Music Canada's CEO Patrick Rogers has strongly criticized the new 5% streaming platform tax implemented by Canada's broadcast regulator (CRTC), warning it could have severe consequences for the music industry.

Under the Online Streaming Act, streaming services earning over $25 million in Canadian revenue must pay 5% of their earnings, with 40% of these funds directed to support traditional radio broadcasters. This rate is approximately ten times higher than what radio broadcasters currently pay.

Rogers highlights several key concerns:

• The tax rate is "unprecedented" and "staggering" at 5% of Canadian revenues
• A large portion of streaming service contributions will subsidize traditional radio
• The decision fails to modernize the system or support artists in the global streaming market
• The framework ignores streaming's role in industry growth and artist career development

Potential consequences could include:

• Increased costs passed on to consumers
• Reduced investment from streaming services in Canada
• Possible exodus of streaming platforms from the Canadian market
• Threat to the licensed music economy that compensates artists

The criticism comes as major streaming platforms including Apple, Amazon, and Spotify have filed legal challenges against the tax. Rogers warns that if streaming services reduce their presence in Canada, the CRTC's decision could become a "cultural policy disaster" rather than an opportunity for industry advancement.

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