The Canadian government’s proposed “Streaming Tax,” which would require major global streaming platforms to contribute a percentage of their annual revenue in the country to radio stations, has hit a roadblock over litigation from streaming companies.
The law mandates non-Canadian streaming services earning over $25 million CAD annually to allocate 5% of their Canadian revenue to support Canadian content, with 1.5% directed to local radio. Part of the Online Streaming Act, the legislation marked the first updates to Canada’s Broadcasting Act in decades.
The court has expedited hearings for June 2025, with payments deferred until the legal process concludes. In the meantime, streaming companies, including Spotify, Netflix, Amazon, Apple, and Disney, have mounted public opposition.
Music Canada, representing major global labels like Sony, Universal, and Warner, and DiMA, including Amazon Music, Apple Music, and Spotify, have criticized tying audio streaming to over-the-air radio, which they consider competition. In a letter to the CRTC, they argued, “Radio and audio streaming are not the same,” stating streaming provides broader opportunities for Canadian artists.
Conversely, Canadian music organizations have welcomed the tax, including the Canadian Independent Music Association.
The Online Streaming Act has weighed heavy over Canadian radio, with the CRTC’s two-year freeze on new station applications lasting until August 2023 while the regulatory body focuses on implementing the new rules.
— Reporting by Cameron Coats, in Troy, N.Y.
