Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations that mandate foreign streaming platforms such as Netflix to contribute financially to Canadian content. The government’s proposal to replace the 15% revenue tax on major streamers with government funding is being contested by these groups, who argue that it is an insufficient substitute.
In a joint 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, which lacks the permanence and enforceability of a CRTC-regulated contribution system. The letter emphasized that discretionary funding is subject to budgetary and political pressures, unlike a regulated contribution framework.
Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contributions from large streaming services to 15%, the government announced its intention in June to provide industry funding through a new policy directive instead of financial contributions. However, a subsequent court document revealed the government’s intention to “eliminate” the financial contribution requirement for streamers.
The letter, also directed to Culture Minister Marc Miller, expressed concerns that the government’s June announcement had introduced uncertainty into the production sector. It underscored the importance of maintaining the 15% contribution requirement as a fair and proportionate benchmark for the regulatory framework.
Despite the shift in Ottawa’s stance on streaming regulations following pressure from the U.S., the United States trade representative indicated that Canada would not receive recognition for the change. Prime Minister Mark Carney defended the decision to roll back the “Netflix tax” as a matter of affordability, emphasizing that the move was made two months prior.
Overall, the cultural sector organizations are advocating for a stable and enforceable contribution framework to support Canadian content, emphasizing the significance of maintaining the 15% contribution benchmark.