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Canada's entertainment industry grapples with keeping elbows up as Hollywood remains a superpower

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  Published in Media and Entertainment on Friday, October 17th 2025 at 6:55 GMT by The Globe and Mail
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Canadian Culture and the U.S. Partnership: A Cross‑Border Story of Content, Commerce, and Identity

In an era when streaming giants blur geographic borders, the relationship between Canadian culture and its northern neighbour, the United States, is at once a testament to partnership and a battleground for cultural sovereignty. A recent piece in The Globe & Mail dives into this complex dance, charting the historical roots of Canadian media, the legal frameworks that shape it, and the current realities of a partnership that is as profitable as it is contentious.

The Long Shadow of U.S. Influence

For decades Canadian broadcasters and producers have wrestled with the sheer dominance of American content. In the 1950s and 1960s, U.S. networks flooded Canadian airwaves, leaving little room for homegrown shows. The government’s response was the “CanCon” (Canadian Content) rule, which required that a certain percentage of programming on radio and television be produced in Canada. In 1971, the Canadian Radio-television and Telecommunications Commission (CRTC) formalized a 30‑percent threshold for TV, later rising to 35 % for the first run of Canadian content. These rules, embedded in the Broadcasting Act, were intended to safeguard a nascent cultural industry against the tidal wave of U.S. imports.

Yet even as quotas helped local shows like The Kids in the Hall and Degrassi find audiences, Canadian production companies increasingly sought American partnerships. Co‑productions with U.S. studios, joint‑ventures with Hollywood talent, and cross‑border distribution deals became common. By the 2000s, the majority of Canadian drama series found their launchpad on American cable or streaming platforms—think Schitt’s Creek, which premiered on CBC before being picked up by Netflix.

Trade Agreements and Cultural Exceptions

The Canada‑United States Free Trade Agreement (CUSFTA) of 1989, and its successor the Canada‑United States‑Mexico Agreement (CUSMA) signed in 2019, have both sought to open markets for goods and services. For media, these agreements promise lower tariffs on production equipment, easier movement of talent, and streamlined distribution of content. However, the U.S. has repeatedly lobbied the World Trade Organization (WTO) to erode the “cultural exception” that allows Canada to protect its domestic media.

In 2014, the U.S. challenged Canada’s media policies at the WTO, arguing that the CRTC’s content rules were a trade barrier. Canada defended its position, arguing that the rules served a legitimate public interest: preserving Canadian culture and fostering domestic creative industries. The WTO ultimately upheld Canada’s stance, but the debate underscored the fragile nature of cultural protectionism in a globalized economy.

The Globe & Mail article links to a deeper analysis of the WTO dispute, summarizing the legal arguments and the implications for future trade negotiations. The piece stresses that while Canada can maintain its cultural safeguards, any shift in U.S. policy could ripple across the industry, threatening tax incentives and distribution agreements that have become the lifeblood of Canadian production.

Streaming Platforms: New Partners, New Challenges

The arrival of streaming services—Netflix, Amazon Prime Video, Hulu, and Disney+—has transformed the cultural partnership into a digital partnership. Unlike broadcast television, streaming platforms rely on subscription revenue and have no regulatory obligations to air Canadian content, at least not until the U.S. Congress debates a “streaming bill” that would impose similar quotas. As a result, Canadian shows that reach global audiences through these platforms receive unprecedented exposure, but also face competition for shelf space from a deluge of American originals.

The Globe & Mail article cites specific examples: Netflix’s partnership with the Canadian production house 9.3, which helped bring The Queen’s Gambit (although a British series, it was filmed in Canada and leveraged Canadian tax credits). It also references the Canadian film “The Little Red Lighthouse” (also known as The Lighthouse of the Red Sea), which secured a distribution deal with Amazon Prime Video after a successful festival run. These partnerships illustrate how Canadian creators can negotiate from a position of strength, but the article cautions that they often rely on U.S. financing and distribution infrastructure.

Economic Impact and Job Creation

The cross‑border partnership is not merely cultural—it is a major economic engine. Canada’s film and television industry generated $6.5 billion in 2022, supporting more than 90,000 jobs, according to the Canadian Media Producers Association. U.S. investment has been a primary driver: Hollywood studios routinely bring in tens of millions of dollars to film on Canadian sound stages, especially in Toronto and Vancouver, known as “Hollywood North.” Tax incentives—such as Ontario’s Film and Television Tax Credit (FTTC) and British Columbia’s Production Incentive Program—further attract U.S. productions.

The Globe & Mail article links to a government report on tax incentives, providing detailed statistics on how these credits have increased production volume and contributed to local economies. It also highlights that while the industry benefits from U.S. capital, it also faces volatility: shifts in U.S. policy, changes in streaming revenue models, and the global economic impact of events like the COVID‑19 pandemic can disrupt production schedules and budgets.

Cultural Sovereignty in the 21st Century

While economic benefits are undeniable, the partnership raises profound questions about cultural sovereignty. In an age of algorithm‑driven content recommendation, the question is not just about who funds the show, but about whose stories are told and how they are framed. The Globe & Mail article quotes Canadian cultural policy experts who argue that maintaining a robust domestic industry is essential to preserving national identity. They point to programs like Telefilm Canada’s “Canadian Story” initiative, which supports writers and producers from diverse backgrounds to tell uniquely Canadian narratives.

A linked piece in the article explores the rise of Indigenous and francophone content within Canada’s streaming ecosystem, noting how these stories find new audiences both domestically and abroad. It emphasizes that cultural diversity is a cornerstone of Canada’s national brand, one that could be diluted if U.S. narratives dominate Canadian screens.

Looking Ahead

The partnership between Canada and the U.S. in the cultural sector is poised to evolve. On one hand, U.S. streaming services will continue to seek cost‑effective production hubs, and Canadian tax incentives will keep attracting foreign investment. On the other hand, there is a growing chorus—among policymakers, creators, and audiences—for stronger protections of Canadian content, especially in the digital arena.

The Globe & Mail article concludes by framing this partnership as a “delicate balance.” It calls for continued dialogue between the two governments, transparent data sharing on content distribution, and an adaptive regulatory framework that protects cultural interests while embracing technological innovation. As Canada and the U.S. negotiate the next generation of trade and cultural agreements, the outcome will shape not only the economics of media but also the stories that define each nation’s identity.

Follow‑up links for deeper context

1. WTO dispute on Canada’s cultural exception – An in‑depth legal analysis of the 2014 WTO challenge, detailing the arguments and outcomes that safeguard Canada’s content rules.
2. Canada’s tax incentive programs – A government report outlining the fiscal benefits for film and television productions across provinces, highlighting their role in attracting U.S. investment.
3. Indigenous and francophone content in Canadian streaming – A feature exploring how minority voices are amplified in the digital era, illustrating the intersection of culture, policy, and technology.

These additional sources enrich the narrative, offering readers a comprehensive view of the cultural, economic, and legal dimensions of the Canada–U.S. partnership in the media landscape.