Cultural industry groups say they are growing increasingly concerned over the federal government’s silence on $600 million in promised funding for Canadian content production, warning the delay is creating the very uncertainty the money was meant to resolve.
“Funding that was supposed to reduce uncertainty is actually now leading to greater uncertainty, because we don’t know when it’s going to materialize,” said Reynolds Mastin, president and CEO of the Canadian Media Producers Association. He said it is critical the funding be delivered as soon as possible.
From Streamer Levies to Direct Funding
The Liberal government introduced the Online Streaming Act in 2023 to bring streaming companies into a system that already required cable companies and broadcasters to contribute to or broadcast Canadian content, as funding from traditional players has declined with the shift to streaming.
In 2024, the CRTC ordered large streaming companies such as Netflix to pay five per cent of their annual Canadian revenues into funds supporting Canadian content, including local TV news. That requirement was raised to 15 per cent in May.
In June, the federal government reversed course, directing the CRTC to review its decision to regulate online streamers and saying it would instead provide funding directly to Canadian content producers. The streamers’ financial contributions had already been on hold amid an ongoing court challenge. The government pointed to affordability for consumers as the main reason for the shift, while Culture Minister Marc Miller said at the time the industry was suffering because funding had been frozen by litigation.
Four months later, the government has not said when it will issue new direction to the CRTC or release the $600 million, leaving the sector without either the streamer payments or the promised government funding.
Industry Calls Situation Urgent
Hélène Messier, president and CEO of the Association québécoise de la production médiatique, said the government itself described the situation as urgent back in June. “And it is urgent. The situation in the audiovisual industry is very bad,” she said, pointing to a significant decrease in production volume in recent years. “We want to know where we stand.”
Canadian content rules for streamers also became a point of contention in trade talks with the United States over the summer. Messier said Prime Minister Mark Carney cited the importance of culture and the French language as one reason the negotiations with the Americans ended. “So now I think they have to act accordingly. If it is important, then do something,” she said.
It remains unclear exactly what was at issue in those talks. Carney pointed to the visibility of Canadian content on streaming services, while U.S. Trade Representative Jamieson Greer has said the American concern centres on streaming companies being required to make financial contributions toward Canadian content. The Online Streaming Act requires streamers to ensure “discoverability” of Canadian programs, including French-language content.
A spokesperson for the culture minister declined to say when the new policy direction and the $600 million would be released, and did not say whether the new direction to the CRTC is being held back pending a trade agreement with the United States.
Producers Say Delays Are Costly
Mastin said he receives near-daily calls from producers asking about the status of the funding. “A number of shows were waiting for that funding to materialize months ago, and they’re still waiting,” he said.
Messier said the delay will make it harder to spend the money within the current fiscal year. “You cannot do a production tomorrow morning. It’s a long process to be able to spend the money wisely,” she said.
Mastin added that productions require months of planning between approval and the start of filming, including securing studio space, locations and cast. “The longer the delay, the longer it is before new shows actually get produced, let alone make it onto screens in Canada and around the world,” he said.
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