A group of Canadian cultural organizations are urging Prime Minister Mark Carney to retain regulations that require foreign streaming platforms such as Netflix to financially support Canadian content. Despite the government’s plan to replace the 15% tax on large streamers’ Canadian revenue with government funding, these organizations argue that direct funding is not a sufficient substitute.
In a letter signed by 50 organizations, including the Canadian Media Producers Association and unions representing Canadian actors, writers, and directors, concerns were raised about the government’s pledge of $600 million per year in lieu of a regulated contribution system. The letter emphasized that discretionary funding is subject to budgetary and political fluctuations, unlike a regulated contribution framework.
Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contributions from large streaming services to 15%, the government announced its intention to provide direct annual funding to the industry instead of maintaining financial contribution requirements for streamers. This move has sparked uncertainty within the production sector, as highlighted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The letter also stressed the importance of maintaining the 15% contribution benchmark and avoiding any reduction in the regulatory framework. Despite the shift in streaming rules prompted by trade concerns raised by the United States, the move is not expected to earn Canada recognition from the U.S. trade representative for easing trade tensions.