Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming services like Netflix towards Canadian content. The government’s proposed replacement of the existing 15% tax on large streamers’ Canadian revenue with direct government funding is being contested by these groups.
In a joint letter signed by 50 organizations, they express concerns that the promised annual funding, as opposed to a CRTC-regulated contribution system, could be subject to changes in federal budget allocations. The letter emphasizes that while the government’s commitment of $600 million annually is appreciated, it does not serve as a reliable substitute for enforceable contribution obligations under a regulated framework.
Notable signatories of the letter include the Canadian Media Producers Association, representing independent producers, and unions representing Canadian actors, writers, directors, and various film festivals. Following the Canadian Radio-television and Telecommunications Commission’s decision to raise contributions from large streaming platforms to 15%, the government announced plans in June to replace the financial contribution requirement with direct industry funding.
The uncertainty introduced by the government’s June announcement, as highlighted in the letter also addressed to Culture Minister Marc Miller, has raised concerns within the production sector. The signatories underscore the importance of maintaining the 15% contribution benchmark as a fair and proportionate measure within the regulatory framework.
Despite the shift in Ottawa’s stance on streaming regulations, prompted in part by U.S. concerns labeling the legislation as a trade issue, the United States trade representative has indicated that Canada may not receive full recognition for the change.