An association for producers behind Canadian shows like Heated Rivalry, Schitt's Creek, Heartland and Murdoch Mysteries was one of the most active lobbyists in Ottawa in April.

The Canadian Media Producers Association (CMPA) reported 31 contacts with federal officials during its April "Hill Day," ahead of a recent Canadian Radio-television and Telecommunications Commission (CRTC) decision on updated Canadian content rules.

"Far and away the most important topic was the importance of our government defending the Online Streaming Act in negotiations with the Trump administration," CMPA president and CEO Reynolds Mastin said in an interview.

CMPA President Reynolds Mastin speaks with Prime Minister Mark Carney at the CMPA’s Prime Time conference in Ottawa. (Provided by CMPA)

But it seems that lobbying has mostly been shunted aside.

On May 21, the CRTC released its decision that it would now require platforms that make more than $25 million in Canadian revenue to pay into Canadian productions.

Under the ruling, traditional Canadian broadcasters would be required to pay 25 per cent of their annual revenue into Canadian production expenditures, down from 30 to 45 per cent. Online streaming platforms, like Netflix and Disney+, would have to pay 15 per cent, tripling the previous quota of five per cent.

But on Wednesday, Ottawa said it would direct the CRTC to revisit its decision. That came around the same time as the U.S. announced a new 10 per cent tariff on trading partners, including Canada.

In a statement, CMPA chair Kyle Irving said Wednesday the association is "still reviewing this morning’s developments, but with this announcement we are concerned that the federal government has sold out Canadian culture in favour of big U.S. tech interests."

He harkened back to the Digital Services Tax (DST), which initially proposed to tax big tech companies by 3 per cent of their erevenues, but which Ottawa repealed in an effort to appease U.S. interests.

"If the DST file taught us anything, it is that concessions with nothing in return, only result in demands for more concessions," the statement said, calling on Prime Minister Carney to "stand up for Canadian stories, Canadian labour, Canadian independent producers and Canadian cultural sovereignty."

Online streamers, Canadian media producers, tech platforms and Hollywood studios have all voiced their thoughts about new rules for Canadian content compensation.

The Motion Picture Association (MPA), which represents the major streaming platforms, said it “strongly condemns the CRTC’s decision to impose unprecedented, unnecessary and discriminatory investment obligations on American streaming services operating in Canada.”

Opposition Leader Pierre Poilievre called for Prime Minister Mark Carney to overrule the CRTC decision, saying the extra fees would simply be passed on to consumers, and calling the regulations a “Netflix tax.”

CMPA executives speak with NDP leader Avi Lewis during an April advocacy day. (Provided by CMPA)

Carney voiced similar concerns, and in announcing the review of the CRTC decision, he said the government would invest $600 million to "provide stability and immediate support” to Canada's audio and audiovisual sectors.

Irving, in his statement, said U.S. streamers have "consistently raised their prices on Canadian subscribers, year after year," and said "this will continue regardless of any government action."

The Computer & Communications Industry Association, which represents major tech companies like Google, Apple, Amazon and Meta, also released a statement about the decision, saying it has “long opposed” the regime, and that “expanded requirements could cost covered companies nearly $7 billion over the next five years.”

U.S. ambassador to Canada Pete Hoekstra also decried the decision.

Mastin said the reaction from streamers and studios was "disappointing but not surprising."

He pointed out that the U.S. streaming companies still have to make lower contributions than their Canadian counterparts, which "makes it, in our view, extremely difficult, if not impossible, for the American companies to claim that they're being discriminated against."

The Online Streaming Act, passed in 2023, was the target of heavy lobbying by platforms and tech companies, which were concerned about being required to adjust their algorithms to spotlight Canadian content to Canadian users.

It has continued to be controversial, especially in economic negotiations with the United States. The law was deemed a barrier to foreign trade by the U.S. government in three consecutive reports.

As the U.S. and Canada are set to renegotiate the North American free trade deal, Republican lawmakers south of the border have pressured Canada to drop the policy.

The MPA leaned on the trade implications of the CRTC decision in its May 21 statement, arguing the decision “unfairly targets global streamers,” and the regulations “directly violate Canada’s obligations under the United States-Mexico-Canada Agreement.”

“For years, the MPA has consistently made clear that Canada’s Online Streaming Act is an unfair trade practice. We urge the Canadian government to reconsider this approach,” it said.

The CRTC’s decision came after more than a year of deliberations and consultation, which included multiple rounds of weeks-long public hearings, more than 600 submissions and testimonials from 150 different parties.

More Briefs

Major gas company may ask for break from B.C. environmental regulations

Finnish company wants Canada to deploy its airships for civilian and military use

Procurement ombud report urges more oversight, transparency in defence contracting

First Nation advocating for Indigenous-led AI infrastructure support