Music Industry

This was inevitable: Spotify, Apple Music, and Amazon have taken legal action over Canada’s streaming tax

The story thus far: The Canadian government, fed up with foreign companies syphoning off hard currency from Canadian streaming users (audio and video) without putting sufficient investments back into the country’s cultural infrastructure, wants to impose a 5% tax on streamers making over $25 million in the country. This includes Spotify, Apple Music, Amazon, Netflix, Disney, NBC Universal, and Warner Brothers Discover. The tax is set to take effect this fall.

Money will be directed toward FACTOR and Musicaction (the organizations that helps emerging musicians get established with funding), the Canadian Media Fund, and the Independent News Fund. These taxes/levies/fees are little different from what Canadian radio and TV stations have had to pay into the system for decades.

Even though that levy is a pittance against their overall earnings, the streamers are pissed off. They have all filed individual claims/challenges with Canada’s Federal Court of Appeal. They want a judicial review of the new rules, saying that the CRTC doesn’t have the authority to implement such regulations.

Graham Davies, President and CEO of the Digital Media Association, says this “is backward-looking and bad public policy from the current Government of Canada, and fails to acknowledge streaming’s existing contributions to music production.” They also mutter something about this being against the USMCA (what used to be called NAFTA).

Canada is not the only country to float such demands for contribution to the local culture. Poland demands 1.5%. Switzerland is about to impose a 4% levy. Spain is a 5%. France demands 25%. There’s a tax in Italy that’s also at 25%. These regulations aren’t going away, so why would Canada be any different?

Buncha whiners, I say. Wanna do business in someone else’s country? Play by the rules.

More coverage here and here.

Alan Cross

is an internationally known broadcaster, interviewer, writer, consultant, blogger and speaker. In his 40+ years in the music business, Alan has interviewed the biggest names in rock, from David Bowie and U2 to Pearl Jam and the Foo Fighters. He’s also known as a musicologist and documentarian through programs like The Ongoing History of New Music.

Alan Cross has 39645 posts and counting. See all posts by Alan Cross

3 thoughts on “This was inevitable: Spotify, Apple Music, and Amazon have taken legal action over Canada’s streaming tax

  • Greed.

    That is all that it is, greed.

    Use the artists to get rich on the artists hard work, while the artist struggles. I hope that the CRTC wins this one.

    Reply
  • Greed.

    100% greed.

    While the artists struggle, the big corps get richer off of their backs.

    I hope that the CRTC wins this one for the artists.

    Reply
  • I hope the CRTC stands firm on this one. I agree we need Can-Con in Canada and this is 100% the right way to do it.

    Reply

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