As Donald Trump’s fight with Canada over tariffs escalates into a full-blown trade war, content spending by major Hollywood studios in the country hangs in the balance.
Under rules set up in Canada, U.S. digital giants — think: Netflix, HBO Max, Disney+ and more — are required to spend a certain amount of money on what’s deemed local content, as in films and shows meant for Canadian audiences. U.S. producers have held up this plan, titled the Online Streaming Act, by appealing the legislation in the courts, and the Trump administration has swept up the issue into their much broader trade fight with its northern neighbor.
Now, local Canadian producers are urging the government to bring back those plans to force American companies to help subsidize domestic film and TV production. Lawmakers in Canada, in an effort to be diplomatic, had rescinded that Online Streaming Act to get more favorable terms on a possible cross-border trade and tariffs deal. It didn’t work out. So the knives are coming out from some producers for restoring plans to draw subsidies from U.S. companies.
“Last night, the federal government stood up for Canada by refusing to agree to an inequitable trade deal. We look forward to working with the government to ensure that, whatever happens next, the Online Streaming Act, a key pillar of Canadian cultural and digital sovereignty, is defended,” Reynolds Mastin, president and CEO of the Canadian Media Producers Association, representing indie producers, said after Canadian prime minister Mark Carney broke off crunch talks late Friday.
