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2024-06-04 23:48
Netflix (NASDAQ:NFLX), Walt Disney (NYSE:DIS) and other streaming services were in the spotlight on Tuesday after a Canadian government agency unveiled a new funding contribution targeted at streaming revenues.
The Canadian Radio-television and Telecommunications Commission, or CRTC, said it now requires online streaming services to contribute 5% of their Canadian revenues to support the Canadian broadcasting system.
These taxes will start in the 2024-2025 broadcast year and will provide an estimated $200M, the CRTC said in a statement.
“Today’s decision will help ensure that online streaming services make meaningful contributions to Canadian and Indigenous content,” CRTC Chairperson and Chief Executive Officer Vicky Eatrides said in the release. “The CRTC will continue to move quickly, listen carefully, and take action as we implement the new legislation.”
Netflix and Disney shares were down fractionally in late morning trading.
The decision is part of the Online Streaming Act, which became law last year. The Online Streaming Act amended the old Broadcasting Act and required the CRTX to "modernize the Canadian broadcasting framework and ensure that online streaming services make meaningful contributions to Canadian and Indigenous content."
Disney does not break down subscribers by country, but the media giant disclosed last month that it had 54M Disney+ subscribers in the U.S. and Canada as of the end of its fiscal second quarter.
Netflix said in April that it added 9.44M global streaming subscribers in the first-quarter, bringing the global paid membership total to 269.6M.
The streaming media giant also said that it will stop sharing subscriber figures in the first-quarter of 2025, except for "major subscriber milestones."