Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to retain regulations that mandate 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 is being criticized by these groups.
In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and various unions representing Canadian artists and filmmakers, concerns were raised about the government’s plan to switch to discretionary funding instead of a regulated contribution system overseen by the CRTC. The letter emphasizes that the government’s pledged annual funding of $600 million, while appreciated, is not a sufficient substitute for a legally binding contribution obligation.
The controversy arose after the Canadian Radio-television and Telecommunications Commission (CRTC) raised the contribution rate for large streaming platforms to 15%, prompting the government to announce a shift towards direct funding for the industry in June. This move was later detailed in a court document indicating the removal of the financial contribution requirement for streamers.
The letter, also directed to Culture Minister Marc Miller, expresses concerns about the uncertainty introduced by the government’s decision in June, highlighting the importance of maintaining the 15% contribution benchmark as a fair and appropriate standard for the regulatory framework.
Although Ottawa altered its stance on the streaming regulations following pressure from the U.S., which viewed the legislation as a trade concern, the United States trade representative has indicated that Canada may not receive recognition for the change.