Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations that mandate foreign streaming companies, such as Netflix, to financially support Canadian content. The government’s proposal to substitute the 15% tax on large streamers’ Canadian revenue with public funding is being contested by these groups. Instead of a CRTC-regulated contribution system, the organizations argue that the government’s pledged annual funding could be altered at the federal budget’s discretion.
In a collective letter signed by 50 organizations, including the Canadian Media Producers Association and Canadian actor, writer, and director unions, concerns were raised about the uncertainty introduced by the government’s plan to eliminate the financial contribution requirement for streamers. The letter emphasized the importance of maintaining the 15% contribution benchmark as a fair and proportionate measure within the regulatory framework.
Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contributions for large streaming services, the government announced in June its intention to provide direct annual funding to the industry, leading to concerns within the production sector. Despite Ottawa’s shift in streaming regulations due to pressure from the U.S., the United States trade representative has expressed skepticism about Canada receiving recognition for these changes.
