Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations that require foreign streaming companies like Netflix to contribute financially to Canadian content. The government’s plan to replace the 15 per cent tax on large streamers’ Canadian revenue with government funding has drawn criticism from these groups, who argue that direct funding is not a sufficient substitute.
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 proposal to provide annual funding that could be altered through the federal budget, unlike a CRTC-regulated contribution system.
The letter emphasized that while the government’s pledge of $600 million per year is appreciated, it does not offer the same level of certainty and enforcement as a regulated contribution framework. The signatories stressed the importance of maintaining the 15 per cent contribution requirement as a fair and proportionate benchmark for the regulatory framework.
The controversy arose after the Canadian Radio-television and Telecommunications Commission (CRTC) announced an increase in contributions for large streaming services to 15 per cent, prompting the government to shift its approach towards providing direct industry funding instead. This decision has created uncertainty within the production sector, according to the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
While the government’s decision to eliminate the financial contribution requirement for streamers was made partly in response to trade concerns raised by the United States, the move has not been positively acknowledged by the U.S. trade representative, who mentioned that Canada would not receive significant credit for the change.