Music Canada's CEO Patrick Rogers has strongly criticized the new 5% streaming platform tax imposed by the CRTC on music streaming services in Canada, highlighting potential negative consequences for the Canadian music industry.

The tax applies to streaming services earning over $25 million in Canadian revenue and not affiliated with Canadian broadcasters. Key concerns include:

• The 5% tax rate is approximately 10 times higher than what radio broadcasters pay
• 40% of collected funds will subsidize traditional radio industry
• Potential increased costs for consumers
• Risk of reduced streaming service investments in Canada
• Possible exodus of streaming platforms from the Canadian market

Rogers expressed disappointment in the CRTC's approach, noting that instead of modernizing the system to help artists succeed in the global streaming market, the decision focuses on protecting legacy domestic institutions. He emphasized that paid subscription streaming services are crucial for reinvesting in Canadian and indigenous talent.

The decision comes as major platforms including Apple, Amazon, and Spotify have filed legal challenges against the tax. Rogers warns that if streaming services reduce their presence in Canada or leave entirely, it could result in a "cultural policy disaster."

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