Dozens of Canadian cultural 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 proposal to replace the 15 percent tax on major streamers’ Canadian revenue with direct government funding is being contested by these groups.
In a joint letter signed by 50 organizations, they express concerns that the promised annual funding, as opposed to a CRTC-regulated contribution system, can be altered through the federal budget, making it less reliable. The letter emphasizes that while the government’s commitment of $600 million annually is appreciated, it does not serve as a substitute for a consistent and legally enforceable contribution obligation.
Signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian actors, writers, and directors, as well as multiple film festivals. The dispute arose after the Canadian Radio-television and Telecommunications Commission (CRTC) raised the contribution rate for large streaming services to 15 percent, prompting the government to announce a shift in policy direction in June and opt for direct annual funding instead.
Despite the government’s assurance to eliminate the financial contribution requirement for streamers, the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller voices concerns over the uncertainty introduced into the production sector by the government’s decision in June.
The letter advocates for maintaining the 15 percent contribution benchmark as a fair and appropriate standard for the regulatory framework, cautioning against diminishing it through the replacement of the current contribution mechanism. The alteration in streaming rules by Ottawa, following pressure from the U.S. which identified the legislation as a trade concern, has not been well received by the United States trade representative who expressed skepticism about Canada receiving recognition for the change.