Ottawa silent on $600 million in promised Canadian content funding as sector falters
Four months after federal government pledged direct funding to producers instead of regulating streamers, no timeline or disbursement plan announced. Production volumes declining.
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Canada's cultural sector is growing anxious. Four months after the federal government announced it would provide $600 million directly to Canadian content producers instead of requiring streaming companies to pay, Ottawa has not specified when it will deliver the money or when it will give new direction to the CRTC.
Reynolds Mastin, president and CEO of the Canadian Media Producers Association, said the delay is creating the opposite of what was promised. "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," Mastin said. "It's critical that it be delivered as soon as possible."
The Online Streaming Act, introduced in 2023, was meant to require streaming platforms—including Netflix—to contribute to Canadian content as traditional broadcasters and cable companies do. The CRTC initially ordered large streamers to pay 5% of annual Canadian revenues in 2024, then increased that requirement to 15% in May 2024.
But in June 2024, the federal government changed course, instructing the CRTC to review the decision and announcing it would fund producers directly instead—partly citing consumer affordability concerns. Meanwhile, streaming company payments are frozen due to ongoing court challenges.
Hélène Messier, president and CEO of the Association québécoise de la production médiatique, said the situation is urgent. "The situation in the audiovisual sector is very serious," she said, noting significant declines in production volume in recent years. "We want to know where we stand."
The issue became a friction point in trade negotiations with the United States. Messier cited Prime Minister Mark Carney's position: "[He] said that culture and the French language were so important that they were one of the reasons they ended negotiations with the Americans. I therefore think they must now act accordingly. If it's important, then you have to act."
When will Ottawa disburse the $600 million and to whom?
What conditions will apply to the funding?
We'll update this story as answers emerge.
By the numbers
How much direct funding did the federal government promise to Canadian content producers?
$600 million in direct funding was pledged to Canadian content producers instead of requiring streaming companies to pay.
When did the federal government announce the shift to direct producer funding?
The federal government announced the funding plan in June 2024, after instructing the CRTC to review its streaming payment requirements.
