Netflix and Disney want to avoid a million-euro levy
Canada is concerned about the growing number of streaming services threatening its own regional television landscape. accordingly, one intends to ask for contributions from large corporations such as Disney and Netflix. However, this endeavor faces resistance.
Netflix, Disney, and other US streaming providers are opposing the planned streaming tax in Canada. They have called upon a court in the country to halt the proposal of the authorities. These want to levy a five percent levy on the revenues of streaming services in the country to support local TV news and other local content.
The Canadian Film and Television Production Association criticizes the decision of the Canadian Radio-television and Telecommunications Commission (CRTC) from June. The CRTC overstepped its authority and disregarded the billions of dollars that the companies spend annually in Canada. The association represents, among others, Netflix, Walt Disney, Warner Bros. Discovery, and Paramount Global.
The CRTC declined to comment. The matter is now before the court. In June, CRTC chairman Vicky Eatrides said that the levy was intended to alleviate fears that "certain types of content, such as local stories, would no longer be produced or distributed." Or they would scarcely be available because the market would not finance them.
Streaming companies and industry observers had previously warned that the levy could lead to higher prices for millions of Canadian subscribers and that the services might reconsider their presence in Canada. The Canadian Radio-television and Telecommunications Commission had previously announced that payments would begin with the start of the broadcast year 2024-25 and contribute 147 million US dollars annually to the broadcasting system.
Despite the planned levy aimed at supporting local TV news and content, Disney and Netflix, along with other US streaming providers, are vigorously opposing it. This conflict between the Canadian authorities and streaming giants could potentially impact the pricing and availability of streaming services in Canada.
