A coalition of Canadian cultural organizations is urging Prime Minister Mark Carney to retain regulations mandating foreign streaming services like Netflix to financially support Canadian content. The government’s proposal to replace the 15% revenue tax on major streamers with direct government funding has faced criticism from these groups.
In a joint letter signed by 50 organizations, they express concerns that the proposed annual funding, unlike the existing CRTC-controlled contribution system, could be altered through annual budget decisions. The letter emphasizes the importance of legally enforceable contribution obligations over discretionary funding, citing potential budget fluctuations and political influences.
The signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian performers, writers, directors, and multiple film festivals.
Following the CRTC’s decision to increase contributions from large streaming platforms to 15%, the government announced in June its intention to introduce a new policy directive, shifting to direct annual funding for the industry.
A subsequent court filing by the government indicated its plan to “eliminate” the financial contribution requirement for streamers.
The letter, also directed to Culture Minister Marc Miller, highlights the uncertainty introduced into the production sector by the government’s June announcement.
The letter asserts that the 15% contribution requirement should serve as a benchmark for the regulatory framework and should not be diluted by the replacement of the current contribution mechanism, deeming it fair and proportionate.
While the Canadian government shifted its stance on the streaming regulations following pressure from the U.S., the United States trade representative has indicated that Canada may not receive significant credit for the change.