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Canada says online streaming services must hand over 5% of their domestic revenues
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Canada says online streaming services must hand over 5% of their domestic revenues
Jun 4, 2024 6:42 AM

OTTAWA, June 4 (Reuters) - Major online streaming

services operating in Canada will be required to contribute 5%

of their Canadian revenues to support the domestic broadcasting

system, the country's telecoms regulator said on Tuesday.

The Canadian Radio-television and Telecommunications

Commission (CRTC) said the money would be used to boost funding

for local and aboriginal broadcasting. The measure would raise

roughly C$200 million ($146 million) a year, they said.

"Today's decision will help ensure that online streaming

services make meaningful contributions to Canadian and

Indigenous content," CRTC chief executive Vicky Eatrides said in

a statement.

The measure was introduced under the auspices of a law

passed last year designed to make sure that firms like Netflix ( NFLX )

and Alphabet Inc ( GOOG )-owned YouTube make more of a contribution to

Canadian culture.

The government says the legislation will ensure that

online streaming services promote Canadian music and stories,

and support Canadian jobs.

The CRTC said the funding would be directed to areas of

what it called immediate need in the broadcasting system, such

as local news on radio and television, French-language content,

and Indigenous content.

The decision is final and comes into effect in

September. It will only apply to services that are not already

affiliated with Canadian broadcasters.

($1 = 1.3676 Canadian dollars)

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