Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to retain regulations that require foreign streaming platforms like Netflix to financially support Canadian content. The government’s proposal to replace the 15% tax on large streamers’ Canadian revenue with government funding is being contested by these groups. In a joint letter signed by 50 organizations, they argue that the government’s pledged annual funding, unlike a CRTC-regulated contribution system, is subject to potential changes through the federal budget.
The signatories of the letter, including the Canadian Media Producers Association and unions representing Canadian actors, writers, directors, and 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. Despite the Canadian Radio-television and Telecommunications Commission (CRTC) initially increasing contributions for large streaming services to 15%, the government announced in June its intention to issue a new policy directive and provide direct annual funding to the industry.
The letter emphasizes the importance of maintaining the 15% contribution requirement as a benchmark for the regulatory framework, stating that it should not be reduced through the replacement of the current contribution mechanism. Although the Canadian government shifted its stance on the streaming rules following pressure from the U.S., with the United States trade representative indicating that Canada would not receive acknowledgment for this change.