By Paul Vieira

OTTAWA--Canada's broadcast regulator said Thursday it intends to increase the level of financial contributions that big U.S. online streamers must contribute to local programming--a move that threatens to further strain trade talks between the two nations.

In the meantime, the Canadian Radio-television and Telecommunications Commission has agreed to reduce the financial obligations from traditional, over-the-air domestic broadcasters toward the production of local programming.

The decisions mark the latest step in the effort by Canadian authorities to implement a law introduced by former Prime Minister Justin Trudeau that would compel foreign streaming services and digital platforms to make a bigger contribution to Canadian programming, and prominently showcase Canadian programming to users in the country.

The CRTC ordered streaming companies in 2024 to contribute 5% of their revenue from Canada to local programming, including news. The CRTC said it is increasing that level to 15% of streaming revenue. Meanwhile, big, domestic, over-the-air broadcasters will contribute 25% of their sales to Canadian programming--a reduction from their current obligation of up to 45% of revenue.

The regulator said this was a necessary recalibration.

"Contributions by private elements of the broadcasting system must be meaningful but also equitable," the CRTC said in a written decision. The revised levels, "recognize the variety of business models and broadcast and distribution models, [and] appropriately balances the need to stabilize overall contributions in the broadcasting system."

U.S. Trade Representative Jamieson Greer has previously identified Canada's online streaming regulations as "a law that discriminates against U.S. tech and media firms, as well as a number of other measures that restrict digital services trade." The online streaming rules could prove to be a significant obstacle toward the U.S. and Canada reaching an agreement on extending the current U.S.-Mexico-Canada trade treaty.

Streaming companies, working alongside the Motion Picture Association -- Canada, are trying to overturn the 5% payment in court, but no final judgment has been issued. The regulator said it is confident in its case and is proceeding ahead with the higher level.


Write to Paul Vieira at paul.vieira@wsj.com,


(END) Dow Jones Newswires

05-21-26 1625ET