A coalition of Canadian cultural organizations is urging Prime Minister Mark Carney not to eliminate the requirement for foreign streaming services like Netflix to contribute financially to Canadian content. The government’s proposal to replace the current 15% tax on large streamers’ Canadian revenue with government funding has sparked concerns among the groups, who believe that direct funding is not a sufficient substitute.
In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and various unions representing Canadian actors, writers, and directors, the groups argue that the government’s pledge of $600 million per year lacks the durability and legal enforceability of a regulated contribution system overseen by the CRTC. They emphasize that discretionary funding is subject to budget constraints and external political pressures, unlike a regulated framework.
The letter, also addressed to Culture Minister Marc Miller, expresses worry over the uncertainty introduced into the production sector by the government’s decision to eliminate the financial contribution requirement for streamers. Despite the government’s plan to provide direct annual funding to the industry in lieu of contributions, the signatories stress the importance of maintaining the 15% contribution benchmark as a fair and proportionate measure within the regulatory framework.
The shift in Ottawa’s approach to streaming rules, prompted by concerns raised by the United States regarding trade implications, has drawn skepticism from the U.S. trade representative, who indicated that Canada may not receive full recognition for the change.