Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney not to eliminate regulations that mandate foreign streaming services like Netflix to financially support Canadian content. The government’s proposal to replace the 15 percent tax on major streamers’ Canadian revenue with government funding is being contested by these groups, stating that government funding is not a sufficient alternative.
In a joint letter signed by 50 organizations, it is emphasized that the pledged annual funding, unlike a CRTC-regulated contribution system, can be altered through the federal budget. The letter highlights that while the government’s commitment of $600 million per year is appreciated, it lacks the permanence and legal enforceability of contribution obligations set by regulation.
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 replace the financial contribution requirement for streamers with direct annual funding came following the CRTC’s move to raise contributions for large streaming services to 15 percent.
The letter, also directed to Culture Minister Marc Miller, expresses concerns over the uncertainty introduced into the production sector by the government’s announcement in June. It stresses the importance of maintaining the 15 percent contribution benchmark as a fair and proportionate regulatory standard.
Although Ottawa shifted its stance on streaming rules due to U.S. pressure labeling the enabling legislation as a trade concern, the U.S. trade representative has indicated that Canada’s action may not receive full recognition.
