I wouldn't know about "hits" as I rarely hear or see them (if a radio station plays "hits", I don't listen to it). I listen to the music I like and watch the movies I like, I have not liked a hit song in longer than I can remember. The last hit movie I liked was LOTR, and I was a fan of the books long before they were popular. I could go on, but the point is, if you want to have an independent culture you need to be willing to not be part of "pop" culture. If Canadians want to be part of "pop" culture, why should their government prevent them from doing so?
Apparently, you fail to understand that if the USA can buy and sell Canada, then this law is an exercise in futility because it has been bought by the USA. I could go on, but I will conclude by saying that government subsidies of culture fail to actually preserve said culture. If Canadians are not interested enough in preserving their own culture without a law forcing them to do so, that culture is doomed anyway.