Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney not to eliminate regulations that require foreign streaming companies such as Netflix to financially support Canadian content. The government had proposed replacing the 15% tax on large streamers’ Canadian revenue with government funding, but the organizations argue that this is not an adequate substitute.
In a letter signed by 50 organizations, they express concerns that the government’s pledge of $600 million per year, while appreciated, is not a reliable alternative to legally enforceable contribution obligations. They argue that discretionary funding is susceptible to budget and political influences, unlike a CRTC-regulated contribution framework that provides stability.
Signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian actors, writers, and directors, as well as several film festivals. Following the Canadian Radio-television and Telecommunications Commission (CRTC) raising contributions for large streaming services to 15%, the government announced plans in June to replace this with direct annual funding for the industry.
The letter, also directed to Culture Minister Marc Miller, highlights the uncertainty introduced into the production sector by the government’s June announcement to eliminate the financial contribution requirement for streamers. It stresses the importance of maintaining the 15% contribution threshold as a fair and proportionate benchmark for the regulatory framework.
Although the Canadian government shifted its stance on streaming rules due to pressure from the U.S., which flagged the legislation as a trade issue, the United States trade representative has indicated that Canada may not receive recognition for this change.
