Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to uphold regulations mandating foreign streaming platforms like Netflix to financially support Canadian content. Despite the government’s plan to replace the 15% tax on large streamers’ Canadian revenue with direct government funding, the organizations argue that this approach is insufficient.
In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and unions representing Canadian actors, writers, and directors, concerns were raised about the government’s pledge of $600 million annually not being a reliable substitute for a regulated contribution framework. The letter emphasized that discretionary funding is susceptible to budget constraints and external political pressures, whereas a regulated contribution system would provide more stability.
The Canadian Radio-television and Telecommunications Commission (CRTC) had previously increased contribution requirements for large streaming services to 15%. However, the government announced its intention to eliminate the financial contribution obligation for streamers in favor of direct funding, causing uncertainty in the production sector.
The letter, also addressed to Culture Minister Marc Miller, stressed the importance of maintaining the 15% contribution threshold as a fair and proportionate benchmark for the regulatory framework. Despite the government’s shift in policy following pressure from the United States, the U.S. trade representative has indicated that Canada may not receive recognition for this change.
Prime Minister Mark Carney defended the decision to roll back the “Netflix tax” by emphasizing affordability as a key factor in the government’s strategy.
