Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to retain regulations that compel foreign streaming platforms, such as Netflix, to contribute financially to Canadian content. Despite the government’s proposal to replace the 15% tax on major streamers’ Canadian revenue with direct government funding, these organizations argue that this is insufficient.
In a joint letter signed by 50 groups, it is emphasized that the committed annual funding, unlike a CRTC-regulated contribution system, is susceptible to alterations through the federal budget. The letter highlights that while the government’s $600 million yearly commitment is appreciated, it does not serve as a substitute for enduring, legally enforceable contribution obligations that a regulated framework provides.
Signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian actors, writers, and directors, as well as multiple film festivals. The government’s decision to eliminate the financial contribution requirement for streamers after the CRTC raised contributions for large streaming services to 15% has stirred uncertainty in the production sector, as noted in the letter addressed to Culture Minister Marc Miller.
Despite Ottawa’s shift in streaming regulations following pressure from the U.S., which identified the legislation as a trade concern, the U.S. trade representative has indicated that Canada would not receive significant acknowledgment for this adjustment. The letter stresses the importance of maintaining the 15% contribution benchmark to uphold a fair and proportional regulatory framework.