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

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#1 ·
Ottawa’s $500M Netflix deal draws reaction from incumbents

Ottawa?s $500M Netflix deal draws reaction from incumbents - Article - BNN

Ottawa’s five-year, $500-million Canadian content deal with Netflix drew swift reaction from the nation’s incumbent television content creators for the relatively low financial commitment. 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.
 
#2 ·
Does Netflix benefit from the same level of programming grants and tax breaks as Canadian broadcasters? I doubt it but I'd like to know the figures. Does Netflix benefit from a captive Canadian audience due to the protectionist regulation that Canadian broadcasters enjoy? No. Does Netflix programming reflect the low standards that comprises most of the Canadian content made by domestic broadcasters? No. Until Canadian broadcasters make a commitment to producing $6 billion worth of original programming that is suitable for worldwide distribution and do it without $billions in gifts and tax breaks from Canadian taxpayers, I suggest they accept the Netflix deal without complaint.
 
#3 ·
Quebecor, Bell, and Rogers were not quick to point out that their budgets benefit greatly from a vertically integrated, government protected oligarchy structure that lets them charge some of the highest wireless prices on Earth, keep archaic bundled packages around, and generally screw with Canadians every chance they get. Netflix has to compete with that (and does so successfully), and is spending this money on top of that.
 
#5 ·
Can you ELI5 film grants and tax credits? Like how much of a film is a grant or tax credit?

My quick read was that most government grants are a way (contract) to employ local talent, businesses and have the production crew spend money while in the area. No different than if a city wanted to host an international hockey tournament and offered to subsidize the ice time. It is a win-win if the production is financially successful that is.

Not sure about tax credits but I suspect the government would also get a little bump in sales tax revenue from the additional spending the crew brings to town.
 
#6 ·
#7 ·
Oh come on, Netflix doesn't always make great shows either. Low standards according to whom? I cancelled my Netflix subscription a couple of months ago because of the predictable and juvenile stuff offered. Marco Polo stuff is few and far between seasons. I fully agree Canadian broadcasters have a disgraceful track record for fulfilling promises just to renew their licences with CRTC but they also deal with an economy of scale issue: Canada is a small market. Even Netflix's Canadian library offers a smaller selection. They did defeat geoblocking -- probably cost them more than their announced Canadian production budget:) Just kidding, since I have no idea how much that cost them.
 
#8 · (Edited by Moderator)
I'm beginning to wonder just exactly what Canadian broadcasters are complaining about. Netflix agreed to spend $500 million in Canada. Ottawa promised what? Not to collect taxes on something they basically have no way to collect taxes on. Canadians are liable for all sales taxes but, since Netflix business offices have no physical presence in Canada, Netflix has no obligation to collect sales taxes. So get with it Canadian Netflix subscribers, start sending in those cheques for $1 and change every month to the Canadian tax office. I'm sure they would appreciate the windfall. Never mind that it would swamp them with paper waste and excessive costs to process the payments.

Oh come on, Netflix doesn't always make great shows either.
And neither does HBO, Sony or all the other studios, networks or OTT services. It's a sad reality that most creative works of art are a dud in the critical or monetary marketplace. That doesn't change the fact that HBO, Showtime, Netflix, Amazon, Google and other similar services have made and are making some of the best TV series ever. Apart from self aggrandizement, I doubt anyone could make the same claim about any Canadian broadcasters.
 
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