In response to the implementation of the Online Streaming Act, or Bill C-11, the Digital Media Association (DIMA) has launched “Scrap the Streaming Tax,” a national campaign aimed at keeping streaming affordable for all Canadians. According to the Bill, foreign-owned streamers with over $25 million in Canadian revenues will be required to contribute 5% of their annual Canadian revenue to parties determined by the CRTC. The worry is that streaming services will pass this cost on to consumers.

If this sounds familiar it’s because the Canadian Media Directors’ Council (CMDC) has highlighted the same problem. For its part, the Digital Media Association is hoping for the repeal of Bill C-11, and raising awareness through social media with the hashtag #ScrapTheStreamingTax, ads and events.

DIMA also encourages all Canadians to contact their elected officials to voice their concerns by visiting www.scrapthestreamingtax.ca.

To illustrate why the tax is unnecessary, DIMA highlights its members’ track record of investing in the promotion and support of the Canadian music industry, with 70% of all revenues from Canadian consumers paid to music artists, creators and their representatives. Also, according to the organization, DIMA’s members invest in local teams, promotion and programs that bring forward Canadian talent on a global scale.

“All of this has been achieved without the need for a tax, regulation and any other additional burdens on DIMA’s members. Our members have helped drive the Canadian music industry, and Canadian creators, on a path to success. The government’s actions jeopardize that success and those investments,” says a DIMA spokesperson.

“The streaming tax needs to be scrapped because Canadians are already feeling the pinch from rising inflation and economic pressures. The addition of a streaming tax is an unnecessary burden,” said Graham Davies, president and CEO of DIMA. “This tax is not only a financial strain on consumers, but it also undermines the role that streaming services have played in promoting Canadian culture and artists and enabling the music sector’s investment in talent.”

DIMA is working with NorthStar Public Affairs out of Ottawa on this campaign.