The Canadian Radio-television and Telecommunications Commission (CRTC) this week announced changes in spending requirements for traditional broadcasters and streaming operators, notes National Bank analyst Adam Shine.
Private Canadian broadcasters will be required to contribute 25% of their annual Canadian broadcasting revenues to Canadian programming expenditures (CPE) versus current levels of 30%-45%.
The CPE requirement for online streaming services is being tripled to 15%. "We'll see how this plays out given that the prior 5% rate for online streamers with revenues above $25M in Canada was announced on June 4, 2024 and was to become effective for the f2024-f2025 broadcast year," Shine writes.
No date has been set for implementation of the new rules.
Lawsuits were filed in late 2024 by several U.S. streamers with the Federal Court of Appeal and the court paused the payment obligation which was due Aug. 31, 2025. A decision is still pending. The streamers could try to appeal a verdict against them to the Supreme Court, Shine adds.
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