Cultural sector urges Carney to keep tax on large streamers to fund Canadian content


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Dozens of Canadian cultural sector organizations are calling on Prime Minister Mark Carney not to scrap rules requiring foreign streaming companies like Netflix to make financial contributions toward Canadian content.

The government promised to replace the 15 per cent tax on large streamers’ Canadian revenue with government funding, but the groups say that is no substitute.

A letter to Carney signed by 50 organizations says the promised annual funding, unlike a CRTC-regulated contribution regime, can be changed through the federal budget.

“The government’s $600 million-per-year pledge, though appreciated and welcome, is not a substitute for durable, legally enforceable contribution obligations. Discretionary funding is subject to budget and external political pressures; a regulated contribution framework is not,” the letter says.

The signatories include the Canadian Media Producers Association, which represents independent producers, and unions representing Canadian actors, writers and directors, as well as several film festivals.

After the Canadian Radio-television and Telecommunications Commission (CRTC) increased contributions for large streaming services to 15 per cent, the government said in June it would issue a new policy directive and instead provide the industry with direct annual funding.

The government later said in a court document it would “eliminate” the financial contribution requirement for streamers.

The letter, also addressed to Culture Minister Marc Miller, says the government’s June announcement “introduced significant uncertainty into the production sector.”

WATCH | Carney on the ‘Netflix tax’ changes:

Carney says decision to roll back Cancon tax is about affordability

Asked how Canadians should interpret Ottawa’s plan to end a tax on large streamers to fund Canadian content, Prime Minister Mark Carney said ‘we made that decision with a focus on affordability right out of the gate’ and that the decision had been made ‘two months ago.’

The letter says the 15 per cent contribution requirement “remains an appropriate benchmark for the resulting regulatory framework and should not be diminished through the replacement of the base contribution mechanism. Maintaining this threshold is fair and proportionate.”

While Ottawa changed course on the streaming rules after the U.S. identified the enabling legislation as a trade irritant, the United States trade representative has said Canada wouldn’t “really get credit” for the move.



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