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. The government’s plan to substitute the 15% tax on major streamers’ Canadian revenue with public funding has drawn criticism from these groups, who argue that this approach lacks the stability of a CRTC-regulated contribution system. In a joint letter signed by 50 organizations, it is emphasized that while the government’s annual commitment of $600 million is appreciated, it does not replace the necessity for enduring, legally enforceable contribution obligations. The letter underscores that discretionary funding is subject to budgetary adjustments and external political pressures, unlike a regulated contribution framework.
Signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian actors, writers, and directors, as well as several film festivals. The discontent stems from the government’s decision to eliminate the financial contribution requirement for streamers following the CRTC’s increase of contributions to 15%. This move, announced in June, caused significant uncertainty in the production sector. The letter, also directed to Culture Minister Marc Miller, stresses the importance of maintaining the 15% contribution requirement as a fair and proportionate benchmark in the regulatory framework.
Although the Canadian government reversed its stance on the streaming regulations due to pressure from the U.S., who viewed the legislation as a trade issue, the United States trade representative has indicated that Canada would not receive recognition for this change.
