Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to uphold regulations mandating financial contributions from foreign streaming platforms such as Netflix to support Canadian content. The government’s proposal to replace the current 15 per cent tax on revenue from major streamers with direct government funding is being contested by these groups, arguing that it lacks the permanence and enforceability of a CRTC-mandated contribution system.
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 over the government’s plan to switch from a regulated contribution model to discretionary annual funding. The signatories emphasized that while the government’s commitment of $600 million per year is appreciated, it does not offer the same level of stability and legal obligation as a regulated contribution framework.
Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contributions from large streaming services to 15 per cent, the government announced its intention in June to eliminate the financial contribution requirement for streamers and provide industry support through direct annual funding. However, this shift in policy has led to uncertainty within the production sector, as highlighted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The organizations emphasized the importance of maintaining the 15 per cent contribution benchmark as a fair and proportionate measure within the regulatory framework. Despite the government’s pivot on the streaming rules, prompted by pressure from the United States citing trade concerns, the move has not garnered full approval from the U.S. trade representative, who stated that Canada would not receive significant recognition for the change.