Many Canadian cultural organizations are urging Prime Minister Mark Carney to maintain regulations that require foreign streaming platforms such as Netflix to financially support Canadian content. The government’s plan to replace the 15 per cent tax on large streaming companies with government funding has sparked concerns among these groups.
In a joint letter signed by 50 organizations, it is highlighted that the proposed annual funding, unlike a CRTC-regulated contribution system, is susceptible to changes through the federal budget. The letter emphasizes that while the government’s commitment of $600 million per year is appreciated, it lacks the enforceability and stability of a regulated contribution framework.
The signatories of the letter include the Canadian Media Producers Association, representing independent producers, as well as unions for Canadian actors, writers, directors, and various film festivals.
Following the Canadian Radio-television and Telecommunications Commission (CRTC) decision to raise contributions from large streaming services to 15 per cent, the government announced in June a shift towards providing direct annual funding to the industry.
In a court filing, the government indicated its intention to remove the financial contribution obligation for streamers entirely, causing uncertainty in the production sector, as stated in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
Prime Minister Mark Carney explained that the decision to eliminate the tax on large streamers was made to prioritize affordability and had been finalized two months earlier.
The letter stresses that the 15 per cent contribution requirement should serve as a crucial benchmark in any new regulatory framework and should not be reduced through the replacement of the current contribution mechanism, emphasizing the importance of maintaining fairness and proportionality.
Although the Canadian government altered its approach to streaming regulations following pressure from the U.S., the United States trade representative cautioned that Canada may not receive full recognition for this policy change.