Dozens of Canadian cultural sector organizations are urging Prime Minister Mark Carney to retain the requirement for foreign streaming companies like Netflix to contribute financially to Canadian content. The government’s plan to replace the 15 per cent tax on these companies’ Canadian revenue with government funding is being challenged by these groups. They argue in a letter signed by 50 organizations that the proposed annual funding, unlike a CRTC-regulated contribution system, could be altered through the federal budget.
The signatories of the letter, including the Canadian Media Producers Association and unions representing Canadian actors, writers, directors, and film festivals, express concerns about the uncertainty introduced into the production sector by the government’s decision to eliminate the financial contribution requirement for streamers. Despite the Canadian Radio-television and Telecommunications Commission (CRTC) raising the contributions for large streaming services to 15 per cent, the government announced in June a new policy directive to provide direct annual funding to the industry.
The letter emphasizes the importance of maintaining the 15 per cent contribution requirement as a fair benchmark for the regulatory framework. It highlights that while the government changed its stance on the streaming rules following pressure from the U.S., the United States trade representative has indicated that Canada may not receive recognition for this adjustment.
In response to questions about the decision to end the tax on large streamers for Canadian content funding, Prime Minister Mark Carney emphasized affordability as a key factor in the government’s decision-making process.