Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to maintain regulations that require foreign streaming platforms like Netflix to contribute financially to Canadian content. The government had proposed replacing the current 15% tax on Canadian revenue from large streamers with direct government funding, but the organizations argue that this would not be an adequate substitute.

In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and various unions representing Canadian actors, writers, and directors, concerns were raised about the government’s plan to rely on discretionary funding, which could be subject to budget constraints and external influences. The signatories emphasized that a regulated contribution framework, unlike discretionary funding, would provide a more stable and enforceable mechanism for supporting Canadian content.

Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contributions from large streaming services to 15%, the government announced its intention to replace the financial contribution requirement with direct annual funding. This move has caused uncertainty within the production sector, as highlighted in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.

Despite the government’s shift in policy, maintaining the 15% contribution threshold was emphasized as crucial for ensuring a fair and proportionate regulatory framework. The letter also mentions that the decision to roll back the contribution requirement was influenced by external factors, particularly trade concerns raised by the United States.

In response to inquiries about the decision to eliminate the contribution requirement, Prime Minister Mark Carney emphasized that the focus was on affordability and that the decision had been made two months prior. The letter concludes by stressing the importance of maintaining the 15% contribution benchmark to uphold the integrity of the regulatory framework supporting Canadian content.