Canada Backs Off Plan to Force Netflix, Disney to Spend More (1)

Prime Minister Mark Carney’s government signaled it will back down from a measure to force entertainment companies such as Netflix Inc. to make larger financial contributions to Canadian film and television productions.

Last month, Canada’s broadcasting regulator announced new rules requiring companies that own large streaming services, including Netflix and Walt Disney Co., to spend 15% of their annual Canadian revenue on local content, up from 5%.

But the proposal is opposed by US officials and by Hollywood studios, and Carney’s government has ordered the regulator to review it. The move comes at a moment of elevated tension ...