As the music industry gears up for 2026, key concerns are heating up, from streaming regulations to label layoffs and the AI threat.
As the music industry shakes off the holiday dust, several pressing issues remain in play as we step into 2026. The ongoing discussions surrounding Canada’s Online Streaming Act, along with the impact of recent layoffs and the growing influence of artificial intelligence, are set to shape the industry’s future in significant ways.
In 2023, the Online Streaming Act, also known as Bill C-11, marked a legislative shift, modernizing laws that hadn’t been updated since 1991. This Act requires foreign streaming platforms generating over $25 million annually to contribute 5% of their Canadian revenues to support Canadian content. The Canadian Radio-television and Telecommunications Commission (CRTC) anticipates this move will generate about $200 million in funding every year, benefiting Canadian film, television, music, and local news, as well as promoting Indigenous and diverse voices.
However, these measures haven’t come without pushback. Major streaming platforms such as Spotify and Netflix are contesting these regulations in court, arguing they already contribute to Canadian content. Music Canada, representing major labels, has opposed the Act, citing concerns over its implications for the industry, particularly as legal challenges mount.
The political ramifications are considerable. U.S. officials are pressuring the Canadian government to reconsider the Act, warning it may harm cultural sectors like radio and television. Canadian Association of Broadcasters’ president Kevin Desjardins has voiced strong concerns, stating that caving to U.S. demands could be devastating for Canada’s cultural landscape.
As discussions heat up, the Online Streaming Act is rumored to be a focal point in the upcoming United States–Mexico–Canada Agreement (USMCA) negotiations. Prime Minister Mark Carney’s previous decisions, such as scrapping Canada’s Digital Services Tax under American pressure, have raised alarms about his willingness to backtrack on significant cultural policies.
In addition to these political debates, the Indigenous Music Office has launched initiatives to boost the international visibility of Indigenous music, recognizing the potential for growth in this sector. Their recent report emphasizes the necessity for tailored support for Indigenous artists looking to break into international markets.
Meanwhile, Quebec’s proposed Bill 109 aims to require streaming services to prioritize French-language content, igniting a debate about cultural sovereignty. While many cultural organizations support the bill, dissenting voices argue it could limit consumer choice and fails to capture the province’s diverse linguistic landscape.
Amid these discussions, industry layoffs have cast a shadow over the Canadian music scene. Warner Music Canada recently let go of a significant number of employees as part of a larger restructuring at Warner Music Group. With similar cuts at other major labels occurring, concerns about the future of domestic talent and artist development have been increasingly pronounced.
Artificial intelligence is also reshaping the industry, prompting rapid responses from performing rights organizations. Policies are now in place to accept works partially generated by AI, reflecting a shift in the creative landscape. The emergence of AI in music has stirred controversy, including disputes over credited authorship and authenticity.
As these challenges unfold, the future looks uncertain for the Canadian music industry in 2026. Lawmakers, industry organizations, and artists will need to navigate this complex terrain while advocating for policies that support their work and preserve the cultural integrity of Canada.
