Canada’s government is facing criticism from domestic film and television stakeholders after ordering a review of the Canadian Radio-television and Telecommunications Commission’s (CRTC) recent policy on the Online Streaming Act, a move that some industry representatives say favors U.S. tech interests. However, Marc Miller, Minister of Canadian Identity and Culture, defended the decision as necessary to address regulatory delays and affordability concerns for Canadian consumers.

The government’s intervention follows the CRTC’s May decision to significantly increase the required contributions of foreign-owned streaming platforms toward Canadian content production—from 5 percent to 15 percent of their Canadian revenues. This policy, part of Bill C-11, was aimed at ensuring platforms like Netflix, Disney, and Paramount invest more in domestic productions, including local news. MPA-Canada, representing major Hollywood studios, has challenged the policy in court, leaving the matter unresolved.

Speaking at the Banff World Media Festival in Alberta, Miller dismissed accusations that Ottawa has capitulated to U.S. streaming giants amid lingering trade tensions with the Trump administration, emphasizing that supporting Canadian culture remains a priority. “There isn’t a chance that we won’t stand up and make sure that Canadian culture gets supported,” he said, acknowledging frustrations over the slow regulatory process but stressing the need for action to create stability in the system.

Industry leaders reacting to the government’s decision expressed concern. Warren P. Sonoda, president of the Directors Guild of Canada, highlighted the extensive efforts invested in implementing Bill C-11 and the expectation that major global platforms would contribute fairly. Kyle Irving, chair of the Canadian Media Producers Association, went further, stating that Ottawa’s approach suggests it has “sold out Canadian culture” after a decade-long push for fair contributions.

To address industry frustrations and affordability worries, the government plans to introduce an annual $600-million fund to support Canada’s audio and audiovisual sectors, including local news and niche broadcasters. Details on this program remain pending. Miller indicated the funding would help recalibrate the system and allow “adjustments on the fly” to balance fairness and sustainability.

While acknowledging that public funding alone cannot replace a structurally transformed content ecosystem, Miller noted that any future government could alter laws but might find it harder to withdraw ongoing contributions to the cultural sector. The Department of Canadian Heritage intends to continue pursuing negotiated contributions from streamers, though likely at rates lower than those enforced in some European countries, where mandated investments range from 8 to 25 percent of revenues.

Miller also challenged the notion that higher streamer contributions would directly lead to substantial price increases for Canadian subscribers. He pointed to the complexity of affordability, citing rising production costs and a perception that streaming companies benefit significantly from Canada’s tax credit system—estimated at about $1 billion annually—while criticizing government policies.

The government’s policy shift occurred shortly after Prime Minister Mark Carney met with industry executives, including Netflix co-CEO Ted Sarandos, in New York. Miller denied that these meetings influenced policy and declined to comment on any potential connection between the Online Streaming Act review and ongoing trade negotiations under the United States-Mexico-Canada Agreement, citing the sensitive nature of discussions and the need to protect Canadian jobs.

As the review moves forward, Canada’s cultural sectors remain divided over the best path to ensure fair streaming contributions while fostering a robust and affordable content landscape for Canadians.