Mark Carney faces pressure to keep Netflix, foreign streamers paying for Canadian content

Dozens of Canadian cultural organisations are urging Prime Minister Mark Carney not to scrap rules requiring foreign streaming services such as Netflix to financially support Canadian content.

A letter signed by 50 organisations argues that Ottawa's proposed $600 million in annual government funding cannot replace mandatory contributions regulated by the CRTC.

“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 groups said.

Signatories include the Canadian Media Producers Association, unions representing Canadian actors, writers and directors, and several film festivals.

The CRTC increased required contributions from large streaming services to 15 percent.

However, the federal government announced in June that it planned to issue a new policy directive and instead directly fund the industry.

Ottawa later said in court documents that it would “eliminate” the financial contribution requirement for streamers.

The groups said the announcement “introduced significant uncertainty into the production sector” and called for the 15-per-cent contribution level to remain.

Ottawa changed course after the United States identified Canada's streaming legislation as a trade irritant.