CBC pushes for ‘Netflix tax’

The CBC is pushing for online service Netflix and others to help fund Canadian content.

In a submission to telecom regulator CRTC, the broadcaster argues any “over-the-top” streaming service, such as U.S.-based Netflix, that earns more than $25 million a year in Canada should be required to pay into the Canadian Media Fund, online industry site Cartt.ca and Huffington Post have reported.

A CBC representative declined to provide details. “Our submission speaks for itself,” said CBC communications officer Julie Pagé. “We will elaborate on our proposals at the hearings in September.”

Netflix says it should not have to pay into the fund, telling the CRTC a “Netflix tax” — as it called it — would force the company to raise prices for Canadian consumers.

Netflix argues it’s unfair to pay into a media fund it cannot use to finance its own original programming. The tax “might translate into an increase in price without ... a commensurate benefit for Canadian content, its producers or Canadian consumers,” Netflix said.

The CRTC has previously ruled that over-the-top streaming services like Netflix should be exempt from CanCon rules, but as such services take an ever larger share of the TV viewing market, the Canadian Media Producers Association and others are calling for a change.

The group estimates Netflix’s Canadian revenue at $650 million.