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    CRTC Defines Streaming Services Subject to New Broadcasting Rules

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    The CRTC has set the threshold for which online streaming platforms will fall under Canada’s new Online Streaming Act, formerly known as Bill C-11. Streaming services generating over $10 million in Canadian revenue must now register with the regulator.

    The Act, which became law in April, aims to update broadcasting regulations for the digital age. It brings popular streaming platforms like Netflix and YouTube into the fold alongside traditional broadcasters.

    $10 Million Threshold

    In its recent decision, the CRTC stated any streaming service earning above $10 million annually in Canada must comply with the Act by registering with the Commission before November 28th. This includes providing details on their content offerings and subscribership.

    Smaller independent streamers remain exempt from these requirements. The rules target major players like Netflix, Prime Video, and Disney+ generating substantial revenues in Canada.

    Social media platforms must also register, but not individual users sharing content. The CRTC aims to regulate corporate streaming businesses rather than individuals’ online activities.

    What It Means For Streamers

    For in-scope streaming services, the CRTC’s move solidifies their regulatory obligations in Canada’s broadcasting system. Registered platforms must now make content accessible to Canadians and provide data on their operations to the CRTC.

    However, specific Canadian content contribution requirements for streamers remain undetermined. The CRTC will announce these details after further consultations this fall.

    Updating the Broadcasting Act

    Bill C-11’s goal is updating decades-old broadcasting rules for the digital realities of streaming. Supporters argue it helps ensure Canadian stories and voices aren’t drowned out by foreign tech giants.

    Critics counter it gives the CRTC too much authority over online content. But the government maintains the law aims to promote Canadian content rather than police users’ activities.

    As streaming continues disrupting television, modernizing Canada’s broadcasting framework remains a complex task. The CRTC’s threshold represents an early step in balancing innovation and regulation. But negotiating appropriate guardrails for the digital space will involve ongoing discussions.

    Here are some potential implications of the CRTC’s $10 million threshold for regulating streaming services under the Online Streaming Act:

    • Major streaming platforms like Netflix, Disney+, Prime Video will need to register with the CRTC and provide operational data. This increases transparency but also regulatory burden.
    • Threshold focuses obligations on large/established streamers, limiting impact on smaller independent services. But rising platforms may eventually surpass it.
    • Details around Canadian content contributions remain unclear. This will be a key point in upcoming CRTC consultations with streamers.
    • Increased costs for streaming platforms to comply with Cancon could mean price increases passed onto consumers.
    • Streaming platforms will need to ensure accessibility for Canadians and make content available without tying it to specific internet or mobile services.
    • Scope remains on commercial streaming entities, not individual users creating/sharing content. But Critics argue it still increases CRTC’s online authority.
    • Threshold adds clarity on who the Act covers now, but the $10 million line may need revising over time as market evolves.

    Overall the threshold aims to balance regulating major streamers while limiting disruption to consumers and smaller services. But ongoing scrutiny will be required to achieve the right balance.

    Here are some of the main arguments from supporters about how Bill C-11/the Online Streaming Act helps promote Canadian content:

    • Requires streaming platforms like Netflix and YouTube to contribute financially to the creation and promotion of Canadian content, similar to traditional broadcasters. This increases funding for Canadian films/shows.
    • Streaming platforms will be required to make their services and content easily accessible to Canadians. This ensures Canadian viewers can readily find domestic programming.
    • Data reporting mandated by the Act will allow the CRTC to monitor how much Canadian content is being offered and consumed on streaming platforms. This can inform future policies.
    • Establishes a level playing field so streaming services aren’t at an advantage over Canadian broadcasters in terms of content regulation. Helps protect viability of domestic media.
    • Modernizes rules so Canadian content isn’t disadvantaged on new digital platforms compared to traditional television/film distribution models.
    • Ensures tech giants invest in Canada’s cultural landscape rather than just benefiting commercially from it. Strengthens domestic industry.
    • Supports Canadian stories and voices being reflected on popular global streaming platforms viewed by millions of Canadians.

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