Feds strike Netflix deal to promote our culture
OTTAWA — The Liberal government’s promotion and encouragement of Canadian culture at home includes leaning heavily on those influencing it from south of the border.
Heritage Minister Melanie Joly’s much-awaited reboot of federal cultural policy includes new tax dollars, but the government also highlighted a $500-million deal with Internet streaming giant Netflix as part of a hoped-for cultural renaissance.
Unveiling the Creative Canada policy, Joly said she wants to make sure all foreign platforms are part of the promotion and protection of Canadian stories.
“We want them to participate in our goals to support the creation and discovery of Canadian content that showcases our talent, our cultures and our stories,” she said in a prepared text of her remarks. “I’m pushing for commitments that benefit our industries.”
The deal with Netflix sets up a Canadian branch of operations for the company and commits Netflix to investing $500 million over five years in original productions in Canada. The deal, agreed to under the Investment Act, means, among other things, that if Netflix doesn’t live up to its side of the bargain, the government could impose fines.
Joly also highlighted initiatives by Google and Facebook. The latter will help to fund digital journalism development in a new program with Ryerson University in Toronto.
The state of Canada’s news media — declining revenues and readership for traditional outlets being among the major challenges — was given a nod by Joly, but no new federal cash. “Our approach will not be to bail out industry models that are no longer viable,” she said. “Rather, we will focus our efforts on supporting innovation, experimentation and transition to digital.”
The policy comes after months of consultation with Canada’s cultural sector, many members of which had hoped to see new broadcasters, such as Netflix or YouTube, become part of the formal regulatory landscape for Canadian companies, which requires them to air certain levels of Canadian content and contribute financially to a fund to help develop it.
Private broadcasters’ contributions to the Canadian Media Fund have dwindled in line with falling revenues and Joly announced Thursday that the federal government will increase its share of the fund to keep its balance sheet steady.
The Liberals are also looking for new markets for content and are setting up a new creative export strategy, setting aside $125 million for it over five years. But that’s about it for new money in the policy, for now.
The government is looking at modernizing many of the other funds that contribute to the development of Canadian culture, such as those which support the book and periodical industries. Cash already set aside in previous federal budgets for cultural programs will also be allocated to the establishment of creative startup businesses.
Several pieces of legislation are up for review, including the Copyright Act and Broadcasting Act. There will be a broad review of the Canadian Radio-television and Telecommunications Commission.