Canada to Remove 15% Spending Requirement for Streaming Services

The Canadian federal government plans to remove the requirement for online streaming services to spend 15 percent of their revenues on Canadian content, according to reports on July 30, 2026. This move marks a significant shift in the enforcement of the Online Streaming Act, which sought to hold global digital platforms to the same financial contribution standards as traditional Canadian broadcasters.

The decision follows ongoing tensions between Canada and United States-based streaming giants over the legality and fairness of the levy. Under the original framework of the Online Streaming Act, platforms such as Netflix, Disney+, and Amazon Prime Video were mandated to contribute a percentage of their Canadian earnings back into the domestic production ecosystem to ensure the visibility and creation of local stories.

Industry analysts suggest the government is moving to eliminate the fee to avoid protracted legal battles and potential trade friction with the U.S. government. The 15 percent spending requirement was a central pillar of Canada’s strategy to modernize the Broadcasting Act for the digital age, but the practical application of these fees faced stiff resistance from the tech and entertainment sectors in the United States.

The removal of this requirement alters the financial landscape for Canadian creators who relied on the prospect of these mandatory contributions to fund new series and films. By chopping the fee, the federal government is effectively opting out of a forced investment model in favor of a more deregulated approach to digital distribution.

This policy reversal highlights the difficulty Canada faces in balancing the protection of its cultural sovereignty with the economic realities of operating within a North American market dominated by U.S. platforms. While the Online Streaming Act intended to bridge the gap between linear television and internet-based viewing, the current plan suggests that the financial mandates were viewed as too aggressive by the platforms providing the infrastructure for content delivery.

The specific timeline for the implementation of these changes has not been fully detailed, but the government’s intent to eliminate the requirement is now a matter of public record. The move is expected to be welcomed by streaming executives who have argued that such levies are redundant or discriminatory toward foreign-owned entities.

For the Canadian entertainment industry, the loss of this guaranteed funding stream may force a reliance on direct licensing deals and private investment. The 15 percent threshold was designed to create a sustainable pool of capital for independent producers, and its removal leaves a void in the planned financial support system for domestic content creation.