Canada’s CMPA and festivals urge streamer levy action

The Canadian Media Producers Association (CMPA) is among more than 50 signatories to a letter calling on the country’s government to reverse plans that would see its streamer levy being scrapped.

Canada’s cultural secretary Marc Miller revealed earlier this summer that a planned 15% tax on local revenue from streamers such as Netflix, Prime Video, Paramount+ and Disney+ would be dropped and replaced by an annual C$600m (£320m) government funding pledge.

The abrupt U-turn came a month after regulator the Canadian Radio-television and Telecommunications Commission (CRTC) unveiled the 15% requirement, which was a tripling of the previous benchmark of 5%.

The CRTC said the move, which was to be incorporated into the Online Streaming Act that was first introduced in 2024, would have raised $2bn to support the sector.

C$600m ‘no substitute for obligations’

The letter - which was also signed by the Directors Guild of Canada, the Writers Guild of Canada and numerous event organisers including Hot Docs and the Calgary International Film Festival - called on MIller and Canadian prime minister Mark Carney to retain the levy.

“The government’s $600 million-per-year pledge, though appreciated and welcome, is not a substitute for durable, legally enforceable contribution obligations,” the letter read.

It also noted that a regulated contribution form streamers was less likely to be affected in coming years than annual funding from government. The letter went on: “Discretionary funding is subject to budget and external political pressures; a regulated contribution framework is not.”

The letter added that “significant uncertainty” had been introduced into the Canadian production sector as a result of the shift in strategy as urged the government “to preserve the principle that foreign streaming services must make meaningful, predictable and enforceable contributions to Canadian programming.”

It added that the 15% levy on local revenues “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.”

Carney previously described the change in approach as “another step to reinforce affordability” for Canadians, who he said would be forced to pay more for subscriptions if the levy had been increased.

However, the issue had also become politicised by the US, which said the tax had become an “irritant” to broader trade discussions. Miller previously admitted that the Online Streaming Act had been “identified… as a trade issue” but said it would be “disingenuous” to suggest it was the only factor.