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The CBC wants Netflix to pay for CanCon


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http://www.huffingtonpost.ca/2014/07/05/cbc-netflix-cancon_n_5558757.html

The CBC and Netflix have found themselves on opposite sides in a battle over the future of funding for Canadian content.

The CBC wants the CRTC, Canada’s telecom regulator, to require Netflix to subsidize the production of local programming.

In a submission to a CRTC review of Canadian TV regulations, the broadcaster argued any “over-the-top” streaming service, such as Netflix, that earns more than $25 million a year in Canada should be required to pay into the Canadian Media Fund, Cartt.ca reports.

But Netflix is adamant it should remain exempt from paying into the fund. In its own submission to the CRTC, the U.S.-based streaming service said a “Netflix tax” — as it called it — would force the company to raise prices for Canadian consumers.

This is a fascinating case study in the changing nature of media.

Netflix has already increased their subscription price, likely because it's producing original content, not just series' and movies from other media sources. On Canadian Netflix I do notice plenty of CanCon, though I don't know if Netflix has a quota for the amount of CanCon it has to offer.

I believe the CBC is trying to sustain it's out-dated method of subsidization for Canadian content. We've seen so much evidence recently that the CBC can't compete with the current way people consume media and doesn't deserve the $1 billion it gets from taxpayers.

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Netflix's business model is not set up to help fund Canada's (or any other nations) state broadcaster.

It kind of does. Netflix pays proper royalties to content providers to run it on Netflix. They aren't showing pirated content.

What CBC wants Netflix to do is pay for the development of CanCon. So they'll pay to create the content then pay again to air it. Netflix pays to create it's on content right now, and some critically acclaimed content at that.

In Canada, just about every show has a disclaimer at the end saying it was helped with a grant from the Canada Media Fund. I get the impression you can't develop content in Canada without help from them.

Edited by Boges
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Don't unblocking services and VPNs sort of make all this moot from the perspective of the consumer?

If you want to play that game. When I did try to access US Neflix (the numbers are often blocked so you have to keep changing them) I found more CanCon available there than I saw on actual Canadian Netflix.

I saw episodes of Undercover Boss Canada, I still have never seen that show available on Canadian Netflix.

I seriously doubt a significant number of people that subscribe to Neflix make the effort to spoof their ISP. I could be proven wrong if given statistics.

Edited by Boges
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....In Canada, just about every show has a disclaimer at the end saying it was helped with a grant from the Canada Media Fund. I get the impression you can't develop content in Canada without help from them.

So are the CBC and most other production houses in Canada just use to getting that kind of juice, so they expect Netflix to pay up as well ? In the U.S. we also see the big honking Canadian/Provincial logos at the end of CanCon programming (e.g. HGTV), but I didn't know that distributors or cable companies are expected to pony up to the "Canadian Media Fund". Does this apply to satellite radio and other distribution channels as well ?

Edited by bush_cheney2004
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So are the CBC and most other production houses in Canada just use to getting that kind of juice, so they expect Netflix to pay up as well ? In the U.S. we also see the big honking Canadian/Provincial logos at the end of CanCon programming (e.g. HGTV), but I didn't know that distributors or cable companies are expected to pony up to the "Canadian Media Fund". Does this apply to satellite radio and other distribution channels as well ?

I'm not sure that it does. But Neflix is a different animal all together.

Since CBC's mandate is to provide CanCon, I'm sure they'd benefit most from a newcomer being forced to pay a "Vig" to get into the game.

Of course Neftlix actually operates the way no Canadian content provider can. They are a user pay model, you're not forced to pay for it if you don't want to. Of course, part of the reason Neflix can be so cheap is because it broadcasts over the Internet, which one pays for separately. So subscribing to Neflix indicates you also subscribe to broadband.

Edited by Boges
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.....Of course Neftlix actually operates the way no Canadian content provider can. They are a user pay model, you're not forced to pay for it if you don't want to. Of course, part of the reason Neflix can be so cheap is because it broadcasts over the Internet, which one pays for separately. So subscribing to Neflix indicates you also subscribe to broadband.

Then the CanCon subsidy model should be going after the broadband providers as well, if not doing so already. If I understand the CRTC CanCon game correctly, Netflix has to provide some Canadian content to operate in your country, correct ? How much does the CBC want ?

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Then the CanCon subsidy model should be going after the broadband providers as well, if not doing so already. If I understand the CRTC CanCon game correctly, Netflix has to provide some Canadian content to operate in your country, correct ? How much does the CBC want ?

If it's not in the story linked, then I dunno.

And the the Networks tried to go after the Telecoms for forcing the consumer to pay for local programming.

http://www.crtc.gc.ca/eng/info_sht/tv13.htm

Didn't work.

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The LPIF ? $100 million since 2008 ???? English and French language split ? Okay, now I get it. The government has a history of subsidizing broadcasters and programming to preserve the resource and Canadian content...good times and bad. No wonder the CBC wants the government to tap a vein from Netflix. Amazing.....

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The way I heard it was that Netflix was upset that it cannot draw on those funds to create programming with Canadian content. Which does not sound like a completely unfair complaint to me: I would like to see them support CanCon the way everyone else does, and they should get the perks as well as the costs that go with that.

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The way I heard it was that Netflix was upset that it cannot draw on those funds to create programming with Canadian content. Which does not sound like a completely unfair complaint to me: I would like to see them support CanCon the way everyone else does, and they should get the perks as well as the costs that go with that.

A Canadian version of Orange is the New Black would suck.

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Netflix's business model is not set up to help fund Canada's (or any other nations) state broadcaster.

only your purposely skewed nonsense could infer the CBC's admission was seeking "Netflix funding"... but then again, it was really simply yet another means for you to purposely use the words "state broadcaster". As before, as always, just when will the "CBC be... just the CBC"... and not yet another avenue for you to do what you do best!

the insult intent, purposeful insult intent, has been played with content in mind, most particularly when "state broadcaster" began to be thrown into the mix; i.e., that the CBC content is dictated by the government, ala, Soviet style Tass, North Korea, Al Jazeera... Baghdad Bob, anyone? But what's to, as you say, convince? As I said, even if one could be at the 'agree to disagree' point... even if you couldn't ever reach that point, what purpose does it follow, what does it add, that when mentioning the CBC it has to be done so with all/any of the prefixes added... when the inclusion of the prefixes has absolutely nothing to do with/nothing to add to, the context or relevance of the CBC mention being made? Tell me Michael as to what I'm referring to when I write "CBC"? Do you need the prefixes "state controlled, state broadcaster, state sponsored CBC" added to allow you to know that I'm speaking to the "CBC"? Of course, the related backdrop to this is that significant discussion and disagreement has occurred over this issue... several MLW members have taken exception. And accordingly, the purveyor responds by purposely adding those prefixes because they've become a matter of contention... purposely added, repeatedly, incessantly, post after post, thread after thread, ad nauseum. I used the contrast reference to PBS (or NPR, etc.)... that it's analogous to someone purposely adding "state controlled, state broadcaster, state sponsored to a mention of PBS; that in the context being discussed, no one would know what "PBS" is referring to without the prefixes added.

need I add the point that this has become one of SunNews' ploys to now, similarly, purposely refer to the CBC with "state broadcaster, state controlled' prefixes added?

as for sponsorship, of course the CBC receives government funding... as does American public broadcasting. That's certainly no insult to acknowledge that point on either account. However, the purveyor counter's with direct/implied suggestion that "state sponsored" for American public broadcasting isn't valid/warranted because the amounts of government funding are different. Apparently, because the amount of funding is different/higher for the CBC, the purveyor suggests he just absolutely needs to append that prefix to CBC to ensure... to ensure... what? Equally, comparisons have been made between Canada's National Broadcasting Act/CBC and the U.S. Congressional initiated U.S. Corporation for Public Broadcasting/PBS, NPR, etc., as to comparable mandates and funding outlets. But no matter... to the purveyor, this still doesn't substantiate referring to American public broadcasting as "state sponsored, state controlled". Apparently, the purveyor is most selective, particularly when he thinks he can (eventually) get a rise/response from a member, get another rise/response from a member, by purposely using the prefixes to qualify the CBC!

of course... it begs the larger question, why does any self-respecting (claimed) American give a rats-patooey about the CBC... about qualifying every CBC reference with the prefixes spoken of... repeatedly, incessantly, post after post, thread after thread, ad nauseum?

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Netflix takes a ton of money out of Canada... the prior CRTC ruling that favoured Netflix not being regulated for content reflected upon a time when Netflix did not create its own content... and, of course, it does now. To not be in favour of CanCon is one thing; however, if you see its merit/need, you may be in agreement with the submissions from the Canadian Media Production Association, Music Canada, etc.; those calling for Netflix (and others) to contribute into a 'Canadian Media Fund'.

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If your content is any good, people will buy it. Viewers will rush to see it, and advertisers will trip over each other to give you money. People will even line up to fund your production costs. If you need to extort companies that are making money to pay for your content, all that means is your content is crap. Make stuff people want to see, and the problem will take care of itself.

What CBC should be doing, is setting up their own Kickstarter/Indigogo type of site where all the people who claim to be supporters of the CBC can prove it by funding the programming on a project by project basis.

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What CBC should be doing, is setting up their own Kickstarter/Indigogo type of site where all the people who claim to be supporters of the CBC can prove it by funding the programming on a project by project basis.

Fair enough

What about...CTV Global CHCH CITY et al?

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hey MLW members Boges/Bryan... CBC is but one of many submitting to the CRTC. Gee, how did this become yet another 'bash CBC' thread? Go figure.

Because they're the ones saying the CRTC should hit up Netflix for money.

Edited by Boges
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Because they're the ones saying the CRTC should hit up Netflix for money.

BS! The same false implication has been put forward now several times in this thread... implying the CBC is seeking direct funding from Netflix. That is false. What the CBC has done is no different than what the Canadian Media Production Association, Music Canada, etc., have done... put submissions before the CRTC calling for Netflix (and others) to contribute into a 'Canadian Media Fund' relative to CanCon development.

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Because there the ones trying to hit up Netflix for money.

You think Bell Shaw don't think Netflix not paying where they must is alright by them.....CBC was just first in line.....or they think it'll get them out too.

The fundamental question is do we still need the Media Fund? Is the market share large enough to self-sustain and if not.....should it die what are the repercussions of such a situation?

I believe CanCon will die.....no matter how good it is, as it's like HBC trying to survive in a Walmart world. How are Cdn sovereignty views affected by this result.

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