Global streaming services are cheering after Canada’s government announced a u-turn for the country’s levy on the DSPs’ revenues in the country.
The levy was part of Canada’s Online Streaming Act, and was swiftly dubbed ‘the streaming tax’ by the services as they fought against giving up 5% of their local revenues to support Canadian content and creators.
Yesterday, the government said that the levy “would impose new costs on the companies providing these services, which could ultimately fall on Canadian consumers through higher prices”.
“At a time when Canadians face cost-of-living pressure, now is not the time to make culture and entertainment more expensive,” it added, while announcing its own $600m-a-year investment in Canadian culture to replace the levy.
It’s no surprise to see the music services’ advocacy body DiMA welcoming the news.
“By directing the CRTC [the relevant regulator] to review its framework and stepping up with federal investments for the cultural sector, the government has shown a commendable willingness to listen to the concerns of the digital industry, creators, and everyday consumers,” it said.
