Ottawa's $500M Netflix deal draws reaction from incumbents

Janie Parker
September 30, 2017

Ottawa had been under pressure by Canadian broadcasters to impose a tax on Netflix, akin to fees paid by broad casters, that could be used to fund Canadian programming. It will establish a permanent production presence in Canada, the first time it has done so outside of the United States. The minister said the pledge was the biggest investment in Canadian content from a foreign company in the last 30 years.

The $500 million in original productions in Canada over the next five years would be through the newly created Netflix Canada production company (not to be confused with Netflix Canada the service).

The streaming company reportedly spent years lobbying Canada's government to avoid the regulations and taxes on conventional Canadian broadcasters.

"The Government of Canada is committed to growing our creative industries with new investments that create opportunities for creators and producers across the country to make great content that stands out", added Joly.

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Joly announced that $125 million has been earmarked over five years to support a creative export strategy that includes the new Creative Export Fund, which will be launched in 2018 with the aim of helping cultural producers increase their presence outside the country.

"Fans around the world are already falling in love with Netflix originals produced in Canada", said Ted Sarandos, Netflix's Chief Content Officer.

In regards to the Netflix deal, the streaming platform will indeed continue to operate free from paying tax or charging Canadian viewers any sort of streaming tax. The deal is reported to be worth $400.8 million, (C$500 million). Netflix Canada will collaborate with other Canadian production firms, broadcasters, and local talent to develop content in both English and French.

Netflix has invested in Canadian originals shows such as mockumentary Trailer Park Boys, which it revived after Showcase dropped it; Discovery Channel's Frontier; Showcase copro Travelers; and CBC's Anne and Alias Grace. The sharing of Canadian content will allow Canadian culture to reach all corners of the world.

Other reports by TheDailyFarc

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