Deadline has reported that Canada has increased duties on US multinational streamers to support crucial local programming. While widely praised, local guilds have expressed skepticism about whether the new legislation will benefit the Canadian film ecosystem. In what is being called the “Netflix Tax,” US corporations will see a 10 percent increase, and Canadian-based outlets will see a five percent increase. US streamers will have to pay 15 percent of Canadian-based revenues.

The Writers Guild of Canada praised the decision by Canadian Radio-television and Telecommunications as a significant step forward in legislation that has been two years in the making. Although screenwriters have expressed hesitancy about the CRTC ending a program that had previously subsidized dramas, documentaries, and youth programming.

Bruce Smith, President of the WGC, released a statement on behalf of the union, “Drama, kids’ shows, animation, and documentaries are fundamentally at-risk genres of Canadian programming. When we talk about the need to support Canadian content and Canadian voices, it is the vulnerability of these genres in particular that is at the root of the discussion,” via Deadline.

The Directors Guild added, “The market alone will not reliably protect Canadian storytelling without clear and measurable rules. This framework contains spending requirements, but very few direct obligations tied to original Canadian storytelling itself. Without those protections, there is a real risk that investment shifts away from original Canadian drama and documentaries and towards safer, lower-cost, or internationally optimized content that does little to sustain Canadian creative voices, key Canadian creators or long-term domestic production capacity,” Alistair Hepburn, national executive director of the DGC, said in a statement.” Via Deadline.

Lastly, the actors’ union stated, “While yesterday’s announcement contains encouraging language about supporting Canadian and Indigenous production, performers cannot build a future on aspirations alone. The test is whether these proclamations will lead to meaningful, enforceable investment in Canadian culture. ACTRA needs to see clear rules, accountability, and measurable outcomes, while also asking why Canadian broadcasters will pay less into investment while billion-dollar foreign streamers will only see a modest increase,” via Deadline.

 The Canadian Media Producers Association, the representative for indie film and TV producers, remains cautious: “We are reviewing the decisions in detail, and will work to ensure that they enable Canadian independent producers to continue to make a significant contribution to the production of Canadian programs,” via Deadline.

The Motion Pictures Association, the body that negotiates on behalf of American Studios, has stated that the ruling breaches North American trade agreements between the US, Canada, and Mexico. The duties come at a time when Canada appears to be distancing itself from the US as a trade partner. Reports about the possibility of Canada joining the European Union have circulated on the internet and in media outlets. The possibility remains that the “Netflix Tax” could operate like a tariff, and US streamers could pass the expense onto consumers by raising prices in Canada. President Donald Trump had previously suggested imposing a tariff on foreign media, which was widely criticized by the media industry.