Canada Steaming Act faces backlash

The Online Streaming Act in Canada continues to stir significant debate as major streaming platforms and record labels push back against proposed reforms.

Central to this opposition is the attempt to apply traditional radio regulations to modern on-demand streaming services.

Music Canada, which represents the major record labels’ Canadian divisions, and the Digital Media Association (DIMA), which represents streaming giants like Spotify and Apple Music, have voiced their concerns directly to the Canadian Radio-television and Telecommunications Commission (CRTC), the agency responsible for enforcing the law.

At the heart of the controversy is the 5% tax on streaming platforms and the broader implications of aligning streaming regulations with those governing radio.

Music Canada and DIMA argue that such a framework fails to acknowledge the fundamental differences between radio and on-demand streaming.

In a letter to the CRTC, the organizations stressed that “radio and audio streaming are not the same.” Streaming services cater to personalized listening preferences, offering a wide array of content that extends beyond local or national borders, unlike traditional radio.

The organizations are urging the CRTC to approach the regulation of streaming platforms with a modern perspective, recognizing how these services differ from broadcasting systems of the past. They argue that streaming services drive global music consumption, enable greater discoverability, and function far more dynamically than radio ever has.

As the implementation process for the Online Streaming Act moves forward, it remains to be seen how the CRTC will balance these competing viewpoints. With the regulatory framework expected to be fully in place by late 2025, the ongoing dialogue between industry stakeholders and regulators will play a pivotal role in shaping the future of Canada’s broadcasting and streaming landscape.