Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to maintain regulations that require foreign streaming services like Netflix to contribute financially to Canadian content. The government had previously announced plans to replace the 15% tax on large streaming platforms with direct government funding, a move that has raised concerns among industry groups.
In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and unions representing Canadian actors and directors, the groups expressed reservations about the proposed shift. They emphasized that while the government’s pledge of $600 million annually is appreciated, it lacks the permanence and enforceability of a regulated contribution system overseen by the CRTC.
The letter highlights the risks associated with discretionary funding, which can be subject to budgetary constraints and external pressures, unlike a regulated framework. The signatories argue that a regulated contribution regime provides stability and ensures a consistent level of support for the production sector.
Following the CRTC’s decision to increase contribution requirements for streaming services, the government initially intended to provide direct funding to the industry. However, a subsequent court document indicated that the financial contribution obligation for streamers would be eliminated, leading to uncertainty within the production sector.
The letter, also addressed to Culture Minister Marc Miller, stresses the importance of maintaining the 15% contribution threshold as a fair and proportional benchmark for the regulatory framework. Despite the government’s decision to revise the streaming rules in response to U.S. trade concerns, the United States trade representative has indicated that Canada may not receive recognition for the change.