Dozens of Canadian cultural organizations urge Prime Minister Mark Carney to retain regulations that require foreign streaming platforms like Netflix to financially support Canadian content. While the government plans to replace the 15% revenue tax on large streamers with direct funding, these organizations argue that government funding is not a sufficient substitute for a regulated contribution system. They emphasize in a letter signed by 50 groups that the annual funding commitment, being discretionary, is subject to changes in federal budgets and external political influences, unlike a CRTC-regulated contribution regime.
Signatories of the letter include the Canadian Media Producers Association, unions representing Canadian actors, writers, directors, and various film festivals. The government’s decision to eliminate the financial contribution requirement for streamers following the CRTC’s increase to 15% contributions has caused significant uncertainty in the production sector, as highlighted in the letter addressed to Culture Minister Marc Miller.
Despite the U.S. identifying the legislation as a trade issue, prompting Ottawa to alter its stance on streaming rules, the United States trade representative has indicated that Canada may not receive full acknowledgment for this adjustment. The letter stresses the importance of maintaining the 15% contribution benchmark, stating that it is a fair and proportional measure for the regulatory framework.