Dozens of Canadian cultural sector organizations have urged Prime Minister Mark Carney not to eliminate the requirement for foreign streaming services like Netflix to contribute financially to Canadian content. The government’s plan to replace the 15 percent tax on large streamers’ Canadian revenue with government funding has been criticized by these groups as inadequate.
In a letter signed by 50 organizations, they argue that the proposed annual funding, unlike a CRTC-regulated contribution system, could be altered through the federal budget. The letter emphasizes that while the government’s $600 million annual commitment is appreciated, it does not provide the same level of certainty and enforceability as a regulated contribution framework.
Notable signatories of the letter include the Canadian Media Producers Association, various unions representing Canadian actors, writers, and directors, as well as several film festivals. The government’s decision to shift from requiring financial contributions from large streaming services to providing direct annual funding has caused significant uncertainty in the production sector, according to the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The letter stresses the importance of maintaining the 15 percent contribution requirement as a fair and proportionate benchmark within the regulatory framework. Despite the government’s change in direction following pressure from the United States, which viewed the enabling legislation as a trade issue, the United States trade representative has indicated that Canada would not receive recognition for this decision.