
Let’s say you are Netflix and you have been very successful in promoting your content subscription service, and have succeeded in signing up roughly half the households of a given country. And let’s say that this country is concerned about preserving its means of cultural expression in an audio-visual world largely dominated by major US producers of content. In pursuit of this goal, this country has for years maintained a variety of policies designed to tilt the playing field in favour of its domestic content producers (with limited success, I might add.) One of these policies is the creation of a domestic content production fund into which broadcasters and content distributors (but not online distributors) must pay a percentage of revenues. And let’s say that a number of stakeholders in this country, from the direct competition to domestic producers of content who are subsidized by the content production fund want you, Netflix, to be required to contribute to the fund in order to expand it so as to make yet more domestic content. That’s not all. As an entity outside Canada selling a digital product, you are not required by law to collect sales taxes on your Canadian subscriptions but you are nonetheless being accused by your Canadian competitors of having an unfair advantage. If you can absorb all that, then you will have some idea of the issues that Netflix is grappling with in Canada. It’s a minefield–with many people laying mines. Continue reading “Netflix in Canada: Let No Good Deed Go Unpunished”