The Globe and Mail reports in its Saturday edition that large foreign video and music streaming giants are launching a campaign against Ottawa's new mandatory levy on their Canadian operations, trying to mobilize the public in this country to oppose the charge. The Globe's Steven Chase writes that the Washington-based Digital Media Association, which represents tech heavyweights such as Apple, Spotify, Amazon and YouTube, is switching on a website Monday to help amplify its criticism that this federal charge would increase costs for Canadian consumers and make music streaming services more expensive. The levy stems from the federal government's Online Streaming Act, which received royal assent last year. In June, the CRTC said that as a result of the new law it would require on-line streaming services with $25-million or more in annual revenue, and that are not affiliated with a Canadian broadcaster, to contribute 5 per cent of those revenues to help support Canadian broadcasting. Streaming services are required to make these mandatory contributions at the end of the 2024-25 broadcasting year, which began Sept. 1. Ottawa has estimated it will reap $200-million annually. The money will go to local news on radio and TV.
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