lying down. These costs are, at a minimum, passed onto consumers in the form of higher prices. At worst, this could lead to foreign streaming providers choosing to leave the Canadian marketplace altogether, which would mean fewer choices for Canadian consumers. No matter how you slice it, this move by the CRTC will negatively impact Canadian consumers,” said Goldberg.
Another key issue with the Online Streaming Act is that it is seen as a major trade irritant by the Trump administration, as streaming providers are predominantly American companies. Republicans in the House of Representatives have already introduced legislation that would call on the United States Trade Representative (USTR) to launch an investigation into the Online Streaming Act, which could then lead to higher tariffs imposed on Canada. The Trump administration has also pointed to the Online Streaming Act as a key sticking point in bilateral trade negotiations.
“Right now, the Carney government should be looking for ways to solve the trade impasse with the United States. One of the top trade irritants recently highlighted by the USTR, Jamieson Greer, is the Online Streaming Act. Instead of forcing American streaming providers to fork over even more of their revenue, the Carney government should be focused on repealing the Online Streaming Act, which fails to benefit consumers while at the same time heightening tensions with the Trump administration, making a renewed trade deal even less likely. The Online Streaming Act ought to be repealed, full stop,” added Goldberg.