Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations that require foreign streaming platforms like Netflix to financially support Canadian content. Despite the government’s plan to replace the 15% tax on large streamers’ Canadian revenue with direct funding, these organizations argue that this funding model lacks the stability of a regulated contribution system overseen by the CRTC.
In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and unions representing Canadian actors, writers, and directors, concerns were raised about the government’s commitment to provide $600 million annually, emphasizing that discretionary funding is susceptible to budgetary and political fluctuations. The letter stressed the importance of a legally enforceable contribution framework to ensure consistent support for the Canadian production sector.
The Canadian Radio-television and Telecommunications Commission’s decision to increase contributions for major streaming services to 15% was met with a government announcement in June to transition to direct annual funding, leading to uncertainty within the industry. Despite the government’s intent to eliminate the financial contribution requirement for streamers, the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller underscores the need to maintain the 15% benchmark as a fair and proportionate standard for industry support.
While the government’s shift in streaming regulations was influenced by trade concerns raised by the U.S., the United States trade representative indicated that Canada’s actions may not be duly recognized for their impact.