Ottawa Reverses Course On Streaming Rules
Prime Minister Mark Carney is moving to roll back a rule that would have required major U.S. streaming companies to contribute billions of dollars to Canadian television production.
The decision has triggered sharp criticism from Canada’s cultural sector and opposition parties, who view it as Ottawa’s latest concession during President Donald Trump’s trade war with Canada.
Carney Says Affordability Drove The Decision
Carney insists the move is not connected to trade negotiations with Washington.
Instead, he says the decision was driven by affordability concerns, arguing that imposing the levy could raise streaming subscription prices for Canadian consumers.
Concern Over Higher Subscription Costs
Carney told POLITICO that this is not the right moment to make Canadians pay another C$50.
The argument reflects the government’s concern that new costs imposed on streaming companies could be passed directly to subscribers at a time when household budgets remain under pressure.
New Direction Under The Online Streaming Act
The Liberal government announced Wednesday that it will issue a new policy direction under the Online Streaming Act.
The move will require Canada’s broadcasting regulator to rewrite rules that could sharply reduce, or even eliminate, the payments U.S. streaming companies would have owed to support Canadian television production and promotion.
Trade Pressure Remains In The Background
The announcement came one day after Canada-U.S. Trade Minister Dominic LeBlanc met with United States Trade Representative Jamieson Greer in Washington.
Greer has repeatedly criticized the Online Streaming Act, describing it as a discriminatory measure that unfairly targets American technology companies.
Washington Had Flagged The Law
In January, Canadian Culture Minister Marc Miller suggested that the Online Streaming Act was among the issues the Trump administration wanted addressed before broader trade negotiations could move forward.
Miller refused to elaborate publicly, but the comment reinforced concerns that cultural policy had become part of the wider Canada-U.S. trade dispute.
The Original CRTC Rule
Canada’s broadcasting regulator, the Canadian Radio-television and Telecommunications Commission, had announced last month that foreign streaming companies earning more than C$25 million in Canada would need to direct 15% of their Canadian revenues toward Canadian and Indigenous content.
Miller said Wednesday that the government does not entirely agree with the CRTC’s decision.
Streamers Opposed The Fee
U.S. streaming companies including Netflix, Amazon Prime and Disney+ have opposed the levy.
Carney also met with Netflix CEO Ted Sarandos in New York City last week, though it is unclear whether the Online Streaming Act was discussed during the meeting.
Canadian TV Industry Caught Off Guard
The policy reversal shocked Canada’s television industry and surprised some Liberal MPs, who learned about the decision at a Wednesday caucus meeting after it had already been reported in the media.
Earlier this year, Carney had appeared to have strong support from parts of the Canadian production sector.
Industry Had Seen Carney As An Ally
In January, Carney attended a red-carpet event in Ottawa with Heated Rivalry star Hudson Williams.
Creators of the series had urged Carney and Miller not to weaken the Online Streaming Act, arguing that the law was essential to helping Canadian stories compete with foreign streaming giants.
Producers Accuse Ottawa Of Selling Out
The Canadian production sector had previously celebrated Carney as an ally, telling him that the industry’s 180,000 workers supported him.
Six months later, the same industry is accusing the prime minister of placing American interests ahead of Canadian cultural interests.
Funding Gap Sparks Anger
Kyle Irving, chair of the Canadian Media Producers Association, said the federal government had sold out Canadian culture in favour of major U.S. technology companies.
The CRTC rule would have injected C$2 billion into Canadian programming every year. Instead, the government says it will provide C$600 million to the audio and audiovisual sector.
Bloc Québécois Criticizes Carney
Bloc Québécois Leader Yves-François Blanchet accused Carney of surrendering billions of dollars in exchange for millions that will come from the pockets of Quebecers and Canadians.
Blanchet said the prime minister has made repeated concessions over the past year without securing meaningful gains in return.
Digital Services Tax Comparison
Critics have compared the streaming reversal to the Liberal government’s decision last summer to repeal its digital services tax after Trump threatened to end negotiations.
That tax was expected to raise C$7.2 billion from U.S. technology giants over five years.
Fear Of More U.S. Demands
Irving warned that the digital services tax dispute showed the risk of making concessions without getting anything in return.
He argued that such concessions only lead to further demands, rather than reducing pressure from Washington.
Prices May Rise Anyway
Irving also rejected the idea that rolling back the levy would protect Canadian consumers from higher streaming prices.
He said U.S. streaming platforms have raised prices on Canadian subscribers year after year since entering the market, and warned that those increases will likely continue regardless of government action.
A Fight Over Culture, Trade And Affordability
The reversal places Carney at the centre of a difficult political fight over affordability, cultural protection and trade pressure from the United States.
Supporters of the move argue that Canadians should not face higher streaming bills. Critics say Ottawa is weakening Canadian cultural policy, replacing billions in private-sector contributions with a smaller taxpayer-funded package, and giving U.S. tech giants another victory in a broader trade confrontation.
