Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming services like Netflix to support Canadian content. Despite the government’s plan to substitute the 15% tax on large streamers’ Canadian revenue with direct funding, these groups argue that government funding is not a sufficient replacement. In a letter signed by 50 organizations, they express concerns that the proposed annual funding, unlike a CRTC-regulated contribution system, is subject to changes in federal budget allocations.
The signatories, which include the Canadian Media Producers Association and unions representing Canadian actors, writers, directors, and film festivals, emphasize that while the government’s $600 million annual commitment is appreciated, it lacks the stability and enforceability of a regulated contribution framework. They highlight that discretionary funding is vulnerable to budgetary fluctuations and external pressures, unlike a regulated system.
Following the Canadian Radio-television and Telecommunications Commission’s decision to raise contributions for major streaming services to 15%, the government announced a new policy directive in June to provide direct funding to the industry, eliminating the financial contribution requirement for streamers. This move has sparked uncertainty in the production sector, as noted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The organizations stress the importance of maintaining the 15% contribution threshold as a fair benchmark for the regulatory framework and caution against diminishing this requirement. Despite the shift in streaming rules prompted by U.S. concerns about trade implications, the United States trade representative has indicated that Canada would not receive recognition for the change.
