Media MythBusters: Does Regulation Really Drive Streaming Cost Increases?
Streaming used to be the cheaper alternative to cable. But as Canadians add more services to their monthly bills, and those services keep getting more expensive, affordability is becoming an increasingly important part of the debate over how streaming platforms should be regulated in Canada.
One argument comes up repeatedly: if streaming services such as Netflix, Disney+, and Amazon Prime are required to contribute to Canadian content, won’t they simply pass those costs on to subscribers?
It sounds straightforward. But the evidence tells a more complicated story.
The Affordability Argument
Consumer costs have become a central talking point in the debate over streamer regulation.
The federal government cited affordability when it directed the CRTC to reconsider minimum contribution requirements for streaming services as part of the implementation of the Online Streaming Act. Effectively, the government stated that the CRTC should reconsider the requirements in light of their potential impact on consumer costs. Prime Minister Mark Carney has also cited affordability when defending the government’s decision not to reinstate the Digital Services Tax.
The concern is understandable. Canadians are already dealing with higher costs across their household budgets, and nobody wants another increase on their monthly streaming bill.
But before blaming regulation for those increases, it is worth asking a basic question: Are streaming prices actually lower in places where these contribution requirements don’t exist?
What Happens in Countries That Regulate Streamers?
Evidence from Europe complicates the argument that contribution requirements automatically lead to higher subscription prices.
That doesn’t mean regulation can never affect a company’s costs, or that a streaming platform could never choose to pass a regulatory expense on to subscribers. But iIt does mean that the claim that contribution requirements necessarily translate into higher consumer prices deserves much closer scrutiny.
If regulation were the primary reason streaming subscriptions become more expensive, we would expect countries with heavier contribution requirements to have consistently higher prices.
The evidence does not show such a simple pattern.
Streaming Prices Are Rising Without These Requirements, Too
Consider what has been happening south of the border.
Since 2022, streaming subscription prices in the United States have risen at roughly three times the rate of inflation, despite the absence of comparable contribution requirements to those proposed in Canada.
The increases are substantial enough that the original promise of streaming as an inexpensive alternative to cable has become harder to recognize.
And Canada has hardly been immune from the trend.
Those increases occurred while major streaming companies were actively challenging the CRTC’s contribution requirements for Canadian content and news.
In other words, prices were already going up.
So, What Is Driving Your Streaming Bill?
Streaming prices depend on more than one factor.
Platforms make commercial decisions about subscription tiers, advertising, bundles, and content spending while factoring in profitability, competition, and how much consumers are willing to pay. Those decisions continue to operate within these parameters whether or not a government requires the companies involved to contribute to domestic cultural production.
That broader context matters.
When subscription prices rise, it can be tempting to point to a new regulation or contribution requirement as the explanation. But rising prices in markets without comparable rules, alongside evidence from jurisdictions with contribution requirements, suggest the relationship is not nearly that simple.
The question Canadians should be asking, therefore, isn’t simply whether regulation has a cost.
It is whether regulation is actually the main reason their streaming bills are increasing.
The available evidence suggests there is good reason to be skeptical of that claim.
Why This Matters for Canadian Content
Ultimately, this debate is about more than the price of a Netflix subscription.
For decades, Canadian broadcasters have operated within a system that requires them to support Canadian programming. As audiences increasingly move from traditional television to global streaming platforms, policymakers have been grappling with how to ensure that companies benefiting from Canadian audiences also contribute to the Canadian broadcasting ecosystem.
The Online Streaming Act modernized Canada’s broadcasting framework to bring large online streaming services into the system and give the CRTC responsibility for establishing how they contribute to Canadian content.
Major streamers have pushed back. Companies including Apple, Amazon, and Spotify have challenged CRTC-ordered contributions in court, while other foreign streaming companies have argued that Canada’s requirements are unfair or too burdensome.
That debate raises legitimate questions about affordability, competitiveness, investment, and how contribution requirements should be designed. Those questions deserve serious consideration.
But Canadians should also have accurate information about what is and is not driving the prices they pay.
The Bottom Line
MYTH: Requiring streaming platforms to contribute to Canadian content is what makes your streaming subscription more expensive.
REALITY: Streaming prices are rising rapidly across markets, including those without comparable contribution requirements. Research examining European jurisdictions has also found little to no relationship between contribution requirements and streaming subscription prices.
That doesn’t mean regulation has no cost or could never influence pricing. It means the evidence does not support treating regulation as the sole or even the primary explanation for rising streaming bills.
So, the next time you hear that supporting Canadian content will inevitably make your Netflix bill more expensive, it’s worth looking at what is happening elsewhere.
Streaming prices are going up. The evidence suggests the reason is more complicated than regulation alone.