Dozens of Canadian cultural sector organizations have united in a plea to Prime Minister Mark Carney, urging him not to eliminate the requirement for foreign streaming companies like Netflix to contribute financially to Canadian content.
The government had proposed substituting the current 15 per cent tax on large streamers’ Canadian revenue with government funding, but the organizations argue that this is insufficient. In a joint letter signed by 50 organizations, it is emphasized that while the government’s pledged $600 million annual funding is appreciated, it is not a reliable alternative to a regulated contribution system overseen by the CRTC, which is not subject to changes in the federal budget.
Signatories of the letter include the Canadian Media Producers Association, representing independent producers, as well as unions representing Canadian actors, writers, directors, and various film festivals. The signatories express concern over the government’s decision to replace the financial contribution requirement for streamers with direct annual funding, which has created uncertainty in the production sector.
Despite the Canadian Radio-television and Telecommunications Commission (CRTC) increasing contributions for large streaming services to 15 per cent, the government announced plans to eliminate the financial contribution requirement for streamers in a court document. The letter also addresses Culture Minister Marc Miller, stressing the importance of maintaining the 15 per cent contribution benchmark within the regulatory framework.
While the government shifted its stance on the streaming rules following pressure from the U.S., which identified the legislation as a trade issue, the United States trade representative has indicated that Canada may not receive recognition for this change.