A coalition of Canadian cultural organizations is urging Prime Minister Mark Carney to maintain regulations that require foreign streaming platforms like Netflix to financially support Canadian content. The government’s plan to replace the 15% tax on large streamers’ Canadian revenue with direct funding has been met with opposition from these groups.
In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and various unions representing Canadian actors, writers, and directors, concerns were raised about the government’s proposal. The letter emphasized that the promised annual funding, unlike the current CRTC-regulated contribution system, could be subject to changes in federal budget allocations.
The signatories stressed that while the government’s pledge of $600 million per year was appreciated, it should not serve as a substitute for a legally enforceable contribution framework. They argued that discretionary funding could be influenced by budgetary constraints and external pressures, unlike a regulated contribution system.
The government’s decision to replace the contribution requirement for streamers with direct funding came after the Canadian Radio-television and Telecommunications Commission (CRTC) raised the contribution rate to 15% for large streaming services. This shift in policy direction has caused uncertainty within the production sector, as highlighted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The letter emphasized the importance of maintaining the 15% contribution benchmark as a fair and proportionate measure within the regulatory framework. Despite the change in streaming regulations following pressure from the U.S., the United States trade representative indicated that Canada would not receive full recognition for this adjustment.
