A coalition of Canadian cultural organizations is urging Prime Minister Mark Carney to retain regulations that mandate foreign streaming platforms, such as Netflix, to financially support Canadian content. The government’s proposal to replace the existing 15% tax on major streamers’ Canadian revenue with direct government funding is being contested by these groups, arguing that government funding is not a sufficient substitute.
In a joint letter signed by 50 organizations, it is emphasized that the proposed annual funding, unlike the contribution regime overseen by the CRTC, is susceptible to alterations through the federal budget. The letter stresses that while the government’s commitment of $600 million per year is appreciated, it is not a reliable replacement for legally binding contribution obligations, as discretionary funding is subject to budgetary and political influences.
Notable signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian actors, writers, and directors, as well as multiple film festivals.
Following the Canadian Radio-television and Telecommunications Commission’s decision to raise contributions from large streaming services to 15%, the government announced in June its intention to introduce a new policy directive, shifting towards providing direct annual funding to the industry.
In a court filing, the government indicated its plans to “eliminate” the financial contribution requirement for streamers, a move that the letter to Prime Minister Carney and Culture Minister Marc Miller criticizes for introducing uncertainty into the production sector.
According to the letter, the 15% contribution requirement is deemed appropriate and should serve as a benchmark for the regulatory framework, advocating against diminishing this threshold through the proposed replacement mechanism. The change in direction regarding streaming regulations came after the United States highlighted the enabling legislation as a trade issue, although the U.S. trade representative indicated that Canada’s actions would not be acknowledged as beneficial.
