CRTC decision | Netflix and company will have to contribute

(Ottawa) The decision of the Canadian Radio-television and Telecommunications Commission (CRTC) to force digital giants like Netflix and Spotify to contribute financially to the Canadian system is exciting the media and artistic circles in the country. Authors, producers, musicians and directors speak of a “historic” verdict.

The CRTC’s announcement came early Tuesday. Bill C-11 will require foreign internet streaming platforms to pay 5% of the revenue they earn in Canada to the Canadian audiovisual sector. This requirement will come into effect on 1^er September and should make it possible to raise 200 million annually, estimates the CRTC.

Entities that will be required to pay are those with annual revenues greater than $25 million in Canada, without being affiliated with a local broadcaster.

According to CRTC policy, the amounts thus raised will be channeled in particular to the Canada Media Fund, local radio and television news (qualified as “immediate needs”), French-language content, Indigenous content, as well as communities official language in a minority situation.

Heartwarming welcome

The establishment of a compulsory contribution was clearly expected. Largely positive reactions abounded throughout the day.

In a joint statement, the professional associations of Quebec artists applauded the CRTC order. Directors (ARRQ), musicians (GMMQ), directors (GCR-Québec), radio, television and cinema authors (SARTEC) and the Union of Artists (UDA) believe that this is a first step towards “more equitable treatment of the different broadcasters working in Canada”. This measure should also “ensure better support for local artists,” they stressed.

The president and CEO of the Association québécoise des productions medias (AQPM), Hélène Messier, was also delighted. “This is a historic decision since online distribution platforms have long been disrupting audiovisual content consumption habits. It was high time to restore a balance so that they contribute to the system like traditional broadcasters [tels que Radio-Canada, Télé-Québec, TVA et Noovo]. »

In the evening, however, a discordant bell sound came from Quebecor. In a written statement published on

As for the other broadcasters, Télé-Québec was “satisfied” and Bell Media, owner of Noovo, declined our interview request. For its part, CBC/Radio-Canada mentioned by email “a positive first step to ensure that all stakeholders contribute to the Canadian broadcasting system to support Canadian and Indigenous content.”

Hope for local media

The Professional Federation of Journalists of Quebec (FPJQ) praised the CRTC’s commitment to local news. In an interview, the president of the group, Éric-Pierre Champagne, spoke of “super good news”.

For Éric-Pierre Champagne, the new law sends a clear signal: web giants must contribute to the country’s media ecosystem.

The president of the FPJQ is, however, concerned about the fate of the measures announced Tuesday after the next general election, in the event of a victory for Pierre Poilievre’s Conservative Party. “With all the signals they have been sending for several years, we understand that they are going to want to blow this up. Players could be seriously affected,” he observed.

Disappointment at Netflix and Amazon

The Motion Picture Association – Canada, which represents the interests of major international producers and distributors of films and television shows in Canada, including Walt Disney and Netflix, said it was “disappointed” with the CRTC’s decision. According to the association, streaming services “spent more than $6.7 billion annually to produce quality content in Canada for domestic and international audiences.” Through a press release, the president of the association, Wendy Noss, described the CRTC decision as “discriminatory”.

Similar response from Amazon. The company, which owns Prime Video, says it is “concerned about the negative impact” of the CRTC order. “We are evaluating the decision in its entirety, but this onerous and inflexible financial levy will be detrimental to consumer choice,” said a spokesperson for the American giant by email.

This reaction does not surprise Stéfany Boisvert, professor at the School of Media at the University of Quebec in Montreal. “Yes, foreign platforms spend significant amounts on content production in Canada, but not necessarily on Canadian content production. The nuance is important. Americans come to film in Vancouver, Toronto and Montreal because it’s much cheaper to film here than in the United States. »

According to Stéfany Boisvert, the CRTC issued a timely decision, given the urgency of “finding a solution to the asymmetry that reigned within the media industry in Canada.”

“Webcasters were not regulated in any way in Canada. They had no Canadian content quota and no requirement to invest in Canadian content. We had to find a way to get money from somewhere. Otherwise, we continued to promote the status quo: we let these companies make significant profits in Canada without them having to redistribute anything. »

Satisfaction in Ottawa

In a press scrum in parliament, the Minister of Canadian Heritage, Pascale St-Onge, did not seem to fear that the CRTC’s announcement would lead Netflix, Spotify and company to imitate Meta and organize a boycott. Since last summer, the company behind Facebook and Instagram has blocked the broadcast of news in Canada to avoid obligations arising from C-18, a federal law that requires web giants to compensate news media, which produce content that feeds their platforms.

“The platforms participated in the CRTC hearings. [Elles] had the opportunity to make their prerogatives heard. […] I expect them to comply with Canadian legislation,” declared Pascale St-Onge.

Same story with Alexandre Boulerice. According to the deputy leader of the New Democratic Party, Netflix, Amazon and company should not pass the bill on to consumers. “I think that if they are responsible players, if they are responsible corporate actors towards their society, they will participate a bit like everyone else. »

For his part, the leader of the Bloc Québécois, Yves-François Blanchet, welcomes the CRTC decision. ” It’s good news. […] Will this be enough? No, but it is a piece that is necessary until we have really found the solution and how to manage it,” commented the politician.

With the collaboration of Mylène Crête, The Press