Overview
The federal government of Canada has stepped in to pause the implementation of a rule that would have required major streaming services to allocate 15% of their Canadian revenue to local content. Culture Minister Marc Miller has directed the Canadian Radio-television and Telecommunications Commission (CRTC) to review the regulator's recent decision, first announced on May 21, 2026.
What was proposed
The change under review would have raised the spending obligation for operators of large streaming services in Canada from the current 5% level to 15% of their annual Canadian revenue. The CRTC's proposal was part of the regulator's implementation efforts following the passage of the Online Streaming Act.
Federal response and funding
Alongside the instruction to the CRTC, the government unveiled $600 million in federal investments aimed at supporting Canada's audio and audiovisual industries. Officials described the funding as a substitute for the financial flows that Canadian creators and producers were expected to receive under the CRTC's proposed spending requirements.
Government rationale
Government statements indicated concern that the CRTC's higher spending mandate could create additional costs for streaming platforms, costs that the government said ultimately could be passed on to Canadian consumers in the form of higher prices. Minister Miller also indicated that Ottawa will prepare new policy directions to guide how the Online Streaming Act is implemented - the statute that extended domestic broadcasting rules to streaming companies after receiving Royal Assent on April 27, 2023.
Stakeholder reaction and context
The CRTC's proposal had attracted opposition from U.S. officials and Hollywood studios. The federal decision to request a review and to provide substitute funding arrives during a period described as one of elevated tension in trade discussions with the Trump administration.
Implications
Ottawa's action temporarily relieves some of the immediate regulatory pressure on large streaming operators, while redirecting support for Canadian creators through direct federal investments. The government has signaled it will issue further policy direction as it adjusts the implementation path for the Online Streaming Act.
Note: The CRTC initially announced the proposed revision to the streaming spending rule on May 21, 2026, and the Online Streaming Act received Royal Assent on April 27, 2023.