Dozens of Canadian cultural sector organizations have united in a call to Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming platforms like Netflix toward Canadian content. The government’s proposal to replace the existing 15% tax on major streamers’ Canadian revenue with government funding has faced opposition from these groups, who argue that government funding alone is not an adequate substitute.

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 commitment to providing annual funding, which could be subject to changes in federal budget allocations. The letter emphasizes the importance of a regulated contribution framework over discretionary funding, citing the former’s durability and legal enforceability.

The Canadian Radio-television and Telecommunications Commission (CRTC) had previously increased the contribution requirements for large streaming services to 15%. However, in June, the government announced plans to replace this with direct annual funding, a move that has sparked uncertainty within the production sector, according to the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.

The letter stresses the significance of maintaining the 15% contribution requirement as a benchmark for the regulatory framework, asserting that it should not be weakened by altering the base contribution mechanism. Despite the government’s shift in policy direction on streaming regulations following pressure from the United States, the U.S. trade representative has indicated that Canada may not receive significant credit for this change.

In light of these developments, industry stakeholders are urging the government to reconsider its approach and uphold the existing contribution obligations to support the Canadian cultural sector effectively.