Dozens of Canadian cultural sector organizations have urged Prime Minister Mark Carney not to eliminate regulations that compel foreign streaming platforms like Netflix to financially support Canadian content. The government’s proposal to replace the 15 per cent tax on major streamers’ Canadian earnings with direct government funding has been criticized by these groups. They argue that the annual funding commitment lacks the stability and enforceability of a CRTC-regulated contribution system. The signatories, including the Canadian Media Producers Association, various unions representing Canadian entertainment professionals, and multiple film festivals, stress that discretionary funding is susceptible to budgetary and political influences, unlike a regulated contribution framework.
Following the Canadian Radio-television and Telecommunications Commission’s decision to raise contributions for large streaming services to 15 per cent, the government announced in June its intention to introduce a new policy directive that would provide the industry with direct annual funding instead. Subsequently, the government indicated in a legal document its intent to “eliminate” the financial contribution mandate for streamers. Expressing concern over the uncertainty introduced by the government’s June announcement, the letter, also directed to Culture Minister Marc Miller, emphasizes the importance of maintaining the 15 per cent contribution threshold as a fair and appropriate standard within the regulatory framework.
While the Canadian government reversed course on the streaming regulations following pressure from the U.S., which viewed the legislation as a trade concern, the United States trade representative has indicated that Canada’s actions may not be fully acknowledged or credited.
