A coalition of Canadian cultural sector groups is urging Prime Minister Mark Carney to retain regulations mandating financial contributions from foreign streaming platforms like Netflix to support Canadian content creation. The government’s proposal to substitute the 15 per cent revenue tax on major streamers with direct government funding is being opposed by these organizations, arguing that it lacks the permanence and enforceability of a CRTC-regulated contribution system. In a joint letter signed by 50 entities, they express concerns that the government’s annual funding commitment, while appreciated, is vulnerable to changes in federal budgets and external political influences.
The signatories of the letter encompass various industry bodies such as the Canadian Media Producers Association, unions representing Canadian performers and filmmakers, and multiple film festivals. Following the Canadian Radio-television and Telecommunications Commission’s decision to raise the contribution rate for major streaming services to 15 per cent, the government announced a shift in policy direction in June towards direct funding for the sector.
Subsequently, a court filing by the government indicated its intention to remove the financial obligation for streamers altogether, causing uncertainty within the production sector, as highlighted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.
The letter emphasizes the importance of maintaining the 15 per cent contribution benchmark as a fair and reasonable requirement in the regulatory framework. Despite the change in approach by Ottawa, prompted by pressure from the U.S., the United States trade representative has indicated that Canada’s action may not receive significant recognition in trade discussions.
Tag: rewrite-pending