Dozens of Canadian cultural sector organizations have urged Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming services like Netflix to support Canadian content. The government had proposed replacing the 15% tax on major streamers’ Canadian revenue with direct government funding, a move contested by the groups.
In a joint letter signed by 50 organizations, it was emphasized that the government’s pledge of $600 million annually, while appreciated, is not a sufficient substitute for a regulated contribution system. The letter highlighted concerns that discretionary funding could be altered in the federal budget, unlike a CRTC-mandated contribution structure that offers more stability.
Signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian actors, writers, and directors, as well as several film festivals. The controversy arose after the Canadian Radio-television and Telecommunications Commission (CRTC) proposed an increase in contributions for major streaming platforms to 15%, prompting the government to announce a shift towards direct annual funding instead.
The letter, also directed to Culture Minister Marc Miller, expressed the industry’s unease following the government’s decision to eliminate the financial contribution requirement for streamers, introducing uncertainty in the production sector. Despite the U.S. labeling the legislation as a trade issue, resulting in Ottawa reconsidering the streaming rules, the United States Trade Representative suggested that Canada may not receive full recognition for the adjustment.
The signatories stressed the importance of maintaining the 15% contribution benchmark as a fair and reasonable requirement within the regulatory framework, advocating against reducing this threshold through the proposed changes. Prime Minister Mark Carney defended the decision to abolish the tax on large streamers, citing affordability as the primary consideration.