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CBC wants Netflix tax to fund its Canadian content

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DH Vancouver Staff Jul 08, 2014 11:10 am

The Canadian Broadcasting Corporation (CBC) wants the Canadian Radio and Television Comission (CRTC) to require ‘over-the-top’ streaming services like Netflix to subsidize the production of domestic programming.

The CBC is not the only entity requesting this tax for foreign content companies.

In January, the Canadian Media Production Association (CMPA) spoke to the Standing Senate Committee on Transport and Communications to discuss the issue and examine a study on the challenges faced by the CBC in relation to the changing environment of broadcasting and communications.

They argued that foreign based content companies like Netflix take millions of dollars out of Canada every month, which has the CMPA desiring to force these companies to put some of their profits back into the country to foster Canadian content.

With Netflix specifically, the CMPA estimates the company’s Canadian revenues are upwards of $600 million per year. Canadians encompass about 6 million of the company’s 50 million global subscribers.

Netflix believes it should not have to pay a tax because it would force them to raise their Canadian prices with no consumer benefits. The previous ruling by the CRTC has also ruled that such streaming services should be exempt from CanCon rules.

Public hearings are set to begin in September to discuss the matter.

 

Feature image by Twin Design via Shutterstock


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DH Vancouver Staff
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