News & Resources

Executive Summary 

Canada’s media ecosystem is facing a structural crisis. Advertising revenues have shifted toward global digital platforms, news organizations are struggling to sustain original journalism, and Canadians are increasingly required to pay for multiple services to access news, sports and cultural programming. 

A strong Canadian media ecosystem is essential to Canada’s democracy, cultural sovereignty and economic resilience. Canadians need access to trusted journalism and Canadian stories, while Canadian media organizations need a policy environment that allows them to compete and remain sustainable. 

Recommendations at a Glance 

Friends of Canadian Media recommends that Budget 2026 

1. Provide CBC/Radio-Canada with an additional $150 million in permanent annual base funding through a predictable multi-year framework. 

2. Protect affordable access to Canadian programming. Instruct the CRTC via policy direction to explore introducing a modern anti-siphoning list covering major live sporting and cultural events of national importance, ensuring Canadians can access them through free-to-air Canadian broadcasters. 

3. Strengthen Canadian journalism and keep advertising dollars in Canada. Maintain the enhanced 35% Canadian Journalism Labour Tax Credit and modernize advertising tax rules to close the digital loophole and ensure Canadian businesses have an incentive to purchase advertising from qualifying Canadian media, including Canadian-owned and Canadian-operated digital media 

4. Make trusted Canadian journalism more affordable by reinstating and expanding the news subscription tax credit to cover qualifying print and digital subscriptions, helping Canadians access trusted journalism while supporting sustainable subscription revenues for Canadian news organizations. 

Together, these measures would strengthen Canada’s democratic and cultural infrastructure, support Canadian jobs and journalism, keep more Canadian advertising dollars within Canada’s economy, and help ensure Canadians can access trusted news and shared national experiences without facing an ever-increasing cost burden. 

1. Provide Stable, Multi-Year Funding for CBC/Radio-Canada 

Friends of Canadian Media recommends that the Government of Canada, in fulfillment of its election promises, provide $150 million in additional annual base funding to CBC/Radio-Canada on a permanent basis, delivered through a predictable multi-year funding framework. 

CBC/Radio-Canada is a core piece of Canada’s public-interest infrastructure. It provides national, regional and local journalism, serves Canadians in both official languages, supports Indigenous and diverse communities, and produces Canadian programming that commercial markets may not reliably provide. 

The media environment in which the public broadcaster operates has changed significantly. Advertising revenues have migrated toward global digital platforms, audiences are increasingly fragmented, and the cost of producing high-quality journalism and original Canadian programming continues to rise. 

A predictable, multi-year funding model would allow CBC/Radio-Canada to make longer-term investments in journalism, regional services, digital transformation and Canadian programming rather than operating under year-to-year funding uncertainty. 

This investment should be viewed not simply as support for a broadcaster, but as an investment in Canada’s democratic resilience, cultural sovereignty and ability to tell Canadian stories to Canadians. 

2. Keep Major Canadian Sporting and Cultural Events Accessible and Affordable 

Canadians should be able to participate in major national sporting and cultural experiences without having to purchase an ever-growing number of foreign streaming subscriptions. 

The fragmentation of media distribution has created a new affordability challenge. Major sporting and cultural events are increasingly distributed across different commercial and subscription platforms, requiring households to pay for multiple services to access programming that was once broadly available. 

Friends of Canadian Media recommends that the Government of Canada direct the CRTC via policy direction to introduce a modern anti-siphoning list covering major live sporting and cultural events of national importance, with the goal of ensuring that Canadians can access these events through free-to-air Canadian broadcasters. 

An updated framework should reflect today’s combination of broadcast, online and streaming services while protecting affordable public access to events that have significant national importance. 

A modern anti-siphoning regime would advance both affordability and cultural sovereignty, ensuring that major events remain accessible to Canadians across income levels and regions. 

3. Strengthen the Economic Sustainability of Canadian Journalism 

Canada needs a sustainable environment for the production of original, independent journalism. This requires both support for newsroom employment and a tax system that does not inadvertently encourage Canadian advertising dollars to leave the Canadian media ecosystem. 

Maintain the Canadian Journalism Labour Tax Credit 

The Canadian Journalism Labour Tax Credit is an important tool supporting the production of original Canadian journalism. The current enhanced rate of 35 per cent is scheduled to revert to 25 per cent after 2026. 

Budget 2026 should provide long-term certainty by maintaining the enhanced 35 per cent rate and continuing to modernize the credit to reflect the changing economics of Canadian journalism, including appropriately qualified audio and audiovisual news organizations. 

The credit should remain focused on supporting the journalists and newsroom employees responsible for producing original journalism while protecting the independence and integrity of Canadian news organizations. 

Keep Canadian Advertising Dollars in Canada 

Canada’s advertising market has changed dramatically as Canadian businesses increasingly use global digital platforms to reach Canadian audiences. Canada’s tax rules should reflect this reality. 

Friends of Canadian Media recommends that the Government modernize advertising tax rules to ensure that Canadian businesses have an incentive to invest in Canadian media, including Canadian-owned and Canadian-operated digital media, while closing the digital loophole that can give foreign digital platforms more favourable tax treatment. 

The objective should be a Canada-focused, platform-neutral tax framework that does not inadvertently subsidize the migration of Canadian advertising dollars away from Canadian media to entities with no investment in our country’s sovereignty. 

Budget 2026 should: 

• Close the digital loophole affecting advertising purchased through foreign digital platforms; 

• Review the deductibility rules for advertising across traditional and digital media; 

• Ensure that advertising purchased from qualifying Canadian media receives appropriate tax treatment; and 

• Encourage Canadian businesses to keep more advertising investment within Canada’s domestic media ecosystem. 

Keeping more Canadian advertising dollars in Canada would help support Canadian journalism, Canadian jobs and the businesses that produce content for Canadian audiences. 

4. Make Trusted Canadian Journalism More Affordable 

Canadians should not have to choose between accessing reliable journalism and managing the rising cost of living. 

At a time when misinformation and disinformation can spread rapidly online, access to trusted, independent journalism is increasingly important. Professional journalists provide original reporting, investigate matters of public interest and help Canadians make informed decisions. 

The Government previously recognized the value of encouraging Canadians to support journalism through the 15 per cent non-refundable tax credit for eligible digital news subscriptions. The measure allowed individuals to claim up to $500 in eligible subscription expenses, for a maximum annual federal credit of $75, but it is no longer available for the 2025 tax year and subsequent years. 

Friends of Canadian Media recommends that Budget 2026 reinstate and modernize this tax credit, expanding it to cover qualifying print and digital subscriptions to Canadian journalism organizations. 

A renewed subscription tax credit would: 

• Make trusted Canadian journalism more affordable for households; 

• Support news organizations by encouraging sustainable subscription revenues; 

• Give Canadians a direct incentive to support the journalism they value; and 

• Strengthen access to original reporting and reliable information in an increasingly fragmented information environment. 

This measure should be designed to complement—not replace—other policies supporting the sustainability of Canadian journalism. 

A subscription credit is also a targeted way to address misinformation. It does not attempt to regulate what Canadians read or determine which sources are credible. Instead, it strengthens the economic foundation of professional journalism, giving Canadians greater access to original reporting, fact-checking and investigative journalism. 

Conclusion 

Budget 2026 should take a coordinated approach that strengthens Canada’s media ecosystem while addressing the affordability pressures facing Canadians. 

Friends of Canadian Media recommends that the Government: 

1. Provide $150 million in additional permanent annual base funding to CBC/Radio-Canada through a predictable multi-year framework; 

2. Encourage the introduction of a modern anti-siphoning list to ensure major national sporting and cultural events remain accessible through free-to-air Canadian broadcasters; 

3. Strengthen Canadian journalism by maintaining the enhanced Canadian Journalism Labour Tax Credit and modernizing advertising tax rules to keep more Canadian advertising dollars in Canada; and 

4. Reinstate and expand the news subscription tax credit to make qualifying print and digital Canadian journalism more affordable. 

These measures would work together to strengthen Canada’s democratic and cultural infrastructure, support Canadian jobs and journalism, and ensure that Canadians can access trusted news and shared national experiences without facing an ever-increasing cost burden.