SUMMARYCanada’s streaming-content rules have become a point of tension in trade talks with the United States after American negotiators pushed Ottawa to drop requirements that streaming services promote Canadian and French-language content. Prime Minister Mark Carney said Canada would not compromise on sovereignty, the French language, or its culture after the negotiations collapsed. The dispute stems from the 2023 Online Streaming Act, which expanded Canada’s broadcasting framework to online platforms and left the Canadian Radio-television and Telecommunications Commission to determine contribution requirements.
Canada's cultural-content rules have become a flashpoint in its trade fight with the U.S., after American negotiators reportedly demanded that Ottawa drop requirements for streaming services to promote Canadian and French-language content. Canada refused, even as it has already backed away from some financial levies on streamers. "We were not prepared to compromise on our sovereignty, the protection of the French language, and our culture," Prime Minister Mark Carney said in a speech on Saturday after trade talks collapsed. CBC.ca reports: Ottawa has long required broadcasters to promote and support Canadian content (Cancon), all the way back to song quotas for AM radio stations. In 1991, the government brought in the Broadcasting Act. The law states that "the Canadian broadcasting system shall be effectively owned and controlled by Canadians" and that the Canadian broadcasting system should "serve to safeguard, enrich and strengthen the cultural, political, social and economic fabric of Canada." But decades later, the rising popularity in Canada of streaming platforms such as Netflix, YouTube, Amazon Prime and Spotify raised questions about Cancon and broadcasting rules. Video and audio streaming services were not, for example, required to support and promote Cancon, but their TV and radio counterparts were.
Looking to address the imbalance, the former Trudeau government brought forward a bill in 2022 to update the Broadcasting Act, called the Online Streaming Act. "Canadian broadcasters have invested in and introduced us to the incredible Canadian programs that so many of us love. We are updating our laws so online streamers have to contribute in a similar and equitable way," a 2022 government news release said. The legislation was controversial from the start, with the government and supporters saying it was a necessary evolution of Canada's media laws in the digital age, while opponents expressed concerns that it was overreach and an attempt to regulate the internet.
American streamers and digital media companies opposed the legislation fiercely. The bill passed with amendments and became law in April 2023, but the government delegated much of its interpretation -- including how much money streamers would have to contribute to Cancon -- to Canada's broadcast regulator, the Canadian Radio-television and Telecommunications Commission (CRTC). But getting streaming companies to pay up has been a long and confusing saga. [...]. As for why the U.S. government is so invested in the issue? Mariane Bourcheix-Laporte, a postdoctoral fellow in the communication studies and media arts department at McMaster University in Hamilton, said it could be about power.
"The Americans have had, since after World War II, a very strong cultural policy of pushing out American content into the world," Bourcheix-Laporte, who has worked with the CRTC, said. "This has been a strategy -- a soft-power strategy -- for the American government, in parallel to their military strategies and political alliances strategies."