Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney not to eliminate regulations that mandate 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 groups argue that this alternative is inadequate.
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 annual funding, which can be altered through the federal budget, unlike a regulated contribution regime overseen by the CRTC.
The letter emphasizes that while the government’s pledge of $600 million per year is appreciated, it does not compare to the stability and enforceability of a regulated contribution system. Discretionary funding is susceptible to budget constraints and external political influences, unlike a structured contribution framework that offers more certainty.
Following the CRTC’s decision to raise contributions for major streaming services to 15%, the government announced plans in June to phase out the financial contribution requirement and instead provide direct annual funding to the industry. This shift has caused significant uncertainty in the production sector, as highlighted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The signatories stress the importance of maintaining the 15% contribution threshold as a fair and proportionate benchmark for the regulatory framework. Despite the change in direction prompted by U.S. pressure identifying the existing legislation as a trade issue, the United States trade representative has indicated that Canada may not receive full recognition for this adjustment.
