Music Canada's CEO Patrick Rogers has strongly criticized the CRTC's decision to impose a 5% streaming platform tax on major music streaming services in Canada, warning of potential negative consequences for the country's music industry.

The new regulation, part of Canada's Online Streaming Act, requires streaming services earning over $25 million in Canadian revenue to contribute 5% of their earnings. This rate is approximately 10 times higher than what traditional radio broadcasters pay, with 40% of the collected funds being allocated to support the radio industry.

Rogers expressed disappointment that the CRTC failed to modernize the system and instead focused on protecting legacy institutions. He argues this approach doesn't align with the current streaming-driven music marketplace and could harm the growth of Canadian and indigenous artists in the global streaming environment.

Key concerns highlighted by Rogers include:

• Potential increased costs for consumers
• Possible reduction in streaming services' investments in Canada
• Risk of streaming platforms leaving the Canadian market
• Impact on artists' royalty payments through licensed streaming services

The decision is being legally challenged by major streaming platforms including Apple, Amazon, and Spotify. Rogers warns that if streaming services reduce their presence or exit the Canadian market, this policy could result in a "cultural policy disaster" rather than supporting the domestic music industry.

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