Canadian streaming content funding policy dispute

The Canadian government announced plans to eliminate mandatory Canadian content (CanCon) financial contributions from large U.S. streaming services, such as Netflix and Amazon. This replaces a CRTC regulation that had increased contribution rates from 5% to 15%, a move projected to generate approximately $2 billion annually. In lieu of these regulated payments, the government proposed providing $600 million in annual funding to support Canadian producers and broadcasters.

The policy shift follows pressure from the United States, which characterized the original Online Streaming Act as a “trade irritant.”

In response, dozens of Canadian cultural organizations, including unions for actors and writers and the Canadian Media Producers Association, have urged the government to maintain the mandatory contribution regime. In a letter signed by 50 groups, the sector argued that the proposed $600 million in direct government funding is not a sufficient substitute for regulated contributions. They expressed concern that discretionary government funding is subject to political pressure and budget changes, whereas the CRTC-regulated framework provides “durable, legally enforceable obligations.”