Spotify, Apple Music, Amazon Music, and other major music streaming services are bracing for the fallout from Canada‘s decision to triple the levy on online streaming platforms operating in the country – from 5% to 15% of their Canadian revenues.
The Canadian Radio-television and Telecommunications Commission (CRTC) announced the increase on Thursday (May 21), as part of its implementation of the Online Streaming Act – legislation enacted in 2023 that expanded the regulator’s authority to include online content.
The new 15% rate formally applies to audiovisual streaming services – such as Netflix, Disney+, and Amazon Prime Video – with annual Canadian broadcasting revenues above $25 million.
Spotify has indicated to iPhone in Canada that the 15% rate does not currently apply to its service, which it says is classified as an audio streaming platform rather than an audiovisual one.
Nevertheless, the company recently raised its Canadian subscription prices – with the Individual plan climbing to CAD $13.99 per month from CAD $12.69, effective from July 2026, and other Premium tiers also increasing.
The question of where audio-only music services fit within Canada’s expanded framework remains unresolved – with the CRTC‘s audio policy process still ongoing.
Spotify now hosts music videos, video podcasts, and other audiovisual content on its platform – raising the question of at what point a music streaming service begins to function as a video platform under the regulator’s definitions.
The music DSPs are already battling the CRTC‘s original 5% levy – first imposed in 2024 – which required non-Canadian streaming services to contribute 5% of their domestic revenues to funds supporting Canadian content creators.
Apple, Amazon, and Spotify filed legal challenges against that requirement, and a Canadian federal court paused enforcement of the payments pending the outcome of an appeal.
Now, with the CRTC tripling the rate for audiovisual platforms, music streaming executives will be watching closely for any indication that a similar increase could follow for audio services.
Under the new framework, contribution requirements for traditional Canadian broadcasters – which currently pay between 30% and 45% of their revenues – will be lowered to 25%.
The CRTC said the combined contributions from all broadcasters are expected to stabilize funding at more than $2 billion annually in support of Canadian and Indigenous content, including French-language programming and news.
“We are taking action to ensure stable funding for Canadian and Indigenous content, and to help make it more discoverable.”
Vicky Eatrides, CRTC
“Today’s decisions are about building a stronger broadcasting system,” said Vicky Eatrides, Chairperson and Chief Executive Officer of the CRTC, in a statement.
“We are taking action to ensure stable funding for Canadian and Indigenous content, and to help make it more discoverable.”
“Because we’re an arm’s length quasi-judicial tribunal, we are not in touch with the government about the status of trade negotiations.”
Scott Shortliffe, CRTC
Streamers with Canadian revenues of more than $100 million annually must direct 30% of their spending toward partnerships with Canadian broadcasters and independent producers.
Scott Shortliffe, the CRTC‘s vice-president of broadcasting, told reporters on Thursday that the regulator is not involved in trade negotiations with the United States.
“Because we’re an arm’s length quasi-judicial tribunal, we are not in touch with the government about the status of trade negotiations,” he said.
“We’re applying Canadian law in Canada.”
The CRTC‘s decision arrives against a backdrop of escalating trade friction between Canada and the United States.
The US government has identified the Online Streaming Act as a trade irritant ahead of the 2026 review of the Canada-United States-Mexico Agreement (CUSMA).
US Representative Lloyd Smucker (R-PA) has introduced a bill to launch a Section 301 trade investigation into the Online Streaming Act.
“Canada is doubling down on discriminatory regulations targeting American streaming services and digital creators.”
Lloyd Smucker, US Representative
“Canada is doubling down on discriminatory regulations targeting American streaming services and digital creators,” Smucker wrote on X ahead of the CRTC‘s announcement.
Legal scholar Michael Geist wrote that the combined 15% rate places Canada among the most expensive operating jurisdictions in the world for streaming services – and predicted the decision would lead to years of trade and legal battles.
Meanwhile, Spotify has raised its Canadian subscription prices multiple times since the Online Streaming Act came into force.
When the original 5% levy was announced in 2024, DiMA called it a “discriminatory tax” – with Spotify at the time describing the requirement as “a devastating blow to artists” and “a protectionist subsidy for radio.”
The Online Streaming Act was passed in 2023, updating Canada‘s Broadcasting Act for the first time in a generation.Music Business Worldwide
