Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations that mandate foreign streaming services like Netflix to contribute financially to Canadian content. The government’s proposal to replace the 15% tax on major streamers’ Canadian revenue with government funding is being contested by these groups. In a letter signed by 50 organizations, it is argued that the promised yearly funding, unlike a CRTC-regulated contribution system, is vulnerable to alteration through federal budget decisions rather than being legally binding.
Signatories of the letter include the Canadian Media Producers Association, representing independent producers, as well as unions representing Canadian actors, writers, directors, and various film festivals. Following the Canadian Radio-television and Telecommunications Commission’s (CRTC) decision to raise contributions for large streaming platforms to 15%, the government indicated in June its intention to introduce a new policy directive and offer direct annual financial support to the industry.
However, a subsequent court document from the government stated its intention to “eliminate” the financial contribution obligation for streamers. The letter, also directed to Culture Minister Marc Miller, expresses concerns that the government’s June announcement has introduced uncertainty into the production sector. The signatories emphasize the importance of maintaining the 15% contribution requirement as a reasonable benchmark for the regulatory framework and advocate against diminishing this threshold in any replacement mechanism.
While the Canadian government altered its stance on the streaming regulations following pressure from the U.S., which identified the legislation as a trade issue, the United States trade representative has indicated that Canada would not receive significant recognition for this change.