DIMA Statement on Streaming Services’ Legal Challenge Against CRTC
CRTC’s decision to impose levies on foreign streamers is excessive and may result in unintended consequences, say streamers
FOR IMMEDIATE RELEASE
CONTACT: media@dima.org
July 4, 2024
Ottawa, Ontario –
Graham Davies, President and CEO of the Digital Media Association (DIMA) today released the statement below, following confirmation that three members – Amazon, Apple and Spotify –filed legal challenges with respect to the CRTC’s decision that imposes a mandatory financial contribution as part of the ongoing implementation of the Online Streaming Act. Decisions regarding this legal challenge will be made by the Federal Court of Appeal.
“Under Broadcasting Regulatory Policy CRTC 2024-121, the Commission is imposing a 5% levy on non-Canadian online streaming services. The CRTC estimates this will generate $200 million in revenue annually. The contributions must be made to various government-mandated funds, such as local news production for the benefit of commercial radio stations, that have been preselected by the CRTC.”
“The approach taken is backward-looking and bad public policy from the current Government of Canada, and fails to acknowledge streaming’s existing contributions to music production.”
“Imposing a 5% levy on streaming services is unsustainable, bad for consumers, and fails to follow the policy directive by Canadian Heritage and the Online Streaming Act.”
“This levy risks raising costs for Canadians and may also violate trade obligations, exposing Canada to economic repercussions.”
“DIMA urges the CRTC as well as the Government of Canada to rethink its implementation of the Online Streaming Act given the unintended consequences it is creating.”
About DIMA
DIMA is the voice of music streaming advocating for the digital music innovations that have created unparalleled consumer choice and revolutionized the way music fans and artists connect. Representing the world’s leading music streaming companies and streaming innovators DIMA’s mission is to promote and protect the ability of music fans to engage with creative content whenever and wherever they want and for artists to more easily reach old fans and make new ones. www.DIMA.org
