Dozens of Canadian cultural organizations are urging Prime Minister Mark Carney to retain regulations that mandate foreign streaming services like Netflix to financially support Canadian content. The government’s plan to replace the 15% tax on major streamers’ Canadian revenue with government funding is being contested by these groups, who argue that it is not an adequate substitute.

In a joint letter signed by 50 organizations, including the Canadian Media Producers Association and various unions representing Canadian artists and filmmakers, concerns were raised about the government’s proposed annual funding, which they believe lacks the stability and enforceability of a CRTC-regulated contribution system. The letter emphasizes that while the government’s $600 million yearly commitment is appreciated, it is not a reliable alternative to a regulated contribution framework, which is not subject to the same budgetary and political fluctuations.

Following the Canadian Radio-television and Telecommunications Commission’s decision to increase contribution requirements for large streaming platforms to 15%, the government announced in June its intention to provide direct annual funding to the industry, effectively eliminating the financial contribution mandate for streamers. This move has created uncertainty within the production sector, as stated in the letter addressed to both Prime Minister Carney and Culture Minister Marc Miller.

Despite the shift in streaming regulations prompted by pressure from the U.S., the signatories maintain that the 15% contribution benchmark should be preserved in any new regulatory framework to ensure fairness and proportionality. The United States trade representative has indicated that Canada’s decision to end the tax on large streamers will not be acknowledged as a positive concession in trade discussions.