(Gatineau) Streaming platform giant Netflix says the Canadian Radio-television and Telecommunications Commission (CRTC) should recognize the role it already plays in funding the Canadian broadcast industry and reject calls aimed at demanding additional payment from the company.
But if the federal regulator were to require foreign broadcasters to contribute financially to the Canadian content system, it says that burden should not exceed 2% of annual revenues, as in other jurisdictions.
Netflix appeared Thursday at a hearing as part of the CRTC’s public consultations in response to the Online Streaming Act, which received royal assent in April.
The legislation, formerly known as Bill C-11, aims to update federal law to require digital platforms to contribute to and promote Canadian content.
The watchdog is exploring the possibility of requiring broadcasters to make an upfront contribution to the Canadian content system to help level the playing field for local companies, which are already required to support Canadian content.
Netflix’s director of public policy in Canada, Stéphane Cardin, told the commission that the platform already invests directly in Canadian content by financing local productions, and that an additional levy could “result in the displacement of certain investments.”
“What we currently spend on partnerships for the career advancement of Canadian creators is a significant commitment,” Cardin told panelists, adding that Netflix’s total spending on these deals exceeds $30 million.
“We spend more on this activity in Canada than any other country in the world and we have seen successful and significant benefits from these partnerships. »
Mr. Cardin indicated that these initiatives support the professional development, training and mentoring of Canadian creators from ethnocultural backgrounds and seeking equity.
He noted that Netflix, with a team of nearly 800 people in Canada, has spent more than $5 billion on Canadian productions over the past five years.
“This is money going into the hands of local Canadian creators, teams and businesses,” he stressed.
He urged the CRTC to be flexible in crafting rules that allow digital companies to support Canadian broadcasting, rather than requiring them to subsidize certain funds available to local players.
Canada’s major broadcasters voiced support throughout the CRTC hearing, now in its second week, for the regulator’s proposal to require an upfront contribution from foreign streaming platform giants.
They say such funds are necessary, even expected, to help offset a financial crisis that has hit their news services particularly hard.
CRTC president Vicky Eatrides said her organization recognizes the Canadian investments made by Netflix, but that Ottawa’s legislation gives the regulator the mandate to act.
“We heard from the traditional broadcasters … saying they were in trouble and we needed more money in the system,” she said. We hear you on investments. We’re trying to figure out how we can put in place the framework we need. »
Some Canadian broadcasters have proposed the creation of a dedicated news fund, which would take a portion of the money collected from broadcasters and use it to offset recent revenue losses from their news media divisions.
Asked about the idea, Mr. Cardin said it should be a temporary measure if passed, but he added that Netflix does not believe Canadian law requires everyone in the broadcasting system to contribute information.
“If you were to impose an initial base contribution, in our opinion we should continue to play on our turf, in the type of programming that our members expect to see on Netflix,” he said.
It encouraged the regulator to “carefully consider the unintended consequences of imposing an unreasonable initial base contribution” during its consultations.
“Our experience working around the world has shown us that countries with the fewest regulatory constraints and the greatest stability to invest in content that will delight our members are the most innovative entertainment markets,” said Mr. Cardin. .
