Several top Canadian film and television organizations, including the Canadian Media Producers Association (CMPA), have sent an open letter to the federal government emphasizing the “significant uncertainty” that the government’s Online Streaming Act has brought to the industry. The issue involves several international streaming giants.
In June of this year, the Canadian Heritage Department directed the Canadian Radio-television and Telecommunications Commission (CRTC) to review its policy regarding the Online Streaming Act (or C-11 Act) from May. The original plan of the act aimed to increase the contribution of foreign streaming giants like Netflix and Amazon to the production and promotion of Canadian content from 5% to 15%.
When the Heritage Department shifted its policy in June, it mentioned that the costs brought by the C-11 Act could ultimately be passed on to Canadian consumers through higher prices.
In fact, the U.S. government has repeatedly included the Online Streaming Act as a major point of contention in Canada-U.S. trade relations. Amazon, Apple, and Spotify have filed lawsuits in the Canadian federal court in an attempt to block the implementation of the act.
Canadian Heritage Minister Marc Miller stated that Ottawa will no longer enforce contribution requirements for streaming platforms but will allocate $600 million annually to the film and television industry, including local news and specialty broadcasting companies.
However, the start date for disbursing this funding and to which institutions it will be allocated remains undisclosed.
According to reports by The Globe and Mail, Miller mentioned during an interview in June that the government will continue to push for a certain portion of domestic revenue from streaming platforms to be used for Canadian program productions. However, the specific numbers have yet to be made public.
The open letter sent to Prime Minister Trudeau and Minister Miller on Thursday by over 40 cultural organizations nationwide stated that the contributions outlined by the CRTC are investments in producing Canadian stories, which can be distributed worldwide through platforms like Disney+ and Paramount+.
CMPA President and CEO Reynolds Mastin stated that in order to have a healthy, sustainable market, certain fundamental Canadian rules that everyone must abide by need to be established.
“We’re talking about commissioning Canadian series and airing them on these streaming platforms. These platforms will make every effort to be profitable, promote these series, and ensure their success like any other series. This could lead to a win-win situation,” Mastin said.
The open letter argued that the government’s $600 million annual commitment cannot replace the streaming platforms’ “long-lasting, legally binding contribution obligations.” Moreover, government funding will be subject to “budget pressures, political changes, and administrative discretion.”
Mastin warned that as these streaming platforms become increasingly dominant in the Canadian market, without some basic rules, they may one day become the sole arbiters deciding whether Canadians have access to Canadian stories.
“If we allow this to happen, it’s akin to handing over a significant part of Canadian culture to foreign decision-makers, thereby relinquishing national sovereignty in the process,” Mastin added.