Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming platforms like Netflix toward Canadian content. The government’s proposal to replace the 15% tax on major streamers’ Canadian revenue with direct government funding is being contested by these groups, who argue that this approach is insufficient.
In a joint letter signed by 50 organizations, it is highlighted that the promised annual funding, unlike the contributions under a CRTC-regulated regime, is subject to alterations through federal budget decisions. The letter emphasizes the importance of a legally enforceable contribution framework over discretionary funding, stating that the government’s pledged $600 million per year, while appreciated, does not provide the same level of certainty and stability.
Signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian performers and filmmakers, and multiple film festivals. The government’s decision to replace financial contribution obligations with direct annual funding came after the CRTC raised the contribution rate for major streaming services. However, this move has caused significant uncertainty within the production sector, as noted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The letter stresses the importance of maintaining the 15% contribution requirement as a benchmark for the regulatory framework, asserting that this threshold is equitable and appropriate. Despite the government’s pivot on the streaming rules following pressure from the U.S., the United States trade representative has indicated that Canada may not receive significant credit for this action.