Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming services like Netflix for Canadian content. The government had proposed replacing the 15% tax on large streamers’ Canadian revenue with direct government funding, a move contested by these groups.
In a letter signed by 50 organizations, it is emphasized that the pledged annual funding, unlike a CRTC-regulated contribution system, could be altered through federal budget decisions. The letter highlights concerns that discretionary funding is susceptible to budget constraints and external political influences, unlike a regulated contribution framework that ensures stability.
Signatories of the letter include the Canadian Media Producers Association, representing independent producers, as well as unions representing Canadian actors, writers, directors, and various film festivals. Following the CRTC’s decision to increase contributions for major streaming platforms to 15%, the government announced plans in June to replace the financial contribution requirement with direct annual funding, a move that raised uncertainties within the production sector.
The letter, also addressed to Culture Minister Marc Miller, stresses the importance of maintaining the 15% contribution benchmark within the regulatory framework to ensure fairness and proportionality. Despite Ottawa’s shift in streaming rules due to U.S. trade concerns, the United States trade representative has indicated that Canada may not receive full recognition for these changes.