Major Streaming Services Like Netflix to Allocate 15% of Canadian Revenue to Local Content

New Contribution Requirements for Major Streaming Platforms On May 22, 2026, Canada’s broadcasting regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), announced new regulations requiring major streaming service providers like Netflix, Apple, and Amazon to allocate 15% of their Canadian revenue to the production of Canadian and Indigenous content. This new rate is triple the initial 5% contribution rate set by the CRTC in 2024, sending shockwaves through the industry.

Legal Challenges to the 5% Mandate and Background of Regulatory Strengthening When the CRTC set a 5% contribution requirement in 2024, major streaming providers such as Apple and Amazon legally challenged the mandate. In response to this, the CRTC decided to strengthen its position by raising the contribution rate to 15%. According to Global News, this move could escalate tensions between streaming platforms and regulatory authorities. In contrast, traditional broadcasters, who have been subject to contribution rates ranging from 30% to 45%, will see their requirements reduced to 25%. This adjustment represents a significant increase in regulation for streaming platforms while slightly easing the burden on traditional broadcasters.

Implementation of the “Online Streaming Act” This decision is part of the implementation of the “Online Streaming Act,” recently passed by the Canadian Parliament. The Act aims to apply Canada’s broadcasting regulatory framework to digital platforms, and the CRTC has been gradually defining detailed rules as part of this process. In a press release, the CRTC stated that these new contribution requirements are expected to stabilize funding for Canadian and Indigenous content, particularly French-language content and news programs, at over $2 billion.

Detailed Rules on Spending Contributions The CRTC has also set specific rules regarding the use of the contributed funds. While most of the financial contributions by streaming platforms can be allocated to content production, the largest providers will face additional restrictions on how the money is spent. Streaming platforms with annual Canadian revenue exceeding $100 million are required to allocate 30% of their spending to partnerships with Canadian broadcasters or independent producers. Additionally, major Canadian broadcasters must direct at least 15% of their contributions to news programming. These new contribution rules will apply to streaming platforms and traditional broadcasters with annual Canadian broadcasting revenue exceeding $25 million. The regulations will cover audiovisual programs and will apply to both conventional television broadcasters and online services that distribute TV content.

New Requirements for Content Visibility The CRTC also mandated that streaming platforms take measures to ensure Canadian and Indigenous content is readily accessible and visible to viewers. In a statement, the CRTC explained, “This will make it easier for people to find such content on the platforms they use, while providing broadcasters with flexibility in meeting these new expectations.” However, specific details regarding these visibility requirements are yet to be finalized.

Potential Trade Tensions Between the U.S. and Canada The regulation is not merely a domestic policy issue. The U.S. government has labeled the “Online Streaming Act” as a trade irritant, considering it a point of contention in negotiations with Canada. Amid the reshaping of North American trade relations, digital content regulations are emerging as a significant global diplomatic issue.

Impact on the Streaming Industry and Future Implications The CRTC’s decision represents a landmark case that demonstrates how mandatory content investment obligations can expand in specific markets for globally operating streaming services. Although the 15% contribution rate remains lower than the rates imposed on traditional broadcasters, the tripling of the initial 5% requirement underscores the regulator’s firm stance. How major streaming platforms like Netflix will respond to this new regulation, along with the outcome of the legal challenges to the 5% mandate, will be closely watched. As countries continue to explore the regulation of content in the digital age, Canada’s approach may serve as a key reference point for regulators worldwide. ---