Minister of Canadian Identity and Culture Marc Miller holds press conference in the National Press Theatre on June 10, 2026, to speak about the government’s new Safe Social Media Act. The Hill Times photograph by Andrew Meade
BREAKING: Ottawa to scrap all contribution requirements for U.S. streamers
Regulatory | |July 28, 2026
The Liberals are preparing to eliminate all funding requirements for U.S. companies under the Online Streaming Act.
The news comes as the policy, which requires companies like Amazon.com Inc., Apple Inc., and Netflix Inc. to allocate a portion of Canadian revenues to fund domestic news and entertainment programming, faces strong pushback from American industry and political players.
In 2024, the CRTC introduced a five per cent “base contribution” requirement for major streamers, which is currently being challenged by several companies at the Federal Court of Appeal. More recently, Canada’s broadcasting regulator upped the threshold to 15 per cent, which would generate an estimated $2 billion into the Canadian media ecosystem each year.
Last month, Canadian Identity Minister Marc Miller (Ville-Marie—Le Sud-Ouest—Île-des-Sœurs, Que.) asked the commission to review the decision, citing concerns that streamers could raise subscription fees, and promised to issue new policy directions rooted in affordability and consumer choice. Miller also introduced $600 million in new funding intended to provide short-term relief to Canadian producers, which will reportedly be renewed on an annual basis.
However, in a recent letter to the Federal Court of Appeal, the government outlined its intention to “eliminate the base contribution requirement on streaming services and to provide government funding to replace those contributions.”
In effect, removing the base contribution threshold would absolve streamers from any financial obligations to Canada’s media industry, marking a stark contrast from the policy approach adopted by Justin Trudeau’s government, which introduced the Online Streaming Act in 2022.
It’s not clear how the Liberals can remove the base contribution requirement without repealing the Online Streaming Act, considering the CRTC is an independent regulator. Government policy directions, while binding for the CRTC, traditionally focus on high-level matters, as opposed to specific regulations. Policy directions must also undergo extensive public consultations before being finalized.
The July 17 letter was filed in response to questions from Justice David Stratas, who asked whether Ottawa’s recent about-face on the CRTC’s regulations could render the ongoing court challenge moot.
Michael H. Morris, senior general counsel for Attorney General Sean Fraser (Central Nova, N.S.) also promised to provide the court with “updated reports on any forthcoming developments that impact the status of this litigation.”
In particular, Morris said the government’s promised policy directives would be released “in the coming weeks.”
Miller’s office did not provide specific comments on the letter, but reiterated the feds “will not repeal the Online Streaming Act, we will develop a new policy direction that takes into account affordability for Canadians, while providing greater flexibility for those contributing to the broadcasting system.”
“We will not back down from protecting and strengthening the Canadian cultural sector at a time when it needs it most,” read a statement from a spokesperson.
The Wire Report also requested an interview with Miller, which his office said would not be possible because the minister was travelling.
Prime Minister Mark Carney’s (Nepean, Ont.) office did not immediately respond to a request for comment.
Michael Geist, Canada research chair in internet and e-commerce law at the University of Ottawa, told The Wire Report the letter suggests the Liberals will completely reverse the contribution rules.
“That’s about the clearest confirmation that there has been,” he said. “This is a full rethink.”
“Whether in public comments or private comments, the idea is that the announcement they made in late May was covering all payments [from streamers].”
The Globe and Mail had previously reported the Liberals would ask the CRTC to remove requirements forcing streamers to fund local news organizations and speciality broadcasters, though it was not clear whether Ottawa was also looking to axe payments to the audiovisual industry.
In a statement, the CRTC spokesperson Mirabella Salem said, “as this matter is currently before the courts, it would be inappropriate for the CRTC to comment,” and directed questions to the Department of Canadian Heritage.
The Online Streaming Act has long provoked consternation amongst U.S. media companies, but it has also become a target for President Donald Trump’s administration.
Jamieson Greer, Trump’s top trade representative, has repeatedly described the contribution requirements as an “irritant” preventing progress for bilateral discussions about North America’s free trade agreement.
According to analysis from the Computer and Communications Industry Association (of which several top streamers are members), the original five per cent contribution rate would collectively cost U.S. streamers $2.19 billion US by the end of the decade.
