Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney not to eliminate requirements for foreign streaming platforms like Netflix to contribute financially to Canadian content. The government’s plan to replace the 15% tax on large streamers’ Canadian revenue with direct government funding is being criticized by these groups. They argue that the proposed annual funding, unlike a regulated contribution system by the CRTC, is subject to changes 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 uncertainty introduced by the government’s decision to provide industry funding instead of maintaining contribution obligations. The letter emphasizes that while the government’s $600 million annual pledge is appreciated, it lacks the stability and enforceability of a regulated contribution framework.
Following the Canadian Radio-television and Telecommunications Commission’s (CRTC) move to increase contributions from large streaming services, the government announced its intention to eliminate the financial contribution requirement for streamers and provide direct funding instead. This shift in policy has raised concerns within the production sector, as highlighted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
Despite the change in direction attributed to pressure from the United States regarding trade concerns, the letter stresses the importance of maintaining the 15% contribution threshold as a fair and appropriate benchmark for the regulatory framework. The United States trade representative has indicated that Canada may not receive recognition for this policy change, despite the perceived concession made in response to trade disputes.
