New Republican-sponsored legislation backed by major Hollywood studios is taking aim at Canada’s Online Streaming Act, a law that forces U.S. digital giants to finance Canadian media content production.
The proposed Protecting American Streaming and Innovation Act, a bill introduced on Thursday in the House of Representatives by Pennsylvania Republican Lloyd Smucker, aims “to counter Canada’s digital trade barriers targeting American streaming companies and content producers,” the Congressman said in a statement on Thursday.
Canada’s Online Streaming Act, which became law in 2023, obligates U.S. and other foreign digital platforms like Netflix, Disney+ and Spotify to subsidize local film, TV and music production, and has been applauded by Canadian content creators. Implementation of the Online Streaming Act has been held up by a Federal Court of Appeals challenge.
The Hollywood Reporter reached out for comment to Heritage Canada, the federal government department that regulates the domestic media sector, but has yet to hear back. The Canadian Media Producers Association, representing indie producers, said the Online Streaming Act brings foreign digital platforms on level terms with local broadcasters who have long helped underwrite the cost of homegrown content.
“At its core, the Online Streaming Act is about fairness, recognizing how content is consumed in the digital age and ensuring that online streaming platforms carry requirements similar to those of traditional broadcasters. By bringing these platforms in line with the rest of the industry, we can level the playing field and help secure a future where Canadian stories are supported, funded, and accessible across platforms available to, and paid for by, Canadians,” the CMPA said in a statement.
Privately, local media players express concerns the Republican-sponsored legislation could lead to higher tariffs imposed on Canadian exports to the U.S. market amid an ongoing cross-border trade war. And that would impact Canadian culture production and its reliance on securing U.S. distribution deals.
The new legislation coming out of Washington D.C. opposes efforts by Canada to use legislation to compel foreign digital platforms to hand over cash to help indie producers compete against Hollywood with their own local content.
Those initiatives underline Canada having to balance supporting regional production hubs for Hollywood producers embracing generous tax credits and currency savings, while also pushing for more local content creation with aid from larger foreign players active in the Canadian market.
For their part, U.S. digital giants have countered they already invest in indie Canadian production to sign up and retain local subscribers to their platforms, and shouldn’t be bound up in red tape when doing so. That’s led to top Canadian creatives and producers becoming partners with major American producers busily making original movies and TV series in Toronto and Vancouver for global streaming platforms.
Charles Rivkin, chairman and CEO of the Motion Picture Association, representing major studios and streamers, called for “fair market access” by his members to the Canadian market when supporting the Republican-sponsored legislation.
“Canada and its audiences are important to our member studios and the broader industry. However, Canada’s Online Streaming Act disadvantages American companies and undermines competitiveness by requiring streaming companies to subsidize and promote Canadian content over their own productions through discriminatory obligations that Canadian broadcasters do not face. We applaud Rep. Smucker’s commitment to addressing this unfair trade practice that’s impacting film and television production in America,” Rivkin said in a statement.
Outside groups supporting the U.S. Congress bill include the Computer and Communications Industry Association, Digital Media Association and the Information Technology and Innovation Foundation. Renewed opposition to Canada’s Online Streaming Act comes as key trade talks between the U.S., Canada and Mexico get underway.
In June 2025, Canada dropped a digital service tax on American tech giants to allow trade talks with the U.S. to resume amid a continuing tariffs war. That followed U.S. President Donald Trump calling a halt to negotiations with Canada over a digital service tax that he branded a “direct and blatant attack on our Country.”
March 20, 9 a.m. Story updated with statement from the Canadian Media Producers Association, representing indie producers.
