Dozens of Canadian cultural sector groups are urging Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming services like Netflix to support Canadian content. The government’s proposal to replace the 15% levy on major streamers’ Canadian earnings with government funding is being contested by these organizations, asserting that such funding lacks the permanence of a CRTC-regulated contribution system. A joint letter signed by 50 entities, including the Canadian Media Producers Association and Canadian actor, writer, and director unions, emphasizes that the government’s pledged annual funding, while appreciated, is vulnerable to budgetary alterations and external pressures, unlike a structured contribution framework.
Following the Canadian Radio-television and Telecommunications Commission’s (CRTC) decision to raise contributions for large streaming platforms to 15%, the government announced its intention in June to discontinue the financial contribution requirement and instead provide direct annual funding to the industry. This move was later confirmed in a court document stating the government’s plan to “eliminate” the financial obligations for streamers. The signatories of the letter express concerns about the uncertainty introduced into the production sector by the government’s June announcement, urging for the retention of the 15% contribution requirement as a key benchmark for the regulatory framework.
Despite the alteration in Ottawa’s stance on streaming regulations prompted by U.S. concerns over trade implications, the United States trade representative has indicated that Canada may not receive recognition for the change. The letter stresses the importance of upholding the 15% contribution threshold and warns against diminishing this requirement in the new contribution mechanism.