Canadian authorities demand that online streaming services, like Netflix and Spotify, pay a portion of their profits to fund local news and content creation.

Streaming Companies Must Pay 5% of Their Domestic Income

On Tuesday, June 4, the Canadian Radio-television and Telecommunications Commission (CRTC) ordered international streaming companies to contribute 5% of their yearly domestic revenue to a fund that supports the local broadcasting system, as reported by the Toronto Sun.

The fund will finance local television and radio news, Indigenous content, French-language programs, and programs made by people of varied backgrounds.

According to the CRTC, approximately 200 million Canadian dollars ($146 million) will be injected into Canada's broadcasting infrastructure annually. Companies earning CAD 25 million ($18 million) or more from Canadian broadcasting not linked with a Canadian broadcaster would be held financially liable.

Tech companies and more conventional broadcasters both have a hand in making content in Canada, and the new directive is an effort to level the playing field.

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Canada Wants Streaming Tech Firms to Boost Its Culture

According to Radio Canada International, the legislation was proposed in response to last year's bill to ensure that businesses such as Netflix contribute more to Canadian culture.

The government claims the bill would encourage internet streaming services to include Canadian content, which is expected to boost employment opportunities in this nation.

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