Cultural sector urges Carney not to scrap streamers’ Cancon financial contributions

OTTAWA – 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 has promised to replace the 15-per-cent contributions 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 CRTC increased the required contributions from large streaming services to 15 per cent of their Canadian revenues, the government said in June it would issue a new policy directive to the CRTC 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, which was also addressed to Culture Minister Marc Miller, says the government’s June announcement “introduced significant uncertainty into the production sector.”

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.” 

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

A spokesperson for the culture minister said in an emailed statement the government will “always ensure Canadians can continue to see themselves reflected on screen, hear Canadian voices, and celebrate what makes this country unique.”

The statement added that, as “announced in June, we are developing a new policy direction and will have more to share in due course.”

In a July 17 court document, the government said it would publish a new policy directive to the CRTC in the coming weeks.

In 2024, the CRTC made an initial order under the Online Streaming Act requiring large streaming companies to pay five per cent of their annual Canadian revenues to funds devoted to producing Canadian content, including local TV news.

The Federal Court of Appeal put a pause on the payments, which are estimated at roughly $1.25 million annually per company.

In May, the CRTC increased the requirement to 15 per cent of streamers’ Canadian revenues.

Under the Broadcasting Act, the government does not have the authority to overturn the decision setting out the 15 per cent requirement. It must instead direct the CRTC on how to broadly implement the Online Streaming Act.

The cultural organizations said in their letter Thursday the CRTC-mandated contributions “are not a tax or a levy.”

“They are investments in the acquisition and production of globally exploitable assets for foreign streaming services, showcasing Canadian stories and talent while strengthening the domestic production ecosystem,” they said.

“Foreign streaming services are well positioned to monetize these assets and have every incentive to do so.” 

This report by The Canadian Press was first published Aug. 13, 2026.