A coalition of Canadian cultural organizations is urging Prime Minister Mark Carney to maintain regulations that require foreign streaming platforms, such as Netflix, to financially support Canadian content. The government had proposed replacing the 15% tax on these platforms with direct government funding, but the organizations argue that this approach lacks the same level of commitment.

In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and various industry unions, they express concerns that the proposed annual funding could be altered in the future through federal budget decisions, unlike a regulated contribution system overseen by the CRTC.

The letter emphasizes that while the government’s $600 million annual commitment is appreciated, it is not a sufficient substitute for a stable and enforceable contribution obligation. The signatories stress that discretionary funding is susceptible to budgetary and political pressures, whereas a regulated contribution framework provides greater certainty and consistency.

Following the CRTC’s decision to increase contributions from large streaming services to 15%, the government initially indicated a shift towards direct funding for the industry instead of financial contributions. However, a subsequent court document revealed the intention to “eliminate” the financial contribution requirement altogether, causing uncertainty in the production sector.

The letter, also directed to Culture Minister Marc Miller, underscores the importance of maintaining the 15% contribution threshold as a fair and reasonable benchmark for the regulatory framework. Despite the government’s change in direction reportedly influenced by U.S. trade concerns, the United States trade representative has indicated that this move may not be recognized as a positive gesture in trade discussions.