Netflix stock, Spotify face 15% content spending under Canada rules

Canada’s CRTC said streaming platforms such as Netflix will be required to spend 15% of domestic annual revenues on Canadian content under new rules implementing the Online Streaming Act. The increase — up from a 5% base contribution for online broadcasters — could raise content costs for global streamers and weigh on margins and free cash flow. Traditional broadcasters’ required contribution was cut to 25% (from 30–45%). The rules apply to broadcasters with annual Canadian broadcasting revenues above $25 million and aim to stabilize funding at more than $2 billion for Canadian and Indigenous content; the regulator also set discoverability expectations for platforms. Market reaction will hinge on how companies (and investors) view the incremental spending burden versus potential subscriber and revenue effects in Canada.