Major Studios Slam Canada for Discriminatory Investment on U.S. Streamers

Key Points:

• The Canadian Radio-Television and Telecommunications Commission (CRTC) has mandated that American streaming services operating in Canada, such as Netflix and Disney+, allocate 15 percent of their Canadian revenues to support local independent media production, including indigenous and French-language content.
• The Motion Picture Association (MPA) has strongly condemned this ruling, calling it unprecedented, discriminatory, and a violation of Canada’s trade obligations under the United States-Mexico-Canada Agreement (USMCA).
• The new regulation follows Canada’s Online Streaming Act, which aims to ensure foreign digital platforms subsidize Canadian film, TV, and music production, but the implementation has faced legal challenges and is seen as increasing operational costs for American streamers.
• Canadian authorities argue the rule targets broadcasters with revenues above $25 million, reducing the burden on smaller local players and promoting more local content creation, while Hollywood studios warn it could deter investment and innovation in the Canadian market.
• This development complicates ongoing trade negotiations between Canada and the U.S., especially after Canada dropped a digital service tax on American tech companies in 2025 to ease tensions amid a tariff war.