An opinion piece argues that the CRTC's decision to triple the Canadian content (CanCon) tax for streaming services is misguided, coming at a time when it will further burden Canadians financially. The author contends that such regulation is never good policy, as it forces consumers to pay for content they may not want.
CRTC triples streaming CanCon contributions
The Online Streaming Act, or Bill C-11, requires broadcasters and streaming platforms to showcase Canadian stories and music, contribute to production, and support a diverse broadcasting system. The CRTC now mandates that large online streaming services contribute 15 per cent of their Canadian revenues to Canadian content, triple the 2024 requirement. This makes Canada's streaming framework one of the most aggressive globally, with costs likely passed to subscribers.
Paternalism in cultural policy
Ottawa has been applying outdated regulations to innovative platforms like Netflix, Spotify, and YouTube, which succeed by giving consumers what they want. The government's paternalistic approach forces companies to produce or subsidize Canadian content regardless of demand. The CRTC's move triples down on this strategy, ignoring market feedback that suggests Canadians prefer the platforms as they are.
Market versus mandate
While supporting Canadian artists is important, the media industry is mature enough to thrive on its own. Success should come from meeting consumer demand, not government decree. The internet has lowered barriers to entry, as seen with Justin Bieber launching his career from bedroom videos, contrasting with Shania Twain's era of navigating talent agents and record labels. Applying old regulations to a transformed industry is counterproductive.
Supporters argue CanCon rules protect Canadian culture, but if domestic content isn't succeeding, that's market feedback, not failure. Shielding creators from consumer preferences is backward. Taxpayers already fund the CBC; forcing Canadians to pay again through higher streaming bills is excessive. The CRTC's framework aims to stabilize funding at over $2 billion for Canadian and Indigenous content, a sum extracted from subscribers for content most do not seek voluntarily.
