Don’t be fooled by these scare tactics aimed at Canadians by streaming companies. This is bullsh*t. [Wait! There’s an important UPDATE that you won’t believe.]

Fact: Foreign streamers are sucking billions of dollars in profit out of Canada.

Fact: Foreign streamers put precious little investment back into Canadian culture.

Fact: Traditional domestic broadcasters (radio and TV) continue to drop billions into developing and sustaining Canadian culture, even as foreign streamers drain away advertising dollars. Canadian broadcasters do this because (a) it’s the law, and (b) it’s the right thing to do. To ensure a steady stream of new music and to maintain the health of Canadian culture in an increasingly competitive world, they need to invest in the system. This funding infrastructure has made Canada one of the greatest exporters of music on the planet.

Fact: Streaming companies have been raising their subscription rates and throwing in commercials into what were once ad-free streams. That was the promise of a subscription: no commercials. Promise broken.

Fact: The Canadian government is trying to even the playing field by levying a tax–Bill C-11–on all streamers with Canadian revenues greater than $25 million. That levy/tax would be 5% of revenues above $25 million. That’s couch change for companies like Spotify, Netflix, and all the rest of them.

Fact: Other countries around the planet have similar levies/taxes in place. A lot of them, although it should be pointed out that some levies are less than 5%. (Fine! So negotiate!)

Now that we’re clear on the facts, let’s look at what DiMA, a lobby group for digital streaming platforms is trying to do.

There’s a new website called Scrap the Streaming Tax that’s trying to scare Canadians into believing that this levy/tax–which, of course, will be passed on to consumers. “There’s a new streaming tax targeting you. Life is already unaffordable!”

It continues: “The government has put a tax on your streaming services. Just another decision that makes life more unaffordable for you. [Y]ou may end up paying more for your favourite streaming services and have less control over what you can watch or listen to”.

Yep. Money is tight for everyone right now. That’s a fact, too. So this levy/tax is unfair to consumers because it’ll make like so much more unaffordable, huh?

This is rich coming from a group of companies that has been raising subscription rates over the past couple of years. And the streamers (especially the music ones) are under CONSTANT pressure from the record labels to raise their subscription fees, something that they’ll have to do in the near future. How’s that for making life for Canadians more unaffordable?

UPDATE: Spotify just announced that subscription prices are going up by 24% in Canada. That kinda f*cks with their “unaffordable for Canadians” argument, don’t it?

The Scrap the Tax comes with a pre-written letter that they want you to send to your MP. I quote:

“Bill C-11 further increases the cost of living for Canadians, particularly at a time when inflation and economic pressures are already making daily life challenging. Streaming services have made significant contributions to promoting Canadian artists and showcasing our culture to the world, all without placing unnecessary additional costs on consumers.

“It’s time to scrap this tax and focus on measures that genuinely support Canadian creators without placing additional financial strain on consumers. I urge you to take immediate action to repeal the streaming tax and advocate for a more balanced approach that benefits both consumers and creators.”

Utter BS.

Let’s take a look at what passing along a 5% levy might do to your wallet.

The current price of a Spotify premium subscription is $12.69 a month. For that low, low price, you have unhindered and unlimited access to somewhere around 120 million songs. The totality of humanity’s music is available to a subscriber for less than the price of a CD and less than a third of the price of a vinyl record. There has never, ever been a better deal in the history of art and commerce.

Let’s say that Spotify moves to pass on that 5% levy to consumers. That amounts to SIXTY CENTS on a $12.69/month subscription. That’s $7.20 a year, less than one big fancy coffee at Starbucks. Can you even get a Big Mac for $7.20 now?

Jeezus, if you’re going to be scared by a rise of sixty cents a month to listen to be able to listen to all the music in the world, you (a) have got bigger financial problems; and (b) aren’t much of a music fan, given that this money will go to Canadian musicians and organizations. And you care about Canadian musicians, right? RIGHT?

This campaign is utter garbage. It’s a poorly thought-out, horribly executed attempt to whitewash what the streaming companies want to do which is raise prices for their services and not have to properly pay for the Canadian music they use to generate billions in profits. Do not fall for it.