Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney not to eliminate regulations that mandate foreign streaming platforms like Netflix to contribute financially to Canadian content. The government had proposed replacing the 15% tax on large streaming companies’ Canadian revenue with direct government funding, but the organizations argue that this is not an adequate substitute.
In a letter signed by 50 organizations, it is highlighted that the government’s pledged annual funding, unlike a CRTC-regulated contribution system, is subject to changes through the federal budget. The letter emphasizes that discretionary funding, despite being appreciated, is vulnerable to budget fluctuations and external political pressures, whereas a regulated contribution framework is more stable and enforceable.
Signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian actors, writers, directors, and multiple film festivals. The government’s decision to replace the financial contribution requirement for streamers with direct annual funding came after the CRTC raised contributions for large streaming services to 15%. This move has caused significant uncertainty within the production sector, as indicated in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The letter stresses that the 15% contribution requirement should serve as a benchmark for the regulatory framework and should not be weakened by altering the base contribution mechanism. Despite Ottawa’s shift in streaming regulations following pressure from the U.S., the United States trade representative has indicated that Canada would not receive full recognition for this change.
Overall, the cultural sector organizations are advocating for a stable and enforceable contribution framework to support Canadian content creation and production in the long term.