Despite criticism, Netflix touted its investments in local content creation on Thursday during public hearings of the Canadian Radio-television and Telecommunications Commission (CRTC). The company thus sought to dissuade the federal body from forcing the hand of the digital giants so that they transfer part of their profits to the Canadian media, as the latter hope.
The CRTC hearings, which take place until next week, focus on the development of a new regulatory framework which will have to take into account large digital platforms. During their testimony, Netflix executives acknowledged that it was normal for their company to be part of the Canadian regulatory system. But they argued that Netflix should not be subject to a basic financial contribution.
Bell Media proposed, for example, last week, during the CRTC hearings, that digital platforms be required to invest in a new fund which would aim to finance news production in the regions. However, the world leader in video on demand does not see why it should be obliged to contribute to a fund from which it cannot benefit, Netflix does not produce any news broadcasts.
“We invest in countries where the regulatory environment is simple, sustainable and flexible,” summarized Dean Garfield, vice-president of public policy for the Californian multinational.
France, the counter-example
Mr. Garfield cited South Korea and Spain as models, two countries that produce series for Netflix that have an international reach, without necessarily having particularly strict legislation on local content.
Even if it also produces successful series, like Lupine or L‘Bettencourt affair, France, with its compulsory tax rate of 5.1%, is the example not to follow, according to Netflix. The leaders of the streaming service have suggested that such a contribution could dissuade them from maintaining their current efforts in the creation of Canadian content.
“We hope that the CRTC takes into account the unintended consequences of an unreasonable mandatory contribution. We have the opportunity to make Canada a global leader in entertainment. And our experience shows that it is the countries where there are the fewest rules that are most likely to stand out,” added the director of public affairs for Netflix Canada, Stéphane Cardin.
Efforts in Quebec
The American company prides itself on having financially encouraged various initiatives in recent years. These are, however, essentially English-speaking. Netflix, which has offices in Toronto and Vancouver, has acquired some Quebec productions recently, but it has only ordered one original Quebec film so far, Until the declinea feature film released in 2020. The listening service also financed the recording of comedian Mathieu Dufour’s show at the Bell Center last year.
“I worked for five years in a Quebec production company before joining Netflix, I am very familiar with the unique system that exists there. We have several series, documentaries and films in French that are in the works,” assured Tara Woodbury, director of Canadian content, praising the recent agreement between the Quebec box Attraction and Netflix for the development of feature film projects.
Mme Woodbury, a former Sphere Media employee, spoke exclusively in English during her interventions. Stéphane Cardin, a French speaker, is the only one to have uttered a few words in French during the hour and a half that Netflix’s hearing lasted before the CRTC. The company’s Canadian director of public affairs, however, used English during almost the entirety of his speeches.