Music Canada's CEO Patrick Rogers has voiced strong opposition to Canada's newly implemented 5% streaming platform tax, warning of potential negative impacts on the country's music industry.

The tax, part of Canada's Online Streaming Act, requires music streaming services earning over $25 million in Canadian revenue to contribute 5% of their earnings. This regulation affects major platforms like Apple, Amazon, and Spotify, who have already filed legal challenges against it.

Key concerns raised by Rogers include:

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

Rogers criticizes the CRTC's approach, noting that instead of modernizing the system to support artists in the global streaming market, the decision focuses on protecting legacy institutions. He argues this doesn't address what artists need to succeed in today's competitive, streaming-driven marketplace.

The CRTC's decision affects streaming services not affiliated with Canadian broadcasters, with collected funds intended to support Canadian music creators and broadcasters. Rogers warns this could become a "cultural policy disaster" if streaming platforms reduce their presence in Canada or pass costs to consumers, potentially undermining the licensed music economy that currently ensures artist compensation.

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