What you need to know about the Liberal government’s new cultural roadmap
OTTAWA — The federal government laid out its strategy Thursday to support Canada’s creative industries.
Here’s what you should know about the plan.
— No Netflix tax. Heritage Minister Melanie Joly said the Liberals are sticking to their pledge of not introducing new taxes to pay for Canadian content, either streamed or over-the-airwaves. Netflix does, however, play a big part in the plan. Joly announced the video-streaming giant will spend $500 million over five years for the creation of original content produced in Canada. It’s unclear how the money will be spent and what the government agreed to in brokering the deal. The agreement falls under the Investment Act, which means Netflix could face penalties if it doesn’t live up to its end of the bargain.
— The Canadian Media Fund gets a boost. The CMF is a pot of money to support the production of Canadian content. Canada’s traditional broadcasters and TV service providers are mandated by law to contribute to the fund, based on a formula tied to their revenues. But declining advertising and subscription dollars have put pressure on the fund. Heritage Minister Melanie Joly says Ottawa will contribute more starting next year to make up for the industry shortfall.