A coalition of Canadian cultural sector groups is urging Prime Minister Mark Carney to maintain regulations that require foreign streaming platforms like Netflix to financially support Canadian content. The government’s proposal to replace the existing 15% revenue tax on major streamers with direct government funding is being contested by these organizations. They argue that the government’s commitment of $600 million annually, while appreciated, is not a sufficient substitute for a regulated contribution system overseen by the CRTC. According to a joint letter signed by 50 industry organizations, relying on discretionary funding could lead to changes based on budget constraints and political influences, unlike a fixed regulatory framework.
Among the signatories of the letter are the Canadian Media Producers Association, various unions representing Canadian actors, writers, and directors, as well as several film festivals. The debate escalated after the Canadian Radio-television and Telecommunications Commission (CRTC) raised the contribution threshold for major streaming services to 15%, prompting the government to announce a shift towards direct funding in June. However, a subsequent court filing indicated the government’s intention to abolish the financial contribution mandate for streamers, causing uncertainty within the production sector, as noted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The coalition insists that the 15% contribution threshold should be maintained as a benchmark in any new regulatory framework and not be weakened by altering the base contribution mechanism. Despite the U.S. raising concerns about the legislation as a trade issue, which prompted Ottawa’s policy reversal on streaming rules, the United States trade representative has indicated that Canada may not receive recognition for this change.