A coalition of Canadian cultural organizations is urging Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming platforms like Netflix toward Canadian content. The government’s proposal to substitute the existing 15 percent tax on large streamers with direct government funding has raised concerns among the 50 signatory groups. In a letter to Carney, they argue that while the government’s pledged annual funding of $600 million is appreciated, it lacks the permanence and enforceability of a regulated contribution system overseen by the CRTC.
Signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian entertainment professionals, and multiple film festivals. The government’s plan to replace the financial contribution requirement with discretionary funding has created uncertainty in the production sector, as noted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
Despite the Canadian Radio-television and Telecommunications Commission (CRTC) initially increasing the contribution rate for large streaming services to 15 percent, the government’s subsequent announcement to eliminate the financial obligation for streamers has drawn criticism from the industry stakeholders. The letter emphasizes the importance of maintaining the 15 percent contribution benchmark as a fair and appropriate standard for the regulatory framework.
The shift in Ottawa’s stance on streaming regulations came after the U.S. expressed concerns about the legislation being a trade issue. Nonetheless, the United States trade representative has indicated that Canada may not receive recognition for the change.