Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to retain regulations mandating foreign streaming services such as Netflix to contribute financially to Canadian content. The government’s proposal to substitute the 15% tax on major streaming platforms’ Canadian revenue with government funding has been criticized by these groups. In a joint letter signed by 50 organizations, it is argued that the government’s pledged yearly funding, unlike a CRTC-regulated contribution system, is subject to alteration through the federal budget, making it less reliable.
The signatories of the letter, including the Canadian Media Producers Association and unions representing Canadian actors, writers, directors, and various film festivals, express concerns over the uncertainty introduced into the production sector by the government’s decision to eliminate the financial contribution requirement for streamers. This move came after the Canadian Radio-television and Telecommunications Commission raised contributions for large streaming services to 15%, with the government subsequently announcing plans to replace the policy directive with direct annual funding for the industry.
The letter stresses the importance of maintaining the 15% contribution benchmark as a fair and proportionate measure within the regulatory framework. While the government’s shift in approach to the streaming rules was influenced by the U.S. designating the enabling legislation as a trade issue, the United States trade representative has indicated that Canada would not receive significant credit for this adjustment.