Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney not to eliminate requirements for foreign streaming companies like Netflix to contribute financially to Canadian content. The government had proposed replacing the 15 per cent tax on revenue from large streamers with 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 promised annual funding, unlike a CRTC-regulated contribution system, could be altered through the federal budget. The letter emphasizes that while the government’s $600 million annual commitment is appreciated, it is not a reliable replacement for legally enforceable contribution obligations. According to the letter, discretionary funding is susceptible to budgetary and external political influences, whereas a regulated contribution framework is not.
Signatories of the letter include the Canadian Media Producers Association, unions representing Canadian actors, writers, directors, and various film festivals. The call comes after the Canadian Radio-television and Telecommunications Commission (CRTC) raised contributions for major streaming services to 15 per cent. In response, the government announced plans to introduce a new policy directive and provide direct annual funding to the industry, effectively eliminating the financial contribution requirement for streamers, as stated in a court document.
The letter, also directed to Culture Minister Marc Miller, expresses concerns about the uncertainty introduced into the production sector by the government’s June announcement. It argues that the 15 per cent contribution requirement should be maintained as a benchmark for the regulatory framework and not diminished by altering the base contribution mechanism.
Despite altering course on the streaming regulations following pressure from the U.S., which identified the legislation as a trade issue, the move did not receive full acknowledgement from the United States trade representative.