A coalition of Canadian cultural sector entities is urging Prime Minister Mark Carney not to eliminate regulations mandating financial contributions from foreign streaming platforms like Netflix to support Canadian content. The government’s proposal to substitute the 15 per cent tax on major streamers’ Canadian revenue with government funding is being contested by these organizations. They argue that the pledged annual funding, unlike a CRTC-mandated contribution system, is susceptible to modifications through the federal budget.
In a joint letter to Carney endorsed by 50 groups, concerns were raised that the government’s committed annual funding of $600 million is insufficient as a replacement for enduring, legally enforceable contribution responsibilities. The letter underscores that discretionary funding is subject to budgetary constraints and external political influences, unlike a regulated contribution framework.
Signatories of the letter include the Canadian Media Producers Association, representing independent producers, and various unions representing Canadian actors, writers, and directors, along with multiple film festivals. Following the Canadian Radio-television and Telecommunications Commission’s decision to raise contributions for major streaming services to 15 per cent, the government announced in June its intention to introduce a new policy directive and provide direct annual funding to the industry.
The government later stated in a court filing its intention to do away with the financial contribution mandate for streamers. The letter, also directed to Culture Minister Marc Miller, expresses concerns that the government’s June announcement has introduced uncertainty within the production sector.
The letter emphasizes that the 15 per cent contribution requirement should remain intact as a benchmark for the ensuing regulatory framework and should not be diluted through the replacement of the foundational contribution mechanism, highlighting the importance of maintaining this threshold as equitable and proportionate.
Despite Ottawa’s policy reversal on the streaming regulations following pressure from the United States, which flagged the enabling legislation as a trade concern, the U.S. trade representative has indicated that Canada would not receive substantial recognition for the adjustment.
