Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations that require foreign streaming services, such as Netflix, to contribute financially to Canadian content. The government’s proposal to substitute the 15 per cent tax on large streamers’ Canadian revenue with government funding is being contested by these groups.
In a 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 plan to replace a CRTC-regulated contribution regime with discretionary funding. The letter emphasized that while the government’s $600 million annual pledge is appreciated, it is not a sufficient alternative to legally enforceable contribution obligations.
Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contributions for large streaming services to 15 per cent, the government announced in June its intention to provide direct annual funding instead of maintaining the financial contribution requirement for streamers. However, the signatories of the letter expressed unease about the uncertainty introduced into the production sector by the government’s shifting policies.
The letter also addressed Culture Minister Marc Miller, highlighting the importance of maintaining the 15 per cent contribution requirement as a benchmark for the regulatory framework. Despite the government’s decision to roll back the “Netflix tax” following pressure from the U.S., the United States trade representative has indicated that Canada may not receive recognition for this change.
The organizations remain steadfast in their belief that a regulated contribution framework is essential to support the Canadian cultural sector and ensure fair and proportionate funding for Canadian content.