CRTC makes landmark decisions on CanCon and discoverability — a breakdown

Canada’s broadcasting regulator is doubling down on rules forcing U.S. streaming companies to help fund news and entertainment content north of the border — despite the policy attracting criticism from the White House. On Thursday, the CRTC released a pair of decisions that triple the contribution requirements for online streamers, which is expected to bring approximately $2 billion into the Canadian media ecosystem each year. “This was an exercise in seeing how the system can be more stable and resilient in the future,” said Scott Shortliffe, vice-president of broadcasting at the commission. The new regulations, implemented under the Online Streaming Act, have been repeatedly targeted by U.S. President Donald Trump’s administration ahead of the forthcoming review of the Canada-U.S.-Mexico Agreement (CUSMA), set to begin in July. In the U.S., Republican lawmaker Lloyd Smucker has also proposed a federal bill that, if passed, would launch an investigation into whether the Canadian policies discriminate against U.S. companies. Amidst the trade uncertainties, Ottawa has softened its language around the law, leaving it unclear whether the regulations will survive the negotiating table. However, for Shortliffe, none of this is the concern of an arm’s-length, quasi-judicial tribunal, such as the CRTC. “Our job is to bring into effect the regulations based on the act that Parliament passed,” Shortliffe told reporters during a press conference. “We’re not involved in trade negotiations we’re not in touch with the government about the status of trade negotiations.”The new spending requirements were accompanied by the commission’s introduction of a ‘discoverability’ framework that seeks to help promote Canadian and Indigenous content at home and across the globe. Large companies face large requirements In its first decision released on Thursday, the CRTC upended longstanding Canadian content requirements by placing increased financial pressure on online streaming companies and large private broadcasters to fund the development of programming. The commission’s decision was the latest installment in its ongoing implementation of the Online Streaming Act, introduced by Justin Trudeau’s government in 2022 to overhaul the country’s broadcasting landscape. In particular, the CRTC has upped the contribution requirements for audiovisual streaming companies (which excludes gaming platforms) that annually generate more than $25 million in Canadian revenues. The initial order, announced in 2024, ensured five per cent of revenues would be transferred to various funding agencies, like the Canada Media Fund, Indigenous Screen Office Fund, and Independent Local News Fund, on a yearly basis. It is subject to an ongoing court challenge from various U.S.-based companies in the Federal Court of Appeal, though initial money transfers have still taken place. Moving forwards, that five per cent contribution threshold has been increased to 15 per cent, the majority of which can be spent directly on developing new Canadian programming in tandem with domestic producers. “Different jurisdictions impose different things on these companies,” said Shortliffe. “We believe will be respected by these companies.” “Whether they choose to challenge them in court… is completely up to them.” It should be noted there’s no publicly available list of qualifying corporations under the legislation. The current court challenge also includes Netflix Inc., Paramount, Pluto Inc., and the Texas-based streamer CrunchyRoll, but analysis from the Computer and Communications Industry Association (of which several of these companies are members) suggests Walt Disney Co. (through Disney+), Roku Inc., Fox Corp.’s Tubi, and Alphabet Inc. (through YouTube) might also be captured. The CCIA has also theorized that the original five per cent contribution rate will collectively cost U.S. streamers $2.19 billion US by the end of the decade. Meanwhile, Canadian broadcasting companies with annual broadcasting revenues exceeding $25 million are henceforth required to spend 25 per cent on Canadian programming. Currently, these companies face contribution requirements between 30 and 45 per cent of domestic revenues. Under the new regulations, large Canadian broadcasters that annually generate more than $100 million, like BCE Inc., Rogers Communications Inc., and Quebecor Inc., will be forced to earmark 15 per cent of their funding contributions to the development of news content. U.S. streamers are not subjected to this requirement, though they will still be forced to send 1.5 per cent of Canadian revenues to the Independent Local News Fund, administered by the Canadian Association of Broadcasters, as outlined in the original base contribution decision. As previously reported by The Wire Report, streaming companies and U.S. industry organizations have been particularly aggrieved by CRTC regulations requiring them to fund Canadian news development, as they consider themselves part of an entirely separate industry. The commission has approximated 10 total entities — combining streamers and Canadian broadcasters — will qualify as “large” broadcasting undertakings, meaning revenues are in excess of $100 million, making them eligible for more specific costing requirements. These companies must also ensure a portion of designated proceeds are geared towards funding French-language content (at least 30 per cent for streamers) or other programming for linguistic minorities (two per cent for streamers and broadcasters). For streamers, the remainder of the funds can be divvied up between a new services of exceptional importance fund, which will include channels like Cable Public Affairs Channel Inc. (CPAC) and the Aboriginal Peoples Television Network (APTN), as well as “enhanced partnerships” with Canadian broadcasters or producers that hold the majority of copyright for a particular program. In his remarks, Shortliffe used the CBC hit North of North to illustrate one such existing partnership, noting how the show is co-produced and distributed by Netflix. At least 30 per cent of a streaming company’s total contributions must go towards these partnerships and, if that threshold is met, the remaining proceeds will be directed toward the Canada Media Fund. Meanwhile, medium-sized entities, which are defined as generated between $25 million and $100 million in annual revenues, are also bound by the new contribution regulations, but the CRTC has not dictated how specifically the proceeds must be allocated. “The Commission recognizes that medium private Canadian broadcasters and medium online streaming services with annual Canadian broadcasting revenues of at least $25 million but less than $100 million need greater flexibility to compete for audiences,” read the decision. “That is why the Commission grants them full flexibility in how they want to allocate their , to direct production expenditures and/or to funds, in the way that best aligns with their business models.” Notably, streamers and broadcasters in this range can also count up to 10 per cent of Canadian programming expenditures on international marketing and promotion of their own domestic programs. In other changes, any streamers or broadcasters that make less than $25 million in annual Canadian revenues are no longer subject to Canadian content financing requirements. “This will overall reduce red tape and administrative burden,” said Shortliffe. It should be noted that the CRTC is still planning an additional consultation on “tailored conditions of service” that will finalize specific requirements for broadcasters and online streamers. Those hearings have not yet been scheduled. CRTC looks to put Canadian, Indigenous content front and centre The commission’s second decision created the aforementioned fund for CPAC, APTN, and other mandatory carry channels for cable companies, but also outlined a new regulatory approach for discoverability, or how easy it is for consumers to find Canadian programming. According to Shortliffe, the policies were developed to ensure domestic and international audiences have access to “a full range of Canadian and Indigenous content and services,” all of which is "prominently presented and promoted.” More specifically, the framework calls for Canadian content to be “given visibility no less favourable” than programming from the U.S. or other countries from online platforms or broadcasters. Eligible companies must also measure future engagement with all Canadian and Indigenous content available through their platform, which must be provided to producers and other partners. This decision also included a promise from the commission to stand up an industry working group responsible for improving metadata in the television sector, which is expected to “help all broadcasting undertakings to direct their discoverability efforts for Canadian and Indigenous content and services and to adapt their offerings to meet audience demand.” The CRTC pledged that efforts to improve discoverability will be monitored and reviewed through annual status reports. dlegree@thewirereport.ca

CRTC makes landmark decisions on CanCon and discoverability — a breakdown

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By Davis Legree
|May 21, 2026

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CRTC makes landmark decisions on CanCon and discoverability — a breakdown

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