When we think of Netflix we think of everything good in the world. What's better than entire seasons of our favourite show available to watch literally whenever and wherever? The Canadian broadcasting company CBC doesn't seem to think Netflix is beneficial to Canadians, though. Because of their disapproval with how Netflix is affecting the Candian industry, shows like Netflix Canada's Schitt's Creek may be leaving the platform.
Last month CBC's CEO Catherine Tait made an announcement that could shake up how Netflix Canada looks. On a Content Canada podcast she said, "We’re not going to do deals that hurt the long-term viability of our domestic industry.”
The companies reason for the decision was apparently because their deal with Netflix was much too one-sided, and the only company walking out of the deal with more money and publicity in their pocket was Netflix.
“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.”
The announcement comes at an integral time where the Canadian film/production industry is at the biggest it's ever been. Last year, Netflix promised to invest $500 million dollars into Canadian productions. They've reached and surpassed that promise and even opened up a production hub in Toronto earlier this year, but Canadian bred production companies are just not seeing the benefit.
CBC's reason for ending their relationship with the binge-watching monster was because of unfair sales tax in Canada. While companies like CBC and CTV all have to collect sales tax in order to support other creatives in the industry, platforms like Netflix and Amazon have the option to opt-out of that contribution.
Although shows CBC and Netflix have co-produced, as well as the ones that have found a home on Netflix are doing amazingly well, what does this deal-breaker mean for their future on the platform? Show's like Anne With an E, Schitt's Creek, Kims Convenience, Alias Grace, and Workin' Moms may all be affected by this change.
While CBC has yet to touch upon the fate of these shows when their contract ends, we can't help but think we may be saying goodbye to their place on Netflix Canada.
When asked what CBC's intentions were going forward Tait replied with, “We’re looking very carefully at what is good for the ecosystem. Their priority is maximizing its revenues across a global audience. Our priority is maximizing Canadian creators’ health and well-being in this market.”
While it may be frustrating to potentially be losing access to our favourite shows, at least we know CBC is doing what it takes to grow our Canadian industry.