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. Despite the government’s plan to substitute the 15 per cent tax on large streamers’ Canadian revenue with government funding, these organizations argue that it is not a sufficient alternative. In a joint letter signed by 50 organizations, they express concerns that the proposed annual funding, unlike a CRTC-regulated contribution system, could be altered through federal budget decisions.
The letter emphasizes that while the government’s commitment of $600 million per year is appreciated, it cannot replace the necessity for enduring and enforceable contribution obligations. The signatories, which include the Canadian Media Producers Association and unions representing Canadian actors, writers, directors, and film festivals, stress that discretionary funding is susceptible to budgetary and political influences, unlike a regulated contribution framework.
Following the Canadian Radio-television and Telecommunications Commission (CRTC) increasing contributions for large streaming services to 15 per cent, the government announced its intention in June to provide direct annual funding to the industry instead of upholding the financial contribution requirement. The letter, also directed to Culture Minister Marc Miller, asserts that the government’s June announcement has introduced significant uncertainty within the production sector.
While the government shifted its stance on the streaming regulations following pressure from the U.S., the United States trade representative has indicated that Canada would not receive recognition for this change. The letter advocates for maintaining the 15 per cent contribution requirement as a fair and appropriate benchmark within the regulatory framework.