Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations that mandate foreign streaming platforms like Netflix to financially support Canadian content. The government’s plan to substitute the 15 per cent tax on large streamers’ Canadian revenue with direct government funding is being contested by these organizations, arguing that it lacks the stability of a CRTC-regulated contribution system.
In a joint letter signed by 50 entities, including the Canadian Media Producers Association and unions representing Canadian actors, writers, directors, and film festivals, concerns were raised regarding the government’s pledge of $600 million annually. The letter emphasized that while the funding is appreciated, it does not offer the same level of consistency and legal enforceability as a regulated contribution framework, as discretionary funding is subject to budgetary fluctuations and external political pressures.
Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contributions for major streaming services to 15 per cent, the government announced in June its intention to shift to direct annual funding for the industry, effectively eliminating the financial contribution requirement for streamers. This move has caused uncertainty within the production sector, as stated in the letter, which was also addressed to Culture Minister Marc Miller.
Despite the shift in policy direction attributed to pressure from the U.S., which viewed the legislation as a trade issue, the letter stresses the importance of maintaining the 15 per cent contribution threshold as a fair and appropriate benchmark within the regulatory framework. The United States trade representative has indicated that Canada may not receive full recognition for this change in approach.
