Several key Canadian film and TV development programs face uncertainty as Netflix Canada has paused its sponsorship of arts organizations, reports the Globe and Mail.
Since 2017, Netflix has invested over $25 million in initiatives supporting more than 1,200 Canadian creators. However, programs such as Vancouver’s Pacific Screenwriting Program (PSP), Hot Docs, and the imagineNATIVE Institute are now at risk.
At the imagineNATIVE Institute, which supports Indigenous professionals, over 90% of the organization’s programs were funded by Netflix. But now the streamer says any money beyond 2025 is unclear.
“I’ve been very grateful for their support, which since 2020 has been able to help more than 50 Indigenous professionals working in the screen media,” said Naomi Johnson, imagineNATIVE’s executive director, to the Globe.
It’s no surprise that Netflix is reconsidering its funding for these programs, as new CRTC regulations under the Online Streaming Act, now require foreign streaming services to contribute 5% of their Canadian revenues to local production.
Netflix has challenged these rules and stated that it must redirect resources to meet the new requirements. Yet the federal government under Prime Minister Justin Trudeau had no issue making tech giants pay and now we’re seeing companies call the government’s bluff.
“The CRTC moved ahead with Bill C-11 mandated streamer payments without addressing issues such as what constitutes Cancon and what existing payments will be counted as contributions. This was the inevitable response: Netflix pulls millions in sponsorship,” said University of Ottawa Law Professor, Michael Geist, in reaction to the news.
“The government and Bills C-11/C-18 supporters dismissed the legislative risks as “bluffing” and thought that hundreds of millions in new mandated payments would be consequence-free. Instead, Canada is left with blocked news links, cancelled deals, and lost sponsorship money,” noted Geist on Tuesday.
Angela Heck, executive director of the Whistler Film Festival Society, said Netflix funded up to 50% of their professional development programs in some years. Without funding, programs are now in jeopardy, and also for the sector in general.
Netflix Canada said in a statement, “despite our long-standing commitment, the government has chosen not to acknowledge our substantial support for the Canadian film and TV sector. Consequently, we will be unable to continue funding many of the programs that have come to rely on our backing, as we are now required to allocate resources to meet the CRTC’s new investment mandate.” Oh, Canada.
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The gov't needs $$$ to go into general revenue, and doesn't want to miss out on $$$ going directly to these organizations.
Rob is an autistic child who believes anything Trump I mean Poilievre says
Netflix made $5.4 billion NET profit in 2023, more than a 20% increase. Net revenues in North America alone were $14 billion. And they take a lousy $25 million in established funding away from Canadian creative incubators. This is going to cost the American-owned and operated streamer a lot more than a measly $25 million in good will. Yes, the streamers need to put money into production now, but that's a no-brainer. They get access to 80 million eyeballs (most of us have two). And huge revenues. They are not a Canadian company, and they are alienating Canadian content creators. Won't end well.
Do you think any Canadians will stop consuming content from the US streamers if they don’t find Canadian content?
Whom do you think it won’t end well for? Unless the gov seizes their cash to distribute, what’s the downside for them?
Because as the overfunded CBC has shown, Canadian content is subpar and not as enjoyable as that which comes from the US. Let Canadians consume what they want. It's not like we're going to stop consuming content just because it's not Canadian? No, probably stop paying these streaming companies when the taxes imposed on them trickle down to us, the consumer, and find alternatives to consume said content.
Our Federal Liberal government, implementing new policies and supporting bureaucracy that have unintended consequences..
🤣🤣 Useless PP supporter, hey clown he's attempts with non confidence is funny as the only person in the house who has no confidence is Poilievre, dude is so egotistic he sounds like Trump and not on single Canadian wants Trump
The polls would say otherwise as would all of your downvoted nonsense. Nice try though
You have 3 down vote, you need to seek help with being a useless MAGGOT MCGA, you understand you are equal to all the junkies Jason
Blackmail. By a whiny US corporation making hundreds of billions ($9.6bil in 2nd quarter of 2024 alone) internationally.
Blackmail? Choosing who they fund is hardly blackmail.
Now, if the gov was to trying to block access or seized their property to redistribute internally, that would be blackmail.
It was Trudeau’s CRTC that demanded that they must seize money from companies and dictate how it must be spent. The expanded CanCon funding rules. As always, when the government tries to dictate where private money is spent, that’s where it goes. Are you really going to act surprised that the companies don’t continue to hand over even more money voluntarily, on top of what’s been forced from them? Similarly, when govs decided to fund more and more social services, private donations to charities that provide those types of services go down. When govs dictate that a company must fund certain special interests, those companies spend less on other things.
Utopian thinkers never seem to live in reality. They always seem genuinely surprised at the unintended consequences of their mandates.