A coalition of Canadian cultural organizations are urging Prime Minister Mark Carney not to eliminate regulations that require foreign streaming platforms such as Netflix to financially support Canadian content. The government’s proposal to replace the 15% tax on major streamers’ Canadian revenue with government funding is being opposed by these organizations, who argue that direct funding is not a sufficient substitute.
In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and unions representing Canadian actors, writers, and directors, concerns were raised regarding the government’s commitment to provide annual funding that could be subject to changes through the federal budget. The letter emphasized that a regulated contribution regime by the Canadian Radio-television and Telecommunications Commission (CRTC) offers more stability compared to discretionary funding that can be influenced by budget constraints and external political pressures.
The government’s decision to eliminate the financial contribution requirement for streamers, following the CRTC’s increase in contributions for large streaming services, has sparked uncertainty within the production sector, according to the letter also addressed to Culture Minister Marc Miller. The signatories stressed the importance of maintaining the 15% contribution benchmark to uphold a fair and proportionate regulatory framework.
Despite the government’s shift in streaming regulations due to pressure from the U.S., which identified the legislation as a trade concern, the United States trade representative indicated that Canada would not receive recognition for the change. Prime Minister Carney defended the decision to roll back the Cancon tax, citing affordability as a primary consideration.