CBC ends streaming deals with Netflix

Despite the success of award-winning TV drama co-productions such as Anne with an E and Alias Grace, the head of the CBC says the broadcaster will no longer work with Netflix Inc.

“We’re not going to do deals that hurt the long-term viability of our domestic industry,” president and CEO Catherine Tait told the Content Canada podcast last week.

“A number of countries have done deals, as we did, with Netflix ... and over time we start to see that we’re feeding the growth of Netflix, or we’re feeding the growth of Amazon, rather than feeding our own domestic business and industry.”

Tait’s comments mark a notable change of policy from last December, when she told the Toronto Star she “absolutely” saw such cost-saving co-productions as being the future for the CBC.

And while no explicit reason was given for the U-turn, it comes as Netflix has significant ramped up its activity in Canada.

After setting up a production hub in Toronto in February, the Los Gatos, Calif.-based subscription service declared last month that it had already surpassed the $500-million figure it had promised to invest in original Canadian productions by 2022.

With popular classic TV shows such as The Office and Friends set to leave the service, and competition on the horizon from rivals such as Disney+ and Apple TV Plus, Netflix will need a stronger portfolio of original shows if it wants to hold on to its subscribers.

A spokesperson for Netflix in Canada declined to respond to Tait’s comments.

At the heart of the CBC’S complaint is the fact that Netflix and other streaming services, such as Amazon Prime Video and CBS All Access, are not required to collect sales tax in Canada and are not governed by the same rules as domestic producers.

For example, Canadian broadcasters are required to put five per cent of its gross revenue into the Canada Media Fund to support creators.

Netflix’s investment in Canada is entirely optional.

The situation has led to outspoken criticism from many broadcasters, including executives from Bell Media and Corus Entertainment.

“The idea that we are dealing with an empire that could in some ways compromise our own true cultural sovereignty? I do not stand down on those remarks,” Tait said.

Our priority is maximizing Canadian creators’ health and well-being in this market.

“I think what you’re going to start to see… is that we believe that anybody profiting from the Canadian system should contribute to the system.”

The CBC boss stopped short of definitively ruling out any future collaboration with Netflix.

“It’s nothing as a black and white as that,” Tait said.

But she suggested such collaborations are unlikely as long as it continues to be unbound by Canadian content and tax requirements.

“We’re looking very carefully at what is good for the ecosystem,” she said.

“Their priority is maximizing their revenues across a global audience.

“Our priority is maximizing Canadian creators’ health and well-being in this market.”