Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to maintain regulations that require foreign streaming companies, such as 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 is being contested by these groups. They argue that the promised annual funding is not a sufficient substitute for a CRTC-regulated contribution regime because it can be altered through the federal budget.
In a 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 pledge of $600 million per year. The letter emphasized that discretionary funding is vulnerable to budget and external political pressures, unlike a regulated contribution framework.
After the Canadian Radio-television and Telecommunications Commission (CRTC) increased contributions for large streaming services to 15 per cent, the government announced in June its intention to provide direct annual funding to the industry, thereby eliminating the financial contribution requirement for streamers. This move has created uncertainty in the production sector, according to the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The letter also stressed the importance of maintaining the 15 per cent contribution requirement as a fair and proportionate benchmark for the regulatory framework. Despite the government’s decision to roll back the tax on large streamers to fund Canadian content, the United States trade representative has indicated that Canada may not receive full recognition for this action.