Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain regulations that require foreign streaming platforms, such as Netflix, to contribute financially to Canadian content. The government’s plan to replace the 15% tax on large streamers’ Canadian revenue with government funding is being contested by these groups. In a joint letter signed by 50 organizations, they express concerns that the proposed annual funding, unlike a CRTC-regulated contribution system, is subject to changes through the federal budget, making it less reliable. The signatories, including the Canadian Media Producers Association and unions representing Canadian actors, writers, directors, and various film festivals, emphasize that discretionary funding is susceptible to budget fluctuations and external political pressures, whereas a regulated contribution framework offers stability.
The government’s decision to eliminate the financial contribution requirement for streamers, following the CRTC’s increase in contributions for large streaming services, has caused uncertainty in the production sector. The letter, also directed to Culture Minister Marc Miller, highlights the importance of maintaining the 15% contribution benchmark as a fair and proportionate measure within the regulatory framework. Despite Ottawa’s reversal on the streaming rules due to pressure from the U.S., which viewed the enabling legislation as a trade issue, the United States trade representative has indicated that Canada’s actions may not be fully acknowledged.
Prime Minister Mark Carney defended the decision to roll back the “Netflix tax” by emphasizing affordability as a key factor. The cultural sector organizations stress the significance of upholding contribution requirements for foreign streaming companies to support Canadian content creation and ensure a level playing field for the industry.