Music Canada CEO Patrick Rogers has warned that the CRTC's new 5% streaming platform tax could lead to a "cultural policy disaster" for Canada's music industry. The tax applies to music streaming services earning over $25 million in Canadian revenue.

The CRTC announced that 40% of the collected funds will support traditional radio broadcasters, a decision Rogers strongly criticizes. He points out that the 5% rate is approximately ten times higher than what radio broadcasters currently pay.

Key concerns raised by Rogers include:

• The tax rate is "unprecedented" and "staggering"
• Focus on protecting legacy institutions rather than supporting modern streaming success
• Potential increased costs for consumers
• Risk of reduced investment from streaming services
• Possible exodus of streaming platforms from the Canadian market

The tax affects major platforms like Spotify, Amazon Music, and Apple Music, which have already filed legal challenges against the regulation. Rogers emphasizes that licensed streaming services play a crucial role in artist success and industry growth, allowing music companies to reinvest in Canadian and indigenous talent.

The regulation stems from Canada's Online Streaming Act passed in 2023, which expanded CRTC's authority to include online content. Rogers expresses disappointment that the CRTC didn't use this opportunity to modernize the system and instead opted for what he calls "outdated thinking."

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