Canada’s streaming tax rises to 15 percent under CRTC plan
The Canadian Radio-television and Telecommunications Commission (CRTC) announced plans to increase the tax on online streaming giants like Netflix and Amazon Prime from five percent to 15 percent of their total Canadian revenue. This decision, implemented under the Online Streaming Act, is criticized for potentially raising consumer costs and exacerbating trade tensions between Canada and the United States, particularly concerning the CUSMA renewal negotiations.
Key Takeaways
- The CRTC announced plans to increase the streaming levy from 5% to 15% of total Canadian revenue.
- Netflix and Amazon Prime are named as examples of services affected by the higher tax.
- The article says the Online Streaming Act funds local media programs and was already viewed as a streaming tax on U.S. companies.
- Jay Goldberg says the change could raise Canadian consumer prices and even push some streaming providers out of Canada, citing Hulu as a prior example.
- CUSMA renewal is a live issue, and the piece says the Online Streaming Act is already a grievance in U.S. trade negotiations.
Why It Matters
The immediate effect is a higher cost base for streaming platforms operating in Canada, with the article arguing those costs will likely be passed through to subscribers. It also tightens the link between Canadian media policy and U.S. trade friction: the piece says the levy is already a sticking point in CUSMA talks and has drawn criticism from both Biden-era and Trump-era trade officials. The key signal to watch is whether the CRTC’s 15% plan survives as CUSMA renewal negotiations begin later this year.
Read full article at niagaraindependent.ca