Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming platforms like Netflix towards Canadian content. The government’s plan to replace the existing 15% tax on large streamers’ Canadian revenue with government funding is being contested by these groups, asserting that direct funding is not an adequate substitute.
In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and various unions representing Canadian actors, writers, and directors, concerns were raised about the government’s pledge of $600 million annually. They highlighted that this discretionary funding, unlike a CRTC-regulated contribution system, is susceptible to changes through the federal budget, making it less reliable and enforceable.
Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contributions for major streaming services, the government announced in June a shift towards providing direct annual funding to the industry, thereby eliminating the financial contribution requirement for streamers. This move has injected uncertainty into the production sector, according to the signatories of the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The letter emphasizes the importance of maintaining the 15% contribution threshold as a fair and reasonable benchmark within the regulatory framework. Despite the government’s reversal on the streaming rules due to pressure from the U.S., the United States trade representative has indicated that Canada’s actions may not be fully acknowledged as a positive development.