Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to retain the requirement for foreign streaming companies, such as Netflix, to financially support Canadian content. The government’s plan to replace the 15% tax on large streamers’ Canadian revenue with government funding is being contested by these groups, who argue that government funding is not a sufficient substitute for a regulated contribution regime overseen by the CRTC.
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 proposed annual funding being subject to changes through the federal budget. The letter emphasized that while the government’s $600 million yearly commitment is appreciated, it lacks the enforceability and stability of a regulated contribution framework.
Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contributions for large streaming services, the government announced in June its intention to replace the financial contribution requirement with direct annual funding for the industry. However, a subsequent court document revealed the government’s plan to “eliminate” the financial contribution obligation for streamers, causing uncertainty in the production sector.
The letter, also directed to Culture Minister Marc Miller, stressed the importance of maintaining the 15% contribution requirement as a fair and appropriate benchmark for the regulatory framework. Despite the government’s shift in streaming rules prompted by U.S. concerns regarding trade, the United States trade representative expressed skepticism about granting Canada credit for the changes.