Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain the requirement for foreign streaming companies like Netflix to contribute financially towards Canadian content. The government’s plan to replace the 15 per cent tax on large streamers’ Canadian revenue with direct government funding is being contested by these groups.
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 annual funding that can be altered through the federal budget, unlike a regulated contribution regime overseen by the CRTC.
The letter emphasized that while the government’s proposed $600 million annual funding is appreciated, it cannot replace the need for legally enforceable contribution obligations. The signatories highlighted the importance of a regulated contribution framework that is not subject to budget fluctuations and external political pressures.
The disagreement stems from the government’s decision to eliminate the financial contribution requirement for streamers and provide direct annual funding following the CRTC’s increase in contributions for large streaming services. This move has caused uncertainty in the production sector, as noted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The letter stressed the significance of maintaining the 15 per cent contribution requirement as a fair and proportionate benchmark for the regulatory framework. Despite Ottawa’s shift in policy attributed to pressure from the U.S., which considered the legislation a trade issue, the United States trade representative indicated that Canada’s actions may not receive full recognition.
