The Canadian Government Is Teaming Up With Netflix - Here's Why

Tomas Mccoy
September 30, 2017

This is reportedly the first time the streaming company has ever developed a permanent production presence outside of the U.S. Netflix Canada will collaborate with other Canadian production firms, broadcasters, and local talent to develop content in both English and French. Quebecor, Bell and Rogers were quick to point out their Canadian content budgets far exceed the annualized $100-million figure, which represents less than two per cent of Netflix's overall US$6-billion original programming budget for 2017 alone. It explained that, during the consultation, "many Canadian stakeholders asked about how new players can contribute to Canadian content".

The Canadian government is pledging not to tax television streaming services as Netflix creates a Canadian division and commits to a minimum investment in the country.

The Canadian performers' union welcomed the Netflix deal but noted the company has not had to abide by the same regulatory rules as Canadian broadcasters. Overall, though, the plan plots a course that aims to rework many of Canada's laws and regulations that oversee broadcasting, telecommunications and copyright, as well as the private and publicly supported funds that back musicians, writers and publishers in the coming months.

Joly cited already high rates paid by Canadians for broadband Internet access in her decision not to add a new tax on streaming services.

The reboot to the plan also includes updated and increased funding for the Canadian Media Fund and the CBC and $125 million to be spent on a "creative export strategy" which would work to get Canadian creators recognition on the world stage.

It has yet to be revealed if the deal will entail a Canadian office and whether it will affect the tax status for the service in Canada.

Government officials want to encourage, promote and showcase content that's ideated and produced in Canada while broadcasting it to the world.

Netflix's investment will not only help television shows and film productions, but various music producers and digital content as well.

"This is a welcome first step", she said of the Facebook collaboration.

Other reports by VideoGamingPros

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