Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to retain regulations mandating that foreign streaming platforms such as Netflix contribute financially to Canadian content. The government’s proposal to replace the 15% tax on large streamers’ Canadian revenue with direct government funding is being contested by these groups. In a joint letter signed by 50 organizations, it is argued that the government’s pledged annual funding lacks the permanence and enforceability of a CRTC-regulated contribution system, as it could be altered in future federal budgets.
Signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian actors, writers, and directors, as well as several film festivals. Following the Canadian Radio-television and Telecommunications Commission’s decision to raise contributions for major streaming services, the government announced its intention in June to introduce a new policy directive, shifting towards providing the industry with direct yearly financial support.
However, a subsequent court document revealed the government’s plan to “eliminate” the financial contribution requirement for streamers, causing significant uncertainty within the production sector, according to the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller. The letter advocates maintaining the 15% contribution benchmark as a fair and reasonable standard within the regulatory framework. Despite the initial decision change on streaming rules due to U.S. concerns over trade implications, the United States trade representative has indicated that Canada may not receive recognition for this adjustment.
