Streamers like Netflix, Disney Plus get court reprieve from paying for Canadian content

Big global streaming companies like Netflix and Disney Plus are currently challenging a decision by the Canadian Radio-television and Telecommunications Commission (CRTC) that requires them to contribute five per cent of their annual Canadian revenues to a fund dedicated to producing Canadian content. This decision, made under the Online Streaming Act, has sparked a legal battle that is now being heard in the Federal Court of Appeal.

The Federal Court of Appeal recently ruled that the streaming giants will not have to make these payments until their appeal is heard. This means that they will not have to pay the estimated $1.25 million each annually until the court process is completed. The court hearing is set to take place in June, just before the payments are due in August.

The CRTC’s decision, made in June, mandates that foreign streamers must contribute a portion of their revenues to support the production of domestic content, including local TV and radio news. This move is aimed at promoting and sustaining Canadian culture and creativity in the digital streaming landscape.

The parties involved have agreed to an expedited schedule for the court hearing, ensuring a timely resolution to this dispute. The outcome of this legal battle will have significant implications for the future of content production and streaming services in Canada.

It is essential for global streaming platforms to comply with regulations and support the local industry to ensure a diverse and vibrant media landscape. The outcome of this case will set a precedent for how foreign streamers engage with Canadian content and contribute to the cultural fabric of the country.